RE:Transatlantic Is Recovering Better Than DomesticThanks for sharing. Very informative. Few points:
1. Atlantic better than domestic: This is a very positive development. Earlier estimates were that domestic market will be the first to pick up before international. But Atlantic has taken the lead. At some point of time domestic market will pick up (in coming few months) when intra provincial restrictions ease off.
2. Domestic short distance business travel not coming back is a challenge. It means, they will have to alter the network and allocate fleet accordingly. Reduced frequency with more number of seats. 737 instead of 320. Players like Porter (focus on Toronto island) would find this more challenging. This will also reduce unit fuel cost impact.
3. Focus on India/MEA market: This is another positive development.
It mentions precovid Montreal-Delhi fare was $441 higher than Toronto/Vancouver. It stil reflects in current pricing. Direct non stop flight is a better alternate then indirect route and it can command premium.
Toronto-Del frequency increase, most likely higher demand as people are looking to avoid indirect flights. Precovid Toronto-Del point to point had almost 0.5 million passenger and it means daily traffic of 1400 passengers. This route had seen 3 direct flights (AC, Air India and Jet Airways) in the past and that meant about 900+ daily seats. AC could goto 2 daily flights from 1.5.
Toronto-Mumbai is another one which could start soon.
It also mentions successful Doha (on to Pak) flight, which makes sense. Pak market previously was served with european airlines and those flights are now reduced to South Asia.
4. Australia: Precovid there were 3 daily flights. With Sydney flight coming in December, this market will open. But it seems, it will take time (my guess 12 months) before going back to precovid capacity.
5. AsiaPacific: AC seems least optimistic of this market. Most likely the last one to revive. It seems this capacity will be deployed to India/MEA/European market with enhanced capacity. Excellent re-deployment of capacity because they can.
In another news it mentions they are starting many other international flights.
All in all, expect additional capacity in coming months. Delta airline expects to go back to precovid capacity by end of 2022. (https://www.routesonline.com/news/29/breaking-news/296947/delta-sees-capacity-fully-restored-in-second-half-of-2022/)