RE:RE:Eliminated Air Canada routesI think there is more to the news that the management is not letting on. If chorus gets paid the same amount by air canada no matter what, there is 0 reason for Air canada to cancel all those flights from chorus because it's a sunk cost.
If I was Air Canada and I had to pay 10 dollars for the airplane to sit on the ground or 10 dollars for the plane to run and carry 1 or 2 passsengers, i would rather pay 10 dollars for the plane to carry 1 or 2 passengers and try to start a courier service for all the empty cargo space.
https://www.cbc.ca/news/business/air-canada-service-cuts-1.5632874#:~:text=Air%20Canada%20is%20indefinitely%20suspending%2030%20domestic%20regional%20routes%20and,a%20result%20of%20COVID%2D19. in the article it specifically says:
"
Air Canada said it expects the airline industry will not recover from the damage incurred by the coronavirus pandemic for three years at least, and makes it clear that Tuesday's route cancellations may not be the end of any drastic steps that may have to be taken. "Other changes to ... network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate," the airline said."
I personally expect Air Canada to try to renegotiate the terms with Chorus on the leasing to lower costs, which directly will affect chorus' revenues. As well as the grounding of the regional leased fleet to save costs via something unmentioned probably hurting Chorus in some way. Air Canada in survival mode.