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Air Canada gets approval to create a new low-cost subsidiary

Leisure travelers can now look forward to book Air Canada flights tickets at quite cheap rates as the airline braces to float a new low-cost subsidiary soon.

The airline indicated that its plans to create a new low-cost subsidiary have been approved by the authorities. The airline’s new low-cost subsidiary is being brought into existence to better compete in leisure markets.

Air Canada in a statement said that the floating of the low-cost carrier is quite significant as it will provide the airline with a credible and effective growth platform to help it compete in the crucial low-cost space.

Air Canada is so far tightlipped and refusing to divulge more details about the new low-cost carrier it will be floating. Details such as seeking a separate operating certificate for the new low-cost carrier, a separate management structure, seat density, estimated aircraft utilization levels or on how both the carriers are to carry out network planning and optimization are yet to be known.

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