AUGUST 2014
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bust and the increased activity in mergers as
airlines try to consolidate and reduce competi-
tion.
“If you look at Canada, being a major import-
er versus an exporter, we’re definitely faced
with an overcapacity situation in the market,”
said Lawrence, who served as National Sales &
Marketing Manager for the privately run airline
Wardair Canada from 1977 to 1989. “Our cur-
rent capacity exceeds current market demand
and as airlines battle for market share, yields
continue to erode to the benefit of the ship-
per. However this erosion in yield has certainly
not improved exports as we continue to see
exports and manufacturing moving to other
countries to remain competitive.
Lawrence speaks in clear and direct language
about this topic. To him, this means that it is
cheaper to ship now than it was 10 years ago
which should be helping air exports.
Lawrence explains that most shippers are
able to use this to their advantage and are
therefore able to get lower pricing. However
this tends to have an adverse effect on the air-
lines, as this can drive pricing down and not
