Air Canada Plans New Low Cost Carrier

By Bizclik Editor

Air Canada is drawing up a business plan to create a low cost carrier (LCC) to fly to vacation spots such as Europe, Mexico, and the Caribbean. This LCC would be in addition to Air Canada’s major routes and its continuation based upon its profitability in the competitive market.

Air Canada already has Air Canada Vacations which caters to middle and higher end travelers to vacation spots. This LCC would fill the lower and middle class leisure travelling needs.  It would also be Air Canada’s latest strike in its fight against lower cost rival companies such as Westjet Airlines Ltd  and Air Transat whose growth has been eating into Air Canada’s market shares in the vacation routes. Currently Air Transat and Sunwing Travel Group are the number one and two leaders in the Canadian tour operator market.

A tentative agreement was reached with the Air Canada Pilots Association (ACPA) as the fact sheet and new labour contract for Air Canada’s LCC is being reviewed. The ACPA will vote on the LCC between April 15 and the 27th.

The LCC fleet will be made up of 30 Airbus and 20 Boeing planes. These planes would have a capacity of up to 213 passengers and would add a “premium economy” class that would take the place of the business class.

READ RELATED CONTENT FROM THE WDM CONTENT NETWORK
*Business Travel: Executive Business Travel Guide: New Orleans

* TSA Body Scanners Get Flagged

* Business Travel: Really?! One Millionth Toronto Passenger Wins Big

*Read the latest Business Review Canada!


The LCC would also create 462 new pilot jobs which would be automatically added to the ACPA. These LCC pilots would create a new pay structure which would be negotiated between Air Canada and the ACPA.

Air Canada is also planning on using the Billy Bishop Toronto City Airport in an effort to further woo leisure passengers.

Air Canada previously launched Tango and Zip, two other low cost carriers, which failed after two years. Hopefully this new LCC will be a flying success for Air Canada.

Share

Featured Articles

People Moves: Pinterest, Amazon, DocuSign, KFC, Walmart Ca.

Following a number of key executive step-downs at Amazon, Pinterest and DocuSign, new executives have been brought on board in this week’s people moves

Microsoft, McDonald’s latest firms to run civil rights audit

Microsoft and McDonald’s join Amazon, Citi, JPMorgan and others in conducting civil rights audits, as investor pressure to achieve racial equity mounts

Deep dive: Investment in carbon capture rises as CO2 spikes

Investment in carbon removal solutions and startups is heating up as fast as the planet, with Temasek and CEMEX Ventures the latest VCs to launch funds

Dialight envisions a safe industrial world with LED lights

Sustainability

Top 10: Tech, cyber, 5G, cloud speakers at TECH LIVE LONDON

Technology & AI

Eight big announcements made at Davos 2022, from ESG to tech

Sustainability