this post was submitted on 05 Jul 2023
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If only Canada’s largest and oldest airline could have predicted Canada’s annual high travel periods…
Maybe yet another cash infusion from the government will help them remember.
The privatization of Air Canada was a mistake
In fact, the privatization of most Canadian crown corporations was a mistake
From a government perspective, connecting remote areas has economic advantages through improved trade, better access to services, and eventually increased economic growth/more tax revenue. For private corporations, none of these advantages materialize.
That's why China is able to afford a trillion dollars of debt to build HSR when nobody else can: it allows them to push economic growth away from tier 1 cities (Beijing, Shanghai, Shenzhen, Guangzhou) and towards tier 2 and tier 3 cities.
Yes, they should just pay to have extra planes sitting in a hanger all year that they only take out for high travel periods /s
Maybe they shouldn't sell tickets to seats on planes that don't exist or aren't in service.
That aside, many companies are now trying out the latest management craze... 'Run to fail'... That is, running equipment until it fails (and fucks everything up) is cheaper than doing regular maintenance. They don't care about the pressure and stress it puts on employees or customers, they just care that it saves a couple bucks.
JetBlue doesn't overbook and they have similar load factors to the big US legacy carriers, so it's clearly possible to not overbook
They also don't care that it eventually runs the company in the ground because they'll be gone when the thing finally breaks.
Short term gains for long-term failure is a trade they'll make without thinking twice.
Do you not understand that the supply (number of planes) is constant throughout the year, while the demand (number of fliers) fluctuates? If the supply enough planes for everyone to fly at peak times there's going to be tooons of empty seats throughout the rest of the year. They'd then need to raise everyone's ticket prices to pay for those extra empty planes, and people just aren't willing to pay the extra price for the convenience.
Please explain to us why they are selling so many more seats than they have available.
Because often people don't show up. If an airline only sold the exact number of seats on ever plane, their tickets would be more expensive, and people wouldn't buy them.