Archive for the 'Air Canada' Category

Air Canada to Return to Toronto City

After getting kicked out a few years ago, Air Canada will return to Toronto  City next year. (It was called Toronto City Centre Airport back then, the airport has since been renamed Billy Bishop Toronto City Airport.)

Air Canada says it will provide “up to” 15 flights per day to Montreal starting in February. If it does fly all 15, that would use up all 30 slots it received back in June.

The flights will be operated with Bombardier Q400 aircraft – and not by Jazz Air. While it was never certain Jazz would be serving the airport – it was reported earlier this year that the new Q400s that Jazz will be receiving next year could be used for Toronto City service.

Instead, Air Canada has formed “capacity purchase agreement with Sky Regional Airlines Inc., an associated company of Skyservice Business Aviation” for the service. (While the former CEO of Skyservice Airlines is the CEO of Skyservice Business Aviation, there’s no link to the defunct airline.)

“Selection of Sky Regional Airlines was based on a number of criteria including a competitive cost structure, a proven track record in customer service excellence and experience maintaining Dash 8 Q400 aircraft,” says Air Canada, who also notes that it “maintains a strong commercial relationship” with Jazz.

Air Canada did not mention how the aircraft would be configured in its news release. The Q400s that are headed to Jazz will seat 74 passengers. Porter’s aircraft seat 70. There’s also no word on how the flights will be branded and what livery the aircraft will wear. (For example, Air Georgian B1900s are painted in a livery close to the mainline colors.) The airline did not respond to a request for comment.

I’m also interested to see if Air Canada differentiates the product at all. Porter makes a point of providing a premium experience to its passengers.

And speaking of Porter, what does this mean for them? Fortunately, Air Canada’s number of slots puts a limit on competition, but 15 frequencies on a route like Toronto – Montreal is a big deal. Continental was also awarded slots at Toronto City, though the airline has yet to announce any service. (I would guess the slots would be used for Newark service.)

Naturally, Porter must provide a competitive schedule – which they’re already doing by flying more frequencies than Air Canada will. Price is of course a factor, and we’ll have to see if passengers will choose Porter for its amenities, such as its cushy lounges in Toronto or complimentary wine and beer onboard.

Meanwhile – the airline must continue to improve its financial results. The carrier lost $4.6 million (Canadian) in 2009, though it did turn a net profit of $455,000 in the last quarter of the year.

Porter’s traffic results continue to be interesting – with an 8.2 point boost in load factor during September, to 55.8%, on a 79.9% traffic boost while capacity rose 53.5%. Though without any revenue data we don’t get the full picture.

The airline also needs to keep on growing – though it does have a limit as to what it can do out of Toronto City. I’ve tried to take a stab at it before, but the airline said in its IPO filing it is focusing on routes under 800 miles. And it will also be very interesting if a U.S. codeshare partner were to emerge.

Air Canada Beefs Up Service to LAX and SFO

This morning Air Canada issued a news release announcing that the company has “launched its California expansion” today with the inaugural flight between Toronto and Orange County. The airline has also announced its entrance into the San Diego market with a nonstop from Toronto beginning on June 17. But the airline also announced some interesting additions to its existing flights from Toronto to Los Angeles and San Francisco.

Both of these routes have very little competition at the moment – on each route Air Canada has four frequencies, while a US airline flies one. For LAX, that’s American. In San Francisco, United has one daily flight but Air Canada has a codeshare on it anyway. But Virgin America recently announced that it intends to launch service on these routes as early as June, pending government approval. Lo and behold, Air Canada is enhancing its service on both routes starting on June 1, which makes me think that the prospect of new competition from Virgin is the motivator for these moves.

San Francisco is pretty basic – a fifth frequency will be added using an A320. That means the earliest flight from Toronto to SFO moves up an hour and twenty minutes to 8 AM, and San Franciso will get an additional midday departure back to Toronto.

