Would Air Canada be impacted?

A small increase in market share poses no threat

There are some concerns about the increased competition with Air Canada if a daily Emirates service was launched between Dubai and Toronto, concerns which from our perspective are hugely exaggerated. Currently, at Toronto Pearson Airport our share of weekly international departures is 0.1%, while our share of international seat capacity is 0.5%, as opposed to Air Canada who have a 52% share of weekly international departures and 48% share of international seat capacity. With a daily service, Emirates’ share will increase marginally to just 0.3% and 1.1% respectively. These small increases are not at a level which would suggest additional Emirates flights pose a threat to Air Canada.

  • In November 2015, Air Canada commenced a direct service from Toronto to Dubai, operating three times a week; as well as four weekly direct services from Toronto to Delhi. There is no direct competitive overlap between Emirates and Air Canada in the Middle East, Africa or the South Asian Subcontinent since Air Canada does not operate services to any point in these regions apart from Dubai and Delhi.
  • In relation to claims that we are reliant on third country traffic, our connecting traffic only complements the substantial and fast-growing Canada-UAE origin and destination traffic on our Dubai-Toronto flights. In carrying this connecting traffic, we also provide enhanced access between Canada and various regions of the world which are underserved or not served at all from Canada. Connecting passengers today represent a key part of the overall traffic mix for all network carriers – including Air Canada and its Star Alliance partners.
  • To suggest that the commercial interests of Air Canada’s partners within Star Alliance (with its 28 member airlines, annual passengers of over 641.10 million, a fleet of over 4,700 aircraft and a 61% share of weekly international departures at Toronto Pearson Airport) would be seriously impacted by a daily Emirates service between Dubai and Toronto lacks credibility.
  • We always look to generate new demand rather than redistribute existing traffic. It is not our policy to engage in ‘capacity dumping’ or ‘predatory pricing’ – we price our product competitively in all markets.