Originally Posted by
Maxx Mazda
AC pulled out of Calgary because the yields here are way too low. I will say one thing they are very good at, is going where the money is. You have AC, WJ, Flair, Lynx, and Sunwing all competing for the same tiny market in Calgary. Better to let WestJet duke it out with the LCC's, while they go after the money elsewhere. You can still get to anywhere in the world on AC, it's just now through one of their hubs. Their overseas flights to Heathrow and Frankfurt will continue daily, year round.
Westjet has always operated on the point to point type of business model, which is great for passenger convenience, but it can often mean you're flying around half empty airplanes everywhere, which is bad for the bottom line. You're seeing a big return in the USA to the "hub and spoke" model of air travel, which was popular for decades due to it's lower operating costs. AC is also returning to this model, especially out of cities like Calgary and Edmonton, where the air travel market isn't as "juicy" as it is elsewhere. Remember, the majority of travelers don't care if there's a connection on their journey, as long as it's $12 cheaper.
In addition to that, it wouldn't surprise me if there was some sort of backroom deal between AC and WJ. Recall, WJ pulled out of the east a few months ago, under the guise of "returning to their roots." Wouldn't be that far fetched to imagine that the two companies each agreed to stay in their respective backyards, in order to keep fares high. They have had a cozy relationship for years.