Saturday, February 17, 2007

Air Canada drops Indian route

Air Canada has made a "lousy decision" by cutting its flights to India, says the president of the Canada-India Business Council.
"This was a big bridge between the two countries that has been snapped," Kam Rathee said in response to the airline's decision to cancel daily fights to New Delhi starting on May 1.
The move was economic, based on problems filling the planes during the slow season — the summer — while stiff competition in the winter drives down prices and cuts the returns, said spokesman Peter Fitzpatrick.
If business to India was strong, Air Canada would add planes, he added.
The aircraft will be put on the China route, where demand is stronger.
But Rathee, who travels frequently to India, said even if Air Canada was losing money on the flights now, it should be looking to the future. India's economy is booming and makes sense for Canada's flagship carrier to maintain a link into the country.
16/02/07 CBC News/CBC Manitoba, Canada
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