Air Canada Plans New Low Cost Carrier
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.
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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.