Air Canada to launch cut-rate vacation carrier
Nov 4, 2011, 11:01 pm
#121
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And BTW, WN pays their mechanics and pilots more than their legacy colleagues. WS, although not very LCC, pays their mechanics a better wage than AC, at least right now.
Nov 5, 2011, 8:49 am
#123
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I don't know if southwest's wages are much different than legacy carriers-I have heard that their pilots are well paid.
Nov 5, 2011, 12:44 pm
#124
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The Low Cost Carrier distinction has been turned on its head. Outside of Spirit and EasyJet, Allegient . . . I'm not sure what is/is not LCC these days
Nov 5, 2011, 2:01 pm
#125
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Nov 8, 2011, 12:41 pm
#126
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Unions ground Air Canada's low-cost carrier plan
http://ca.reuters.com/article/busine...BrandChannel=0
The new business, proposed last spring and initially tipped for a mid 2012 start, would compete on low-yield, high-volume international destinations like Amsterdam, Dublin and Nice, as well as southern vacation spots.
But Rovinescu has said repeatedly that he will not go ahead unless he can ensure the new business will be genuinely low-cost. For that, he will need concessions on wages or benefits from Air Canada's unions.
Established airlines have often sought to launch separate brands to compete with low-cost entrants like Southwest Airlines or EasyJet. The newer arrivals operate with fewer workers, lower pay or a single type of plane, reducing maintenance costs.
But Air Canada, whose previous low-cost airlines were quickly folded into the mainline carrier, has struggled to persuade its four major unions to support its plan.
A new collective agreement for flight attendants includes no mention of the low-cost carrier. The attendants rejected an earlier contract that included provisions on the new carrier.
The new business, proposed last spring and initially tipped for a mid 2012 start, would compete on low-yield, high-volume international destinations like Amsterdam, Dublin and Nice, as well as southern vacation spots.
But Rovinescu has said repeatedly that he will not go ahead unless he can ensure the new business will be genuinely low-cost. For that, he will need concessions on wages or benefits from Air Canada's unions.
Established airlines have often sought to launch separate brands to compete with low-cost entrants like Southwest Airlines or EasyJet. The newer arrivals operate with fewer workers, lower pay or a single type of plane, reducing maintenance costs.
But Air Canada, whose previous low-cost airlines were quickly folded into the mainline carrier, has struggled to persuade its four major unions to support its plan.
A new collective agreement for flight attendants includes no mention of the low-cost carrier. The attendants rejected an earlier contract that included provisions on the new carrier.
Jul 31, 2012, 11:20 am
#127
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This seemed the msot obvious thread to continue the discussion about the new AC LCC even though the matter was settled in the pilot's arbitration decision.
http://business.financialpost.com/20...n-arbitration/
Mr. Rovinescu said putting the acrimonious labour talks behind Air Canada would allow the company to turn its attention towards completing its transformation into a “solidly profitable airline.”
Part of those efforts will likely now include the launch of a new low-cost carrier [LCC], after several changes were made to the so-called scoping clauses in the new contract.
The new LCC, management has argued, would allow Air Canada to compete more effectively against the likes of WestJet Airlines Ltd. and Air Transat by introducing lower wages and benefits for the carrier’s employees.
“I accept that Air Canada needs to establish an LCC to ensure its competitive future,” Mr. Stanley said in his decision.
The new contract also allows Air Canada to remove up to 50 of its Embraer regional jets from the fleet and up to 60 of its Airbus A320s.
Thirty of those Airbus could be transferred to the new LCC, which may eventually operate with fleet of 50 aircraft, including 20 Boeing 767s when Air Canada takes its new 787s late in 2014.
But while it allows for employment security for the Embraer pilots, there are no such guarantees for the lost A320s, the union argues.
It also allows for more competition in the number of feeder airlines Air Canada can outsource to, and allows for 60 new medium-sized jets of 76 seats or less to be operated.
http://business.financialpost.com/20...n-arbitration/
Mr. Rovinescu said putting the acrimonious labour talks behind Air Canada would allow the company to turn its attention towards completing its transformation into a “solidly profitable airline.”
Part of those efforts will likely now include the launch of a new low-cost carrier [LCC], after several changes were made to the so-called scoping clauses in the new contract.
The new LCC, management has argued, would allow Air Canada to compete more effectively against the likes of WestJet Airlines Ltd. and Air Transat by introducing lower wages and benefits for the carrier’s employees.
“I accept that Air Canada needs to establish an LCC to ensure its competitive future,” Mr. Stanley said in his decision.
The new contract also allows Air Canada to remove up to 50 of its Embraer regional jets from the fleet and up to 60 of its Airbus A320s.
Thirty of those Airbus could be transferred to the new LCC, which may eventually operate with fleet of 50 aircraft, including 20 Boeing 767s when Air Canada takes its new 787s late in 2014.
But while it allows for employment security for the Embraer pilots, there are no such guarantees for the lost A320s, the union argues.
It also allows for more competition in the number of feeder airlines Air Canada can outsource to, and allows for 60 new medium-sized jets of 76 seats or less to be operated.
Jul 31, 2012, 11:50 am
#128
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I thought Air Canada vacations was the LCC? Oh BTW, since ACV took over Cuba flights, does that mean a meal will be served to all on these planes?
