Source: Vancouver Sun, The CEO of Air Canada launched a blistering attack on recent efforts by Emirates Airlines to expand its services to Canada, saying the impact of allowing the Dubai-based airline to increase its service to Toronto and start flying to Calgary and Vancouver and would be “devastating.”
Speaking publicly for the first time on the topic, Calin Rovinescu said that such an entry by Emirates would eventually diminish direct flights to Canada and “have the effect of severely damaging our hubs in Canada and our network in Europe and elsewhere.”
“What Emirates wants to do is flood the Canadian market with capacity. Its strategy is to scoop up travelers going elsewhere in the world and funnel them through Dubai, further strengthening Dubai as a global flow hub,” he said.
The Campbell government and YVR have been in favour of Emirates’ lobbying effort, saying it’s in line with their desire for Ottawa to allow freer skies that would lead to greater travel and trade. Greater access by foreign airlines is a cornerstone of B.C.’s Asia-Pacific gateway strategy.
Two weeks ago, Emirates unveiled a study that predicted economic benefits to Canada if it is allowed to expand, including $480 million of new business and almost 3,000 jobs. Rovinescu, however, described these projections as “the stuff of fairy tales” and “subterfuge.” Further, he slammed attempts by Emirates to tie its campaign to “military bases necessary for our country’s operation in Afghanistan.”
“While its argument may be seductive, what Emirates’ strategy will do is constrain the growth of Canadian airports by turning them from hubs into stubs at the end of a spoke that leads only to Emirates’ hub in Dubai,” said Rovinescu. “Sure, you will still be able to get to anywhere from Vancouver. But you will have to get there through Dubai.”
Rovinescu told a Vancouver Board of Trade luncheon that as Vancouver tries to build itself as an Asian hub, the arrival of Emirates could significantly hurt these plans. With the awarding of approved destination status to Canada from China and the growth of the intra-Asian airline market, Air Canada “will look to capture a greater share of the Asia to North America market,” he said. It plans to increase total capacity to Vancouver by 3.3 per cent in July, including a 26 per cent increase to countries in the Pacific Rim. For example, in June, it will start daily flights from Vancouver to Beijing and Shanghai, up from three weekly to Beijing and four to Shanghai.
