RE:RE:RE:RE:RE:RE:RE:Over $4 good bye $3sWrong, AC couldn't sign a deal with Horizon , Delta or United... they are American owned. No options in Canada except starting your own regional carrier so that's why Jazz had a lot more leverage.
quote=murrarms]
Pj1958 wrote: It's a lot harder to start a new regional carrier , than to start a new frequent flyer program. First of all
AC has no power overemployees unionizing, but they have already implemented a two tier pay scale for new employees , that takes 10 years to get to the top of the pay scale , and they start at a few cents over minimum wage... they have already done this with customer service agents and baggage loaders and cargo employees st AC.... they have also got rid of defined pension plans .They know how to start and run frequent flyer programs , since they started and ran Aeroplan. They could recreate it without a big cost ( it's not like starting a new regional airline) and they could get rid of expensive benefits that exist in Aeroplan , that people couldn't cry foul over if the current Aeroplan program was changed ( ie. up the amount of points required for flights , up the change / cancellation fees ....since Aeroplan is more generous than other programs .) Its an uphill battle for AIM to renegotiate.
Thanks AC didn't have to start a new regional carrier . All AC had to is renogotiate a seat purchase agreement with another regional carrier ex. Horizon,Delta United, etc Jazz didn't delay negotiations and settled quickly. As well this didn't have no effect on customers renegotiating a seat purchase agreement . Loyalty programs affect customers directly on both sides of the fence. Also AC stock has gone from $13- $16 in the last 2 weeks. AC could be affected if loyalty areoplan settlement is delayed.[/quote]