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Air Canada to launch cut-rate vacation carrier

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Air Canada to launch cut-rate vacation carrier

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Old Apr 12, 2011, 8:27 am
  #16  
 
Join Date: Dec 2005
Location: YWG
Programs: AC SE100, SPG Plat, Visa Inf Priv
Posts: 509
Originally Posted by airbus320
Is AC planning to purchase more used 767s?
I heard they were looking at HA B763s. There will be 8-10 of them available over the next couple of years as they take delivery of A332s.

This concept is interesting. Hopefully they will be able to keep certain hard product elements like AVOD (in all classes) and make it consistent across the fleet - need to be competitive with WS. I don't mind J (Y+) at 42" for a 6 hour flight (e.g. YVR-OGG or YYZ-DUB), in fact this is how the old and new HA birds are configured and it works for them. My only concern is when AC charges a full J/F fare and you end up with a highly inferior product such as one of the 3 Amigos.

This will be interesting to follow.
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Old Apr 12, 2011, 8:28 am
  #17  
 
Join Date: Jun 2004
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Originally Posted by fin 645
AC had the right idea with Tango, but for whatever reason were not able to make it work. Qantas has been very successful with Jetstar, and right now that division is very profitable while mainline QF is not. (And of course the most profitable QF division is its FF plan.)
TED didn't work either on united.

I think part of the issue is they are too closely linked. I remember an issue where people would try and swap from a Tango plane to a mainline plane, which was a huge issue. Add to that their horrible gate placement in T3 at YYZ, lack of kiosks at the time, plane swaps (which was a good thing). made it more trouble than it was worth I think.

I think the Tango fare serves AC quite well rather than a whole plane. It looks like they are going after the Canjet/Transat's of the world than re-creating the Tango/Zip brand
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Old Apr 12, 2011, 9:43 am
  #18  
 
Join Date: Jul 2008
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Obviously, the most important question is whether flights on the new carrier earn status miles.
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Old Apr 12, 2011, 11:02 am
  #19  
 
Join Date: Sep 2008
Location: Qc
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Originally Posted by tcook052
Maybe they will call it zip! or Tango.
Originally Posted by Simon
...or Canad>an.
ahaha!
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Old Apr 12, 2011, 11:12 am
  #20  
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Originally Posted by tcook052
It doesn't apparently (affect ACV), though it's mentioned briefly in the article.
I think ACV is central to this strategy. ACV has traditionally been somewhat higher priced at least in part because AC's CASM was higher (fewer seats on aircraft due to J and higher wages). You can bet most ACV flights will transition to this new lower cost carrier if/when it gets off the ground. I predict it will mean the end of $300 buy-ups for J on many vacations to the Caribbean.

Originally Posted by tcook052
Will this new AC LCC go up against Jazz on some routes?
I'm sure it will (and AC already does). Remember they are two separate companies now. Not disimilar to how regional carriers in the US fly for various larger carriers.
The Lev is offline  
Old Apr 12, 2011, 11:13 am
  #21  
 
Join Date: Oct 2009
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The new AC LCC is called Tango Plus, just to maximize confusion and in tribute to its failed Tango roots.
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Old Apr 12, 2011, 11:15 am
  #22  
 
Join Date: Dec 2007
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Originally Posted by bizaro86
Obviously, the most important question is whether flights on the new carrier earn status miles.
If one could accrue status miles on the LCC, it would call into question the pricing structure of T and T+ fares.
RCyyz is offline  
Old Apr 12, 2011, 12:02 pm
  #23  
 
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Location: PHL, NYC, DC
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or the 'revived' Tango International
global happy traveller is offline  
Old Apr 12, 2011, 12:06 pm
  #24  
 
Join Date: Mar 2008
Location: Toronto, Canada
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I'm already stuck on one of the 319 señoritas with no avod and J so I'm getting a preview of the new strategy! Whoooo!

I can only hope they move this beast to another route (from YYZ-CUN + return - Saturdays).
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Old Apr 12, 2011, 1:31 pm
  #25  
 
Join Date: Dec 2002
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What I've heard....
The pilots have to agree to this. YYZ crews aren't in favour. It is expected that is where the brunt of the low wage airline will end up.
Low cost pay will be, one level below what a mainline crew makes.
ie:767 low cost will make what a mainline 320 pilot makes.

Airlines just don't learn. There has yet to be a succesful version of this idea.
tracon is offline  
Old Apr 12, 2011, 3:13 pm
  #26  
 
Join Date: Sep 2005
Posts: 84
I am sure the unions wont allow this again with 2 tier hiring....But maybe so.
AC did have luck in screwing over maintenance.

What color planes are in this year...Maybe a nice forest green or taupe.
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Old Apr 12, 2011, 3:23 pm
  #27  
 
Join Date: Jan 2008
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I have never seen a company that never learns from it's mistakes, as often as this one. Was watching BNN the other night and one of the crack analysts receives a call from some guy asking whether or not he should bey ACE ( Air Canada ) shares.
The analyst almost laughed, before giving a dozen reasons why airlines in general and ACE specifically make unattractive buys. Had this been announced then, he would have had one more. There is a reason AC trades where it does. He did say the bonds make an attractive risk when airlines go bust. If your smart he said you can make money on the restructuring-Robert did.
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Old Apr 12, 2011, 4:27 pm
  #28  
 
Join Date: May 2004
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Originally Posted by bizaro86
Obviously, the most important question is whether flights on the new carrier earn status miles.
An even more important question is whether one will be able to use Aeroplan miles on the new carrier. If Air Canada replaces AC flights to some sun destinations with the new carrier's flights, current AP customers will want to be able to redeem with the new carrier.
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Old Apr 12, 2011, 4:42 pm
  #29  
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Originally Posted by tracon
What I've heard....
The pilots have to agree to this. YYZ crews aren't in favour. It is expected that is where the brunt of the low wage airline will end up.
Low cost pay will be, one level below what a mainline crew makes.
ie:767 low cost will make what a mainline 320 pilot makes.

Airlines just don't learn. There has yet to be a succesful version of this idea.
That's going to be the deal breaker, along with AC seeking a two-tier pension plan. Don't hold your breath waiting for AC pilots to ratify that contract.
LeSabre74 is offline  
Old Apr 12, 2011, 5:08 pm
  #30  
 
Join Date: Dec 2010
Location: Victoria, BC, Canada
Programs: AC A50K
Posts: 339
Horrible Idea

I hope this is some sort of a joke.
Is there anything wrong with the current AC that a new division will fix? (yes, there are some small issues, odd pricing points and some lost luggage)

How about AC simply spend the effort that it would waste on this new (and likely temporary) airline on further improving it's self.

If I go on a vacation, I would rather fly on a top quality airline. If I wanted a sketchy airline I would fly transat or something similar.
km101 is offline  


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