Originally Posted by
Wpgjetse
I think it's more about matching the competition without lossing money.
Rouge hard product is identical to all new-spec or refurbished mainline aircraft. All ground services are shared with mainline. FF status accumulation and privileges are the same. Meal service is the same as mainline (for the same class of service). Excluding the absence of international business class, the product offering to the customer is the same. But Rouge has a much lower cost structure because it frees AC from its legacy labour cost. That's really the innovation of Rouge: finding a way to offer the same product at a lower cost. From the customer's perspective, there is no difference between 777 TATL PY and Premium Rouge TATL PY except the funny hats and the fact that the staff on Rouge make less than half of what a mainline FA does.
It would be to AC's advantage to add business class to Rouge and slowly shift its entire operation over to the lower cost structure. Of course, the current agreements with legacy unions won't allow that. But AC will Rouge everything that they can. Why wouldn't they? It's good business.
For my part, I'm not super excited about flying with a cabin crew that has a 2nd or 3rd job to pay the rent. It'd be a sad day if all mainline carriers end up racing to the bottom like this.