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From Financial Post:

Air Canada targets new leisure destinations with low-cost carrier Rouge

Air Canada will unveil its new low-cost carrier and leisure group Tuesday under a new brand, Rouge, targeting several new leisure destinations in Europe and the Caribbean starting in July, sources familiar with the plan have said.

The initial details about Rouge were the first to emerge in what is a key part of Air Canada’s strategy to lower its costs and expand in the years ahead. The low-cost carrier, coupled with the airline’s new 787 Dreamliners, is expected to have a dramatic impact on the competitiveness of the airline’s fleet.

While not all the details were known ahead of the launch of the new brand Tuesday at an event in Toronto, Air Canada is said to be targeting several new destinations in Italy, Scotland, Greece, Cuba, the Dominican Republic, Costa Rica and Jamaica.

It is believed the carrier will launch in the East, flying from Toronto and Montreal, and that only one of the destinations in those countries will be an existing one, sources said.