Canada's National Airline Abandons Newfoundland Route
On Tuesday May second, after months of discussions Air Canada announced that it will no longer continue its direct service route between St. John's, Newfoundland and London’s Heathrow airport. The Quebec based, tax payer supported airline claims that the connection is not profitable, however St. John’s airport authority president, Keith Collins, has said that the route is very lucrative.
It is rumored that complaints from passengers traveling to and from the Halifax area, who did not appreciate the stop in St. John’s, may have been a factor in the decision. In addition to this, some have speculated that intensive lobbying by Nova Scotia based interests, eyeing the potential for increased revenues from overseas supply shipments and passengers, played a major role in the decision.
Premier Danny Williams met with Air Canada management several months ago in an effort to convince them to maintain the non-stop flights and has now publicly denounced the airline for not doing so. He say’s he is very disappointed in the decision.
The move by Air Canada has come as a surprise and a disappointment to many, coming as it does at a time when the tourism industry between Newfoundland and Europe is growing fast. Over the last few years the number of Europeans flying into the area for vacation and business has steadily increased and there was an expectation of even further growth going forward. That may now be in jeopardy.
In addition to the tourism industry, the move will impact the province’s growing oil and gas industry. Oil rigs, ships and service vehicles often require parts and supplies from overseas and until now those supplies could generally be gotten overnight. With the departure of Air Canada from the direct European route, those supplies will now need to be de-planed in Halifax and an alternate delivery method found. This is expected to cause delays and additional expense for the companies involved.
Perhaps the hardest hit will be travelers themselves. Those traveling between the two destinations will now need to fly from St. John’s to Halifax, board another flight and double back over the province before heading on to England, with the reverse being true on the opposite leg of the flight. This is likely in increase the cost to travelers, cause unnecessary delays and during inclement weather, may even result in passengers being stuck in the Nova Scotia air terminal rather than making it to the island.
According to Keith Collins, the airport authority, accepts the decision and are pursuing a replacement for Canada’s so called national carrier. The route is a profitable one, the customer base is growing and the potential is great. He expects to have an announcement, perhaps involving a European carrier, very soon.
As many in the province see it, this is simply another case of Air Canada neglecting customer needs and service levels while forcing the flying public to pay additional and unnecessary charges. Many feel that the tactic is nothing new. In fact it’s been said that Air Canada is the only airline in the world that could get away with mistreating their customers the way they do and still survive. This is due in large part to the endless support shown by Canada’s federal government through the vast amount of tax revenue supplied by those same unhappy customers.
27 comments:
The Quebec based, tax payer supported airline
Why do you need to point out that the airline is Quebec-based? How is this relevant?
And how is the airline "tax payer supported"?
Those traveling between the two destinations will now need to fly from St. John’s to Halifax, board another flight and double back over the province before heading on to England,
I'm trying to remember when anyone in Newfoundland complained about people in Labrador having to fly east to St. John's or Deer Lake before flying west to other parts of the country...
I am living in the Middle East, and this is actually quite devasting, not so much for me but for my wife and little baby. I have written to Air Canada and the St. John's Airport Authority about the unnecessary inconvenience the cancellation of the St. John's to Heathrow route will cause. I know many Nova Scotians hate going through St. John's, but inconveniencing us in order to please them is not good business. We should all write to Air Canada and the St. John's Airport Authority to get a St. John's to Europe route. Even once or twice a week would do the trick, and, although Heathrow is most convenient, I would not say no to an alternative city in Europe. We really need to keep a direct route to Europe.
Let's set things straight - Air Canada hasn't been "taxpayer-supported" since 1988 (except in the sense that most of its customers are Canadian taxpayers). In the years after privatizing Air Canada, the government of Canada made far more money from selling off its stake in the airline than it ever put into it as a Crown Corporation.
Furthermore, the federal government has saddled Air Canada with obligations and responsibilities (under the Air Canada Public Participation Act). These obligations include providing service to certain communities regardless of the profitability of the servce, maintaining bilingual service on all its flights and maintaining large bases in cities which otherwise wouldn't warrant such a presence. No other private airline (nor any other private corporation) in Canada faces such a restrictive operating environment. Far from being "taxpayer-supported", Air Canada is hampered by its prior life as a Crown Corp.
