RE:RE:Flair Trudeau airport cheap : from Monteal July,1thMy life has depended on income from Air Canada since the day I was born. It was TCA and it was 15 years old at that time. It was a contributor to my education as an Behavioral Economist.
I speak to the idea that there is a market for cheapness in the Canadian airline market from my education and my observation of this market in the time I have been on this planet.
My first point is that there is always a market demographic for cheapness in the Canadian air travel market. That is why every airline in Canada has been bankrupted in my lifetime. There is a solid segment of the Canadian demand for travel that is based on being "just cheap". This includes all the governments who have put the onus to pay for the infrastructure of Canada's air industry through fees and rents and taxes to be mostly collected through the only airline that has survived through alll of these governments. Its not just the FNG.
The demand for air lines breaks down into 2 groups. Those who demand Air Canada and those who demand anything but Air Canada. Hollis Harris identified that decades ago.
Will this change? Heck No!! The difference is that Air Canada seems to be playing hardball and demanding for the Canadian public to Pay to Play through higher fares or by having the government (the Canadian public) pay up for the damage to the infrastructure.
What would make sense is for the government to replace the loss of working capital for the businesses that have had to dig into that reserve to survive this pandemic. I don't think they can expect that Air Canada is going to fall on a financial sword like when Canadian Airlines went bankrupt. The government needs to buck up soon. Maybe with the budget on 04/19? Dare to dream.
The only thing is that Air Canada needs to play this right so that the government does not look desperate or foolish or stupid. As part of negotiations it is called "saving face". Like a good corporation AC will move forward to make money which is what companies do. Government is there for the other agendas that do not fit the mold for making money.