Thursday, April 27, 2006
Marc attributed the recent success (2005 net profit $258 million) of post re-structuring Air Canada's to a number of key initiatives:
- Unified technology based
- Fare simplicity
- Branded fares
All of this combined has lead to more passengers choosing Air Canada over the competition. These passengers are becoming the brand. Aeroplan could not succeed to the same level because choosing the alternatives was easier. People cared more about getting to where they were going than with whom.
Now, Air Canada succeeded in getting customers to care more about which carrier they use ALL THE TIME rather than which carrier they use each time. Basically, it is now simpler to use Air Canada all the time. They have dramatically reduced the reasons to comparative shop.
Unfortunately Marc had to run to catch a flight (his departure was on time) and I couldn't ask the questions I had noted down:
- With the multi-trip passes - how much additional revenue is anticipated for unused coupons?
- With pre-paid travel, how does Air Canada protect themselves against unexpected large fuel cost increases?
- Will Richard Branson bring Virgin airlines to Canada? How will Air Canada respond?
- What is the plan for an Avian flu epidemic?