Los Angeles will remain at four frequencies to Toronto, but is replacing an A319 with an internationally-configured 767-300ER, which features Air Canada’s Executive First cabin with lie-flat beds (pictured above). The aircraft will operate the first YYZ-LAX flight be and then fly back to Toronto as the second departure from Los Angeles. So here the airline is boosting capacity but is also trying to provide a superior product (and therefore is charging a slightly higher fare compare to the other flights). On one hand I thought this might be a move to attract more premium traffic for those traveling across the pond to Europe, but the flight to YYZ arrives there at 8:09 PM. One can still make some European connections at that time but it’s definitely not the most attractive schedule for that purpose, which makes me think that Air Canada is really focusing on the O&D passengers between the two cities.

Air Canada Boosts Transborder Flights From Toronto

Yesterday, Air  Canada announced an interesting expansion of its existing transborder flying out of Toronto, boosting current stations and adding new ones. To me, it really looks like Air Canada wants to add additional feed for its international routes out of Toronto, and Air Canada isn’t very shy about it. Ben Smith, Executive Vice President and Chief Commercial Officer said that the move “demonstrates our commitment to drive Toronto’s growth as a hub…Our strategy is to leverage our hub to make it a global transfer point for domestic, transborder and international travellers.”

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Air Canada will be using E-190s on the Portland (OR) -Toronto route.
Photo Credit: Air Canada.

First, let’s take a look at the West Coast cities. Currently, Air Canada only has Toronto nonstops to the bigger cities: Los Angeles, San Francisco, and Seattle. But now some smaller stations will be getting them as well: Orange County, San Diego, and Portland (OR), each with a daily roundtrip year-round. Orange County is a completely new destination, though Air Canada has expressed interest in serving it for awhile (though Vancouver was originally thought of as one of the first destinations). San Diego and Portland already have service to Calgary and Vancouver (it’s mainline for the former, Jazz for the latter).  Service for San Diego and Orange County will be with A319s, while the Portland trip will have an E190. That’s a decently-long route, nearly 2,100 miles, which I think shows the flexibility it provides for carriers. And while some might think of the E-Jet has an RJ, it’s a mainline aircraft for Air Canada, complete with TVs for each passenger.

As we move across the country, the other announcements aren’t too out of the ordinary for Air Canada. Memphis will get two roundtrips to Toronto with Jazz CRJs. This used to be a route served by regional carrier Pinnacle for Northwest/Delta. Cincinnati will also be getting two roundtrips on CRJs, though for now it only appears to be a seasonal service. Delta also has a few daily CRJs on this route as well. Meanwhile, Portland (ME) and Syracuse will be getting two daily seasonal flights with Air Georgian Beech 1900s, like many other cities in the Northeast.

Anyway, I looked at some Air Canada schedules, and these flights seem pretty well-timed for connections, especially to and from Europe. And to be honest, Toronto is a good place for connections, just geographically speaking. For example, an San Diego-Toronto-London itinerary is 217 miles shorter than a San Diego-Dulles-London itinerary.

Personally, I think this is a great move. If Air Canada can bring over US passengers who want to travel internationally from other carriers, it will provide a nice boost to its Toronto hub and potentially boost load factors on its existing international routes.

Some New Routes from Air Canada

Air Canada has announced a couple of interesting new over the past few days. The first is new daily service to Copenhagen (CPH) from Toronto (YYZ), operated with a 767-300ER. While Air Canada has announced European routes that will be operated with a denser configuration, this route will be operated in the traditional 211-seat layout. That route will help increase connectivity with Star Alliance partner SAS.  Service will only be daily in the summer, with reduced frequency during the colder months (after a check of the timetable it looks like four flights/week). Service begins June 24.

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The airline has also announced seasonal daily service from St. John’s, Newfoundland and Labrador (YYT) to London Heathrow (LHR) from May 27 to September 26. The airline has served this route on a seasonal basis before, but did not during the two most recent summers. But the route is interesting because it’s a transatlantic flight being operated with an A319 (the same aircraft was used in the past). Because St. John’s is so far east, the flight isn’t too long at 2,316 miles. For comparison’s sake, a nonstop to London from Toronto is 1,240 miles longer, while a Toronto-Los Angeles flight is only 141 miles shorter.

