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AC evaluating the future of rouge post-COVID

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AC evaluating the future of rouge post-COVID

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Old Mar 31, 2022, 1:19 pm
  #1  
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AC evaluating the future of rouge post-COVID

Headline only.

Air Canada is reconsidering the operational strategy of its discount subsidiary Rouge, a move coming amid heightened low-cost competition within Canada.
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Old Mar 31, 2022, 1:25 pm
  #2  
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Originally Posted by tracon
Headline only.

Air Canada is reconsidering the operational strategy of its discount subsidiary Rouge, a move coming amid heightened low-cost competition within Canada.
I was expecting someone would pick on this... This seems to have come out of yesterday's investor event.

From the daily AIAA newsletter:


Air Canada Re-Evaluating Strategy For Subsidiary Rouge

FlightGlobal (3/31) reports that Air Canada Chief Commercial Officer Lucie Guillemette said the airline is rethinking the strategy behind its Rouge subsidiary. Guillemette said that the discount airline is “in a little bit of a transition period.” She said, “We are now in the process of really re-looking at the mission of Rouge and how we best want to proceed in the years to come.” Air Canada believes Rouge will help the airline compete against other discount airlines, but Air Canada has retired 25 Boeing 767 jets used by Rouge, leaving the subsidiary with “an all-Airbus A320-family fleet that stood at 39 jets at the end of 2021,” though “many of those aircraft are 25 to 30 years old, according to Cirium fleet data.” Air Canada suspended operations at Rouge from February to September 2021 and has flown to a limited number of destinations since relaunching flights.
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Old Mar 31, 2022, 2:41 pm
  #3  
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First Tango, then Zip, now Rouge, surely there are more profitable/rewarding places to make a buck!
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Old Mar 31, 2022, 8:02 pm
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Originally Posted by BlondeBomber
First Tango, then Zip, now Rouge, surely there are more profitable/rewarding places to make a buck!
If rouge goes the way of Tango and Zip then I will be a happy camper.
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Old Mar 31, 2022, 9:12 pm
  #5  
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Here's the rest of the article.

https://canadianaviationnews.wordpre...sidiary-rouge/
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Old Apr 2, 2022, 11:16 am
  #6  
 
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Originally Posted by tracon
It seems pretty clear they are not sure what to do with it. It has the same pilot pool so I guess they save some money on the flight attendants, but it would seem that its cost structure is likely not that different from mainline.

They have just refurbished the cabins on half the A321 fleet. I guess they could fold it into mainline, but then they would have to change up the seats as they don't have screens, if they are to keep the mainline product consistent. The A319's are definitely going to age out, but the A321 and A320 fleet is relatively young, with the A321's 10 years or younger.

There are rumours that the 15 mainline A321's are being refurbished, along with the 8 A320's that are being kept. If Rouge continues, could some of these be moved over? Kind of a head scratcher...
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Old Apr 2, 2022, 3:18 pm
  #7  
 
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As we say here, Rouge is cheep for them, not for PAX. In no way is it competitive (or branded to be competitive) head to head with true discount airlines.

I've never had the option of mainline or Rouge; very few routes ever did. I don't think they rationally have data to know if the extra branding is worth while. I'm today basically willing to risk/suffer Rouge because it can tap into the lounges, points, service recovery of mainline... But also has those shared costs. Not discount. Why bother?

East coast outports and Sun seems like a solution looking for a problem. And if that is a problem, Jazz is right here.
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Old Apr 3, 2022, 11:26 am
  #8  
 
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Originally Posted by RangerNS
As we say here, Rouge is cheep for them, not for PAX. In no way is it competitive (or branded to be competitive) head to head with true discount airlines.

I've never had the option of mainline or Rouge; very few routes ever did. I don't think they rationally have data to know if the extra branding is worth while. I'm today basically willing to risk/suffer Rouge because it can tap into the lounges, points, service recovery of mainline... But also has those shared costs. Not discount. Why bother?

East coast outports and Sun seems like a solution looking for a problem. And if that is a problem, Jazz is right here.

“Cheap for them, not for pax” is so correct. In some cases Rouge was actually more $ than I paid before my various routes were “rouged”.
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Old Apr 4, 2022, 12:27 am
  #9  
 
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I am betting that most posters here would dream of saying good riddance. When frequent flyers know what it means to be "Rouged", with no monetary compensation, how does does the more expensive than other low cost airlines help your primary brand?
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