Jul 31, 2012, 2:24 pm
#129
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maybe they will bring back Tango airlines 
Jul 31, 2012, 8:43 pm
#130
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It seems we're talking about A319s (not A320). If so, that would leave room for the CSeries at mainline...
About the additional 76 seats jets, Jazz might still have a say at Pluna's CRJ900s...(and get the '705 cabin in it)
About the additional 76 seats jets, Jazz might still have a say at Pluna's CRJ900s...(and get the '705 cabin in it)
Last edited by YUL; Jul 31, 2012 at 8:56 pm
Aug 1, 2012, 6:06 am
#131
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Aug 1, 2012, 6:33 am
#132
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Sep 19, 2012, 9:07 am
#133
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Air Canada to launch low-cost carrier in 2013
http://www.thestar.com/business/arti...arrier-in-2013
Air Canada is pushing forward with its plans to launch a discount airline that will operate on routes to Europe and to sun destinations in the United States and the Caribbean.
“We think the low-cost carrier is a very very important initiative for Air Canada from different perspectives including growth and improving margins,” Air Canada’s chief financial officer Michael Rousseau told a CIBC institutional investors conference in Montreal on Wednesday.
He said that the airline, which is expected to announce some branding details of the proposed low-cost carrier within weeks, will launch operations next year.
It will focus on trans-Atlantic routes it does not currently fly to boost growth. On routes down south, the discount carrier will likely take over certain destinations Air Canada already flies that could be more profitable.
He acknowledged success depends on ensuring that they can have more seats in their planes, noting Air Canada’s 767 jets currently seat about 225 while low-cost carriers typically hold 275 seats, or 20 per cent more. Rousseau said it will be 100 per cent owned by Air Canada, with its own separate management team.
That comes in part because of an arbitration decision the airline won in July to settle a contract with its 3,000 pilots that will permit up to 50 planes including 20 Boeing 767s and 30 Airbus 319s to be used for the discount airline.
When contract talks with the Air Canada Pilots Association were stalled earlier this year, the airline had said it would look at alternative ways of starting a discount carrier including possibly through a partnership.
But the new contract with pilots is a critical win for the airline to go ahead on its own.
CEO Calin Rovinescu has repeatedly said the low-cost carrier is integral to the airline’s future success, noting that other legacy carriers like Air Canada have already launched in this market, especially in Asia.
Rousseau cautioned investors that it will take some time to ramp up this new carrier, noting it will be several years before all the aircraft would be in use.
“I think it’s a very exciting intiative, not just for Air Canada but for all our employees because it does provide growth opportunities,” he added.
Air Canada is pushing forward with its plans to launch a discount airline that will operate on routes to Europe and to sun destinations in the United States and the Caribbean.
“We think the low-cost carrier is a very very important initiative for Air Canada from different perspectives including growth and improving margins,” Air Canada’s chief financial officer Michael Rousseau told a CIBC institutional investors conference in Montreal on Wednesday.
He said that the airline, which is expected to announce some branding details of the proposed low-cost carrier within weeks, will launch operations next year.
It will focus on trans-Atlantic routes it does not currently fly to boost growth. On routes down south, the discount carrier will likely take over certain destinations Air Canada already flies that could be more profitable.
He acknowledged success depends on ensuring that they can have more seats in their planes, noting Air Canada’s 767 jets currently seat about 225 while low-cost carriers typically hold 275 seats, or 20 per cent more. Rousseau said it will be 100 per cent owned by Air Canada, with its own separate management team.
That comes in part because of an arbitration decision the airline won in July to settle a contract with its 3,000 pilots that will permit up to 50 planes including 20 Boeing 767s and 30 Airbus 319s to be used for the discount airline.
When contract talks with the Air Canada Pilots Association were stalled earlier this year, the airline had said it would look at alternative ways of starting a discount carrier including possibly through a partnership.
But the new contract with pilots is a critical win for the airline to go ahead on its own.
CEO Calin Rovinescu has repeatedly said the low-cost carrier is integral to the airline’s future success, noting that other legacy carriers like Air Canada have already launched in this market, especially in Asia.
Rousseau cautioned investors that it will take some time to ramp up this new carrier, noting it will be several years before all the aircraft would be in use.
“I think it’s a very exciting intiative, not just for Air Canada but for all our employees because it does provide growth opportunities,” he added.
Sep 19, 2012, 10:31 am
#134
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http://www.thestar.com/business/arti...arrier-in-2013
He acknowledged success depends on ensuring that they can have more seats in their planes, noting Air Canada’s 767 jets currently seat about 225 while low-cost carriers typically hold 275 seats, or 20 per cent more.
He acknowledged success depends on ensuring that they can have more seats in their planes, noting Air Canada’s 767 jets currently seat about 225 while low-cost carriers typically hold 275 seats, or 20 per cent more.
Sep 19, 2012, 11:22 am
#135
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Watch AC use an old CP Air, Wardair, EPA or PWA type name for the new business channel! Don't ask me why but I can see that connect or sense of humour 
Aeroplan as we know it today will look very different with the new AC!
Aeroplan as we know it today will look very different with the new AC!