Nick Careen, Vice President, Airports for Air Canada remarked that this route will be the “fastest and most efficient way of making connections to several European capitals such as Stockholm, Oslo, Copenhagen, Vienna, Moscow, as well as Dubai.” I found that Dubai mention a bit odd, considering that none of Air Canada’s Star Alliance partners fly there from London, which doesn’t sound too convenient compared to other options that already exist (i.e. YYT-YYZ-FRA-DXB).

Photo credit:

http://www.flickr.com/photos/husseinabdallah/ / CC BY 2.0

New Bag Fees from Air Canada

Yesterday, Air Canada announced a couple of new bag fees. While new fees are never fun, the additions make sense based on what other carriers have been doing.

For flying to the United States (including Hawaii), Air Canada will begin charging $30 (same price for Canadian and U.S. dollars) for the second bag, which is in-line with what U.S. carriers charge for domestic and Canadian flights. Air Canada’s policy is still a bit more generous as there is no charge for the first bag. Meanwhile, passengers flying to Europe and Israel will have to pay $50 for their second bag, which, once again, is in-line with the policies of other airlines.

What’s interesting is that passengers traveling within Canada still get two free bags, and personally I think Air Canada is keeping that policy the same as WestJet doesn’t charge for the first two bags, either. Yes, WestJet does have its own transborder flying but its United States network is less developed than Air Canada’s.

These fees come into affect for economy travel starting on or after January 19th, but do not apply to passengers who booked travel before yesterday. Like most other carriers, this policy doesn’t apply to elite members of Air Canada’s frequent flier program Aeroplan.

Air Canada Begins Testing Inflight Wi-Fi

Air Canada announced last week that it has begun a ten-week trial of inflight Wi-Fi provided by Aircell’s Gogo service, which will be available on some flights to Los Angeles from Montreal and Toronto. Two A319s have been equipped for the trial period, which lasts until January 29. After that, Air Canada will evaluate rolling out the service to other aircraft and routes.

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Photo credit: Chris Weyer.

So, why pick those flights? Well, right now the service will be turned on once the flights cross the United States border. As you can see on this Gogo coverage map* (I decided to add on some estimated routes), both of these flights spend a lot of time over U.S. airspace. Plus, take rates are generally higher on long routes like these.

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The plan is to eventually have the service throughout Canada, and Flight reports that “Aircell is in negotiations with the Canadian ATG licensee, SkySurf Canada Communications, to provide connectivity in Canadian airspace.”

The service is available for laptop users for $9.95 in US dollars, which is cheap considering that Wi-Fi for flights of that length usually costs $12.95.  Apparently that price was chosen due to the exchange rate. Aircell tells me that “we opted to launch this initial phase at our USD 9.95 price point rather than $12.95 – which would convert to approximately $13.75 in Canadian dollars. We intend to ultimately provide the product in Canadian dollars with pricing in line with our U.S. market pricing structure.” The price for users of mobile devices is $7.95, which is the same amount a traveler on a domestic U.S. flight would be paying.

So let’s see if Air Canada decides to expand the service. The big question is how many people will actually use the service. Mary Kirby had a very interesting blog post on that subject earlier this week.

*Original map can be found here.

U2′s Tour Plane

U2 has been on tour, and the band has been using a specially-paint Air Canada Jetz A320. Spotter Roman Dolinsky, or N75715 on NYCAviation, was able to get a closer look at Newark.

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You can get a closer look and see Roman’s other photos of the aircraft here. Thanks for letting me post your photos, Roman!

Air Canada to Reconfigure 767-300ERs for Leisure Routes

Last week, Air Canada announced new service to Barcelona and Athens from Toronto and Montreal, with 767-300s configured to seat 244 passengers.

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Wait, 244 seats? That’s way bigger than what Air Canada currently has on its 763s. I asked about how the cabin would be configured and received this answer:

These two new seasonal routes for the summer of 2010 to leisure destinations Athens and Barcelona will offer Economy service in both cabins and will be operated using Boeing 767-300ER aircraft that will be specially configured: 222 seats that provide 31 inches of legroom, and the option of a forward cabin with 24 seats that are larger and provide enhanced legroom of 38 inches.

