Qatar Airways CEO Akbar Al Baker confirmed the carrier is looking to expand its presence in Canada with additional capacity. The carrier launched Doha-Montreal service last week, its first destination in Canada. Over the next few months, Qatar Airways plans to add the following services from Doha:
Qatar Airways CEO wants more capacity to Canada
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Qatar Airways and Vueling to codeshare as LCC partnerships establish new models
Partnerships of any kind between Europe's principal LCCs and full service airlines are rare. The new codeshare between Qatar Airways and Vueling builds on the interline deal signed between the two in Oct-2014. Moreover, it marks a further deepening of the relationship between the Doha-based super connector and IAG, of which it now owns 20%. Vueling joins IAG-owned airline British Airways in codesharing with Qatar Airways, but the new agreement is more extensive.
Vueling is now carrying Qatar Airways' QR code on 67 European routes. These routes are from/to Barcelona El Prat and Rome Fiumicino, which are Vueling's two biggest bases, and both served twice daily by Qatar Airways from Doha. The accord significantly expands Qatar's offline network, but the value of this and two-stop connections is difficult to gauge.
Air Canada continues its strategy of higher capacity growth to fuel rapid international growth
Air Canada’s yield and passenger unit revenues during 3Q2016 remained broadly in line with those of the previous quarter, which is a different outcome from the results posted by many of its North American peers. However its top line revenues grew nearly 11%, and its costs fell at a lower rate than those of many other North American airlines.
The airline’s yields and passenger unit revenues began falling earlier than those of most other airlines based in North America, and Air Canada’s recurring explanation is that lower yields and unit revenues are an expected byproduct of changes in its business model – the creation of its low cost unit rouge, a higher mix of lower-yielding leisure travellers, and longer average stage lengths. As yields and unit revenues continue to decline, Air Canada continues to deliver on its own established financial goals for EBITDAR, ROIC and leverage ratios.
Air Canada’s focus has been on international expansion during the past few years, and that trend will continue for the foreseeable future. In 2017 the airline is expecting nine Boeing 787s scheduled for delivery and its capacity is likely to mirror 2016’s double-digit growth – given that the company will accept delivery of nine new widebodies this year. The bulk of its growth will again be directed to international routes as several new long haul markets are scheduled to come online in 2017.