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Author Topic: Dumping?  (Read 1160 times)

Offline JonnyAngel

  • Members
  • Posts: 179
Dumping?
« on: December 22, 2010, 06:01:59 PM »
Okay, I'm not gonna point any fingers - yet.

But I wanted some more clarity from anyone who knows, on the rules on seat dumping. A competitor of mine is playing a very slick trick. There are three other airlines supplying a route, yet their airline is supplying just under the 200% rule that would be considered dumping (I'm estimating about 150/160%). Slick trick, because they're clearly supplying way more than the capacity of the route; and are sitting on a ton of cash, so can afford to kill the rest of us operating out of YVR on a slow bleed and wait for us to die.

So fair, or unfair, and, more importantly, how does one fight back?  :P

Offline Sigma

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  • Posts: 1920
Re: Dumping?
« Reply #1 on: December 22, 2010, 06:09:51 PM »
It's perfectly within the rules.

The rule is 200% each.  With 3 other competitors you could expect to see as much as 800% of demand supplied if everyone did their allotment.

But there's absolutely nothing you can do to fight back if they are much larger than you as you say.

GDK

  • Former member
Re: Dumping?
« Reply #2 on: December 23, 2010, 10:58:55 PM »
To fight back, use smaller plane with higher frequency but only 40 flights allowed daily. In DOTM, I got a route having 750% seats from 3 players, I changed to the 50 seats Fokker and won the market share.

Offline JonnyAngel

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  • Posts: 179
Re: Dumping?
« Reply #3 on: December 24, 2010, 09:59:52 PM »
Thanks GDK,

That's what I was thinking of doing actually. I will not be put out of business (unless its by my own mistakes  ;D)


Offline Sigma

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  • Posts: 1920
Re: Dumping?
« Reply #4 on: December 25, 2010, 12:48:02 AM »
That might win you the marketshare, but if he's that much bigger than you than he's not going to care how much he's losing.  Marketshare doesn't make you money.  He'll either be content with his continuing losses or he may even do the same thing back to you, in which case you'd be in a worse position than you were to start.

nicksabatino

  • Former member
Re: Dumping?
« Reply #5 on: December 27, 2010, 04:39:59 AM »
Which route is it that you are concerned about?

EDIT:
Maybe YYC-YVR? You seem to be filling up your Dash-8s and CRJs based on the market share.

This is a short, high capacity route that fills in the gaps of schedules with >2000nm domestic routes. Nothing sinister. Also, there used to be a lot more competition on this route.
« Last Edit: December 27, 2010, 04:45:34 AM by nicksabatino »

Offline JonnyAngel

  • Members
  • Posts: 179
Re: Dumping?
« Reply #6 on: December 27, 2010, 01:30:07 PM »
Mmmmmm....

Well I am only filling up my Dash's and Q400s because I switched to them after you waded in with that interminable supply of T204s of yours. Which is the only reason I'm still in the game. Canada Airways bk'd after you came into YVR and started running those things here there and everywhere. I was just paying more attention and was able to react in time... :laugh:

 

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