FlyerTalk Forums - View Single Post - Air Canada to launch cut-rate vacation carrier

May 5, 2011, 3:09 pm

#59

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http://business.financialpost.com/20...-cost-carrier/

Calin Rovinescu, Air Canada chief executive, acknowledged Thursday that winning support from the airline’s employees is pivotal for his plans to launch a new subsidiary low-cost carrier.

Air Canada said last month it planned to launch the new carrier within a year, which would allow it to access new leisure markets its current cost structure prevents it from turning a profit on — like Amsterdam, Dublin, Casablanca, and sun destinations during summer months. It aims to create a fleet of up to 50 767s and A319s drawing primarily from the mainline’s existing jets.

Mr. Rovinesu had said in an interview with the Financial Post last month approval from the unions may not be necessary to go ahead plan, though that was his preferred route.

But he admitted Thursday on a conference call that Air Canada may not be able to go ahead with the deal unless its pilots sign off on it, including the low cost carrier’s [LCC] lower wage and benefits.