And where does AC's plans for an LCC come in?
As per the very public statements that AC wishes to launch an LCC, I point to the proposal (I am copying from the CAPA newsletter);
Air Canada’s proposed new LCC
•A fleet of 50 Boeing 767s and A319s, “mostly” from the existing fleet
• A differentiated product, separate from the mainline carrier, somewhat similar to Qantas’ Jetstar
•To operate to new international leisure markets with lower yield profiles, “such as Amsterdam, Dublin, Casablanca and sun destinations in the winter”.
Air Canada has stated in the past that it also wishes to expand into South America, a part of of its network that would immediately benefit from increased destinations and flights. South America would not cannabilize Star Alliance partners and would instead draw PAX from One World.
Should Air Canada's statements be ignored? All the gung ho talk of increased flights to India sidesteps the fact that India has a very strong position on protecting its market. Is India really going to roll out the welcome mat for increased competition to its airlines which are bleeding and in a precarious state?
Why would Air canada want to expand into a market which is extremely expensive and a loss generator for an airline?
Still not willing to consider the undesirability of India? Read this;
http://www.bbc.co.uk/news/world-asia-india-17950561
India is not the most attractive market for expansion.