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Air Canada T.AC

Alternate Symbol(s):  ACDVF

Air Canada is an airline company. The Company is a provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market and the international market to and from Canada. It provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. The Company’s Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the airline partner network of 45 airlines, plus through a range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using its passenger and freighter aircraft. Its Air Canada Vacations is a tour operator, which is engaged in developing, marketing, and distributing vacation travel packages in the outbound/inbound leisure travel market. Air Canada Rouge is Air Canada's leisure carrier.


TSX:AC - Post by User

Comment by givemeabreak1on Oct 14, 2021 11:49am
48 Views
Post# 34005343

RE:RE:RE:Common sense!

RE:RE:RE:Common sense!I-Bone every time you open your mouth it proves that you have minimal understanding of any business.  Sugguestion take a couple of simple economic courses.... You ask how it makes sense for AC to continue to increase flights at a loss when they have to report to share holders.  First, I will cover the very simple! Think of it as a start up you usually always lose money in the first few quarters as there is a cost to starting up.  Similarly, if you have equipment idle.

Now some basic microeconomics.  A busisness will typically operate, despite losses, if management is optimistic about the future and constinued sales lessen losses.  
If Management can bring variable costs to 0 then you shut down.  However, that is seldom the case so the choice to operate depends on what your variable costs are.  The question is always are you losing more money with idle routes or losing more money with active routes.  If I can operate a route at a loss lower than having the plane sit idle it makes sense to operate the route as it limits your loss.  It also prepares for future successful operation so it makes sense to operate whether you are losing money or not.
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