Air Canada has three 763s left that weren’t refurbished as part of Project XM. They were supposed to leave the fleet, according to this report, but now, there’s a use for them.

I was told that the three aircraft will go under a “cabin refresh program and reconfiguration this fall” and that the 767s “will be operated to select seasonal leisure destinations.”

This news article also reports that there will be a third market served this summer in addition to Barcelona and Athens, and that they will be used for new seasonal service from Calgary to Honolulu and Maui, and some other leisure routes.

This is pretty interesting here, as Air Canada is kind of making an LCC within itself, not necessarily in terms of the costs, but simply how it will be laying out the cabin. Note how the forward cabin will still be receiving “economy service.” Plus, right now the front cabin has 58-60 inches of legroom – that’s going down to 38 inches! (This almost sounds like Air Transat.)

Will it work? I think there’s a solid chance here. Delta and United, for example, use 767s that are in domestic configurations on Hawaii routes. These aircraft seat more and have premium offerings that certainly aren’t as luxurious as the international aircraft. (The domestic United 763s, for example, won’t be receiving the new business and first seats, as far as I know.)

As always…we’ll see how it goes. :D

Photo Credit:

http://www.flickr.com/photos/rich90/ / CC BY-ND 2.0

WestJet’s Strong Results

The beginning of the month is a great time to look at data. Many of the airlines release their montly traffic results and he DOT releases its montly report on delays, baggage, and complaints.

Yesterday, both WestJet and Air Canada released their traffic reports for August, and both had strong results, as reported by Reuters. Air Canada reported an 85.4% load factor for mainline service in August, up one point from the same month last year. Jazz’s (Air Canada’s regional carrier) load factor went down 4.1 points from 77.3% to 73.2%. Systemwide load factor was up 0.6 points to 84.4%. WestJet’s load factor was good as well. Load factor was up by 0.4 points from 88.0% to 88.4%.

But there’s one important difference. In terms of ASMs, Air Canada cut mainline service by 2% and Jazz service by 4.1%, for a sytemwide 2.2%  decrease. WestJet, on the other hand, greatly increased capacity. Compared to August 2007, ASMs had increased by 21.9%!

For the year, WestJet’s load factor was down 0.6 points compared to the same period last year, but capacity has increased 20.3%. To increase capacity that much and have traffic grow with it that nicely in this environment is incredible, in my opinion.

We will have to see if WestJet can continue to grow, but right now it seems to be in the cards. From a recent article in Airline Business:

No order cancellations. No layoffs. In fact, says Durfy, “we plan no capacity cuts”. This sounds like the defiance of someone who is either oblivious or doesn’t care. WestJet’s capacity growth, measured in available seat miles, will be 16% this year, compared to 19% last year and a projected 8% next year. By 2010 it will be back up to 10-11%. “We plan an average annual growth of around 10%,” says Durfy. “The actual number each year depends on delivery dates.”

I look forward to watching WestJet’s moves in the future, and it will be interesting to see how their new partnership with Southwest will affect their traffic.

Air Canada Finishes Noise Testing at SNA

Huh? When I read this story over at Aviation Week I was kind taken aback. I’ve never heard of an airport requiring an airline to perform trials like these before, but I guess I’m still pretty wet behind the ears.

Basically, Air Canada had to bring an A319 down to Orange County, push in some newspapers to make the airplane weigh as if it was carrying passengers, and do a few takeoff runs. This is primarily due to Orange County’s strict noise abatement policy. I guess SNA has some vocal NIMBYs.

While I understand residents would want to minimize noise, I think this goes a little too far. The noise performance of the A319 is pretty well-documented, and flying a plane down from Canada and back (empty, I assume) and doing these tests can be expensive.

In an environment where airports around the country are fighting or will be fighting to mainatin air service, places like SNA shouldn’t be too picky when an airline wants to start service, in my opinion. It’s not like Air Canada wanted to bring in DC-9s at 6 AM or anything like that.

(Image Credit)