If you want to look at taxpayer-supported airlines, take a look at the revenue guarantees that Westjet & Northwest Airlines (an American company) negotiated with the PEI government to introduce service there last year.
As a person who frequently took the Halifax - Heathrow return service in the last two years, I can tell you that the stop for customs in St. John's was a very frustrating aspect of the trip. They simply aren't set up to handle that many passengers at once.
I understand the frustration with losing this route, but Air Canada is a private corporate entity with fiscal responsibilities. If a particular route isn't living up to its revenue expectations, and if that aircraft & crew could be more profitably used elsewhere, then that route has to go.
I sincerely hope that the province is able to attract some other airline to offer this service. If that operation, however, relies on loans, revenue guarantees, discounts on landing fees or fuel surcharges or any other government support, I would hope to hear your opposition to such "taxpayer support" here.
tax payer supported??? Get your facts straight, Besides I think its an even trade off. You lose Europe but you gain Ft. Mcmurray
Who needs facts when you're a Newfoundland nationalist? They live on myths and lies.
*SIGH* Just another chance for Newfies to say poor us.........everyone is against us.
Oh woe is me.
Huh.
The AIRLINE says its not profitable but the hack at the Newfoundland airport says otherwise.
Uh-huh.
Why is it that every Free Market act taken is a slap across your face with a white glove?
Costco loses money on seal oil - they pull it - you bitch.
Air Canada loses money on stopping in St. Johns. They pull the stop - you bitch.
Sometimes it is just about the money and nothing else. Why is that so hard to understand on The Rock?
Somthing happens in Newfoundland- mainlanders bitch.
Its hard to tell the bitches from the bitch.
Funny, no one has mentioned the internation boycott of travel to save seals.
F*&k air CANADA jazz, star alliance, jetz
It's amazing how many people who are not remotely affected by Air Canada's decision have such a strong opinion. My family will be directly affected; my political view are neither here nor there on this issue. I only hope that the St. John's Airport Authority can find another carrier. In addition, I hope that Air Canada will look into alternatives that will satisfy travellers to both Halifax and St. John's. I don't think that is asking too much. What is asking too much is the absurdity of bypassing Newfoundland, getting off the plane in Halifax and then, hopefully, God willing and weather pending, get on yet another plane back east to St. John's before the day is out. I have written to Air Canada and the St. John's Airport Authority about this. I hope others do the same.
Lots of places have to bypass themselves on flights all over the world. It's called a flight plan and it's not a straight line you know.
Grow up....money fuels industry and if it ain't viable then it ain't viable. It's not a plot to screw Newfoundland (believe it or not!)
That's the problem, it IS viable. I have to admit I have never heard anyone defend Air Canada decisions before.
I guess stacking more seats in than can even remotely be considered comfortable, getting rid if little things like complimentary pillows, meals, etc. is all good business too.
The problem here is not the route it is Air Canada itself. They are so money hungry because of their screwed up business model, they have so many vested interests that they are pandering to and they could care less for the public they serve.
I hope they collapse tomorrow and open up the skies for competition from real airlines. If anyone has ever flown on other carriers like Cathay Pacific or Air Singapore and then comes back to tell me air canada is a good airline I will pesonally laugh at them.
I fly business class and quite enjoy the meals and pillows. Plenty of leg room and great service too.
I fly to Europe a little bit and don't mind the side trip to Halifax at all.
anonymous said...
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That's the problem, it IS viable. I have to admit I have never heard anyone defend Air Canada decisions before.
I guess stacking more seats in than can even remotely be considered comfortable, getting rid if little things like complimentary pillows, meals, etc. is all good business too.
The problem here is not the route it is Air Canada itself. They are so money hungry because of their screwed up business model, they have so many vested interests that they are pandering to and they could care less for the public they serve.
