B8 Terrace Review — Wednesday, May 29, 1991 Service changes, fa Sid Fattedad, Holly Olson of CAI: Load factors down, fuel prices up. by Betty Barton Sid Fattedad, Canadian Airlines International (CAI) vice-president for Western Canada, spoke to the Terrace and District Chamber of Commerce members last week, In his opening remarks, Fattedad said, "You need to know that the carrier serving your community knows where it’s going. We need to know where you’re going." In 1990, CAI allocated 109,000 seats for passengers out of Terrace and Prince Rupert, 55,000 of those out of the Terrace/Kitimat airport. The company registered a 50 per- cent load factor for the year. In the first quarter of this year, they saw a 28 percent decrease in load fac- tor out of Terrace compared to the same period in 1990. Overall, Fattedad said, air travel out of Terrace has dropped by a third since last year. To operate a Boeing 737, he explained, costs $5,500 per hour, so reduction in fares is an unlikely prospect. Fares ate based on the economics of ‘operating into a community or area. There are no current plans to change service (either expand east- west Flights or delete flights) to Terrace. "We're always trying to find the right mix", he added. Fattedad was asked what CAI’s feeling is about Central Mountain Air starting an east-west service Terrace to Edmonton. He responded that nothing suggests they (CAI) should get into an east- west route. They don't regard regional carriers as threats. The ‘Where To Find It’ we om re reductions unlikely for CAI more service is offered to each community and the more subse- quent new markets develop, the better for CAI. He explained that the airline industry is in dire financial straits due to increases in fuel prices, the Gulf war and the recession. Cana- dian Airlines International had their largest loss last year, and their operating loss for the first quarter of 1991 was $63 million. After a recession, he explained, there’s at least a six-month time lag before airline revenues improve. He talked about "Made in Canada problems" including defi- cits, high taxes and higher prices, all of which combine to give U.S. competitors a 15 percent cost advantage over CAI. Still, CAI has a 15 percent cost advantage over Air Canada: CAI flies to five continents and provides more international service to customers than Air Canada. Open Skies negotiations are currently under way with the Fed- eral governments of Canada and ihe U.S. to allow the airlines freer movement between the two coun- tries. Fattedad explained that Open Skies would allow Canadian air carriers greater access to U.S. air- port gates. "As long as we get the right airport slots (times) in the US., we'll be well off", Fattedad said. Access to the U.S. market is a huge factor in gaining market share. Historically, the Canadian government denied CAI access to these routes by awarding the US. routes to Air Canada only. Fattedad expects redress against taxes to be an issue for Canadian ‘carriers in the negotiations: if CAI paid the same level of taxes and charges as U.S. carriers flying in the U.S., they would have shown a $100 million profit Jast year. CAI would like to see Open Skies, Open Borders similar to the Euro- pean model scheduled for 1992. The Open Skies negotiations pro- pose to allow open skies for air- planes, not for people. Fattedad went on to say that Canadian Airlines International is investing for the future with a three- to five-year service and quality plan. "We're empowering our employees by tripling our traning time, and automating to improve efficiency."’ The possibility of a microwave landing system at Terrace-Kitimat Airport to improve the frequency, _ of landings was raised. Canadian Airlines Terrace manager Terry Morris responded by saying that it’s a great system, but it’s of no vatue if it only exists in one air- port. The Federal. government, in their wisdom, is spreading the system throughout the . country, rather than regionalizing it. Fattedad concluded, “Nothing will compromise a safe operation for us." Etonic golf shoes mMany sale items Clubs ‘n’ to start your summer off on the right course at the SKEENA VALLEY GOLF AND COUNTRY CLUB PRO SHOP clothes MWe have a great selection of clubs, priced from $199 to $689 mNew clothing arrivals: Jackets, shirts, sweaters, hats and accessories OPEN SEVEN DAYS A WEEK, 7:30 A.M. TIL DARK 635-2542 635-3929 COLLISION REPAIR AND PAINT CENTER —_/} V Norm’s Auto Refinishing Ltd. 4630 KEITH, TERRACE FAX: 635-3081 3514 King Ave. Terrace, B.C. 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