Toronto Hamilton Airport

Air Canada touts continuing transformation as 2Q2012 losses widen

Two major elements driving Air Canada’s 2Q2012 negative financial results – labour strife and pressure created by the sudden shutdown of its major maintenance provider Aveos – are the areas where the carrier sees prime opportunities in the future as new labour agreements allow for the creation of a new low cost carrier and negotiations with new suppliers ensure a substantial improvement in the costs of airframe maintenance.

Air Canada management during the last year has often cited the transformation that needs to occur at the carrier in order for the airline to compete in the new competitive environment ushered in by LCCs and spiking fuel prices. But in the short term the company still must deal with disgruntled employees and increasing competitive pressure that will not pause as Air Canada works to complete its transformation.

During 2Q2012 Air Canada widened its losses year-over-year by CAD50 million (USD50.2 million) to CAD96 million (USD96.4 million), while net losses for 1H2012 expanded by CAD241 million (USD242 million) to CAD306 million (USD307 million).

UK’s Newcastle and Cardiff airports seek long haul flights

Once it was short haul services that were in demand from UK’s regional airports, now it seems that the desire to avoid travelling via a hub has spread to the mid to long haul arena, as difficult as it may be to justify some of the proposed services. The latest airports to investigate the level of demand for long haul flights are Newcastle and Cardiff.

US border ‘low cost’ airport attracts Canadian passengers

Air passengers from Canada’s Ontario province are increasingly heading for Buffalo Niagara International Airport across the border in New York State, USA. Price is the key, in addition to convenience. Buffalo has been developing its low cost offer at the expense of Canadian airports like Toronto, and Hamilton, which is in itself a low cost facility. But experience elsewhere in the world indicates that some low cost airports have run out of steam.