I hope they collapse tomorrow and open up the skies for competition from real airlines. If anyone has ever flown on other carriers like Cathay Pacific or Air Singapore and then comes back to tell me air canada is a good airline I will pesonally laugh at them.
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Ahhh... The siren call of the "Airline-know-it-all"
Because you say it's viable, it must be? Do you have the load factor information for this route? Do you know the yield? Perhaps the reason that you haven't heard anyone defend Air Canada's decisions is because your pre-disposed opinion leads you to ignore those contrary positions. I guess you can't make that remark anymore...
As far as comfort, lets talk about Air Canada vs. the charters - 212 seats on a 767 (AC) vs 233 on a 21-ft shorter 757 at a charter airline.
Which vested interests are you talking about? As far as I can see, Air Canada is simply playing the game the same as any other company - if a particular part of the business isn't making money, you reassign those resources where they will make money. The problem is that some Canadians still think Air Canada is an arm of the government and should operate whatever service they want, regardless of the profitability.
I have flown on those other airlines you speak of, and I'll agree that their product is superior to what AC is offering. That said, Air Canada is upgrading the fleet with lay-flat seats, personal video screens at each seat and improved interiors. None of those carriers has had to deal with domestic competition as Air Canada has. They were affected by SARs (as Air Canada was), but suffered little fallout from 9/11. Apples and oranges. Don't see any of them lining up to offer service to Torbay, either.
If you want the service, you have to ensure that the company can make a profit from it.
spoken like a true Air Canada employee. Enjoy your flight.
Fact of the matter is Air Canukistan only changed this route because some Blue Nosers complained about the stop over.
Will do
Sorry....I never worked for Air Canada. It's just common sense!
Nobody can say or do a THING against the wishes of Newfoundland and come out looking good. It's just not possible in a place that thinks that every business decision not in their favour is a reson to cry foul (and moan and groan and say poor us).
There is no plot, but there is Air Canada arrogance. In the past, I knew some employees who seemed to think there was no alternative to them. When you think that way, you can drop a route and make people fly further (and pay more, or, as one AC spokesperson put it, pay a "comparable" rate). The problem is, there is some truth behind their arrogance, at least so far. I mean, what other airline in Canada can compete with Air Canada? In any case, the ball is in our court now. I can only hope that the St. John's Aiport Authority can find an alternative to Air Canada for a St. John's to Europe flight. It would help my family enjoy their flights more and therefore make my life a little easier. In the meantime, it would not hurt to write to Air Canada and the St. John's Airport Authority about this problem.
I see Air Canada has decided to change its plans to cancel this route. I guess they discovered that:
A. Canada doesn't end at Halifax and
B. It only makes sense to leave Canada for England from the closest point to that destination.
Nope they are only putting one flight per week with a smaller plane.
Canada must be stupid IMHO. You would think that they would want all incoming foreigners to have to deboard on and ISLAND where if they were terrorists or a threat to Canada they would be confined to an Island in the sea with little or no population.
This is more than a Air Canukistan issue it also involves the Canadian customs. If it wasn't for the Canadian customs being so slow and under funded in our province maybe the deboarding and clearing of an airplane wouldn't be such a haassle.
Shut the F$%k Up blue Nosers.
First they complained about a study to build a fixed link because they were afraid they would lose all of the drive through traffic now they want to by pass NL because it is an inconvienience to them. Boo F%$kin Hoo whos crying now whos complaining now?
I find it interesting that someone who complains about being called a Newfie is so ready to call Nova Scotians "Blue Nosers".
Oh wait, it's that Newfoundland double standard..... sorry, forgot about that handy little trick.
It only makes sense to leave Canada for England from the closest point to that destination.
It also only makes sense to leave Labrador for the rest of Canada from the closest point to that destination.
However, Newfoundland nationalists want all traffic to and from Labrador to go through a white elephant tunnel under the Strait of Belle Isle, and don't want Labrador to be linked by highway to Quebec.
Why is that?
AAhh but there's the rub Annoy-nomous.
If we can keep the link with Europe, I will be happy.
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