Air Canada to launch cut-rate vacation carrier
Apr 12, 2011, 5:00 am
#1
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Air Canada to launch cut-rate vacation carrier
http://www.theglobeandmail.com/repor...rticle1980935/
Air Canada (AC.B-T2.280.083.64%) plans to create a discount leisure airline to compete on routes to Europe, Mexico, the Caribbean and other popular vacation spots, a move that will ratchet up the competitive pressure on tour operators such as Transat A.T. Inc.
The country’s largest airline is actively drawing up a business plan to launch a low-cost carrier (LCC) with four Boeing 767s and six Airbus A319s, with the potential to increase that fleet to 50 planes, according to a letter of understanding attached to the tentative labour pact between the company and the Air Canada Pilots Association.
Well, you can certainly guess at what three of the 767s will look like...
Air Canada (AC.B-T2.280.083.64%) plans to create a discount leisure airline to compete on routes to Europe, Mexico, the Caribbean and other popular vacation spots, a move that will ratchet up the competitive pressure on tour operators such as Transat A.T. Inc.
The country’s largest airline is actively drawing up a business plan to launch a low-cost carrier (LCC) with four Boeing 767s and six Airbus A319s, with the potential to increase that fleet to 50 planes, according to a letter of understanding attached to the tentative labour pact between the company and the Air Canada Pilots Association.
Well, you can certainly guess at what three of the 767s will look like...
Apr 12, 2011, 5:13 am
#2
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Is AC planning to purchase more used 767s?
Apr 12, 2011, 5:18 am
#3
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From the link: "Air Canada envisages having 30 Airbus planes and 20 Boeings in the new division. Those planes can carry between 120 and 213 passengers in their current configurations, but business class would be removed for the discount airline and replaced with “premium economy” seating."
Apr 12, 2011, 5:37 am
#4
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Will regional cities like YSB have cnx rates to hubs with Jazz?
I can see AC discount flying hub cities YYZ,YUL....
I can see AC discount flying hub cities YYZ,YUL....
Apr 12, 2011, 5:42 am
#5
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ok ok no frills "cheapoair"
Apr 12, 2011, 5:47 am
#6
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Maybe they will call it zip! or Tango.
Interesting news.
Interesting news.
Apr 12, 2011, 5:55 am
#7
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Where does Air Canada Vacations fit in this plan?
Apr 12, 2011, 6:21 am
#8
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Apr 12, 2011, 6:28 am
#9
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Does this mean the Three Amigos will be taken off the Spain and Hawai'i routes??
Apr 12, 2011, 6:32 am
#10
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^ likely not. It means the new vacation discount carrier will operate those routes.
Apr 12, 2011, 6:34 am
#11
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Didn't they try this with Tango and fail miserably?
Apr 12, 2011, 6:41 am
#12
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Apr 12, 2011, 7:10 am
#13
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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.)
Apr 12, 2011, 7:27 am
#14
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Ah, but will there be a fuel surcharge ?
Apr 12, 2011, 7:36 am
#15
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Wirelessly posted (iPhone: Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_1 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8G4 Safari/6533.18.5)
I'm sure AC will be taking more than a few moves from the JQ playbook.
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.)