Quote:
Originally Posted by CaptainCrunch
I think your sorely underestimating how much you would have to pay westjet to change their schedule like that.
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Westjet has 168 seats on the 737-800. A daily flight would produce 168×365×2 seats to sell per year, or 122,640.
Great circle mapper has yyc-iad as 1952 miles. Westjet has a revenue per available seat mile of 14 cents per their 2016 annual report. Longer flights are generally lower, and presumably IAD could replace a flight that was below the average (it seems likely that some of their current flights are above average and some below). Assume they'd want average revenue.
122,640 seats/year × 1952 miles/seat × $0.14/mile comes to $35.5 MM
Airlines are a thin margin business, getting 5% of revenue guaranteed would make a huge difference. Plus as someone mentioned they would get all the ticket sales from new Amazon purchases as well.
AC might be better, because they could tie in with United in IAD and sell connections. Get guaranteed revenue from the deal, sell non stop tickets to business travellers, and sell connections to Florida/Caribbean to fill the plane.