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Air Canada redoubles efforts to launch low-cost carrier

Air Canada flights had so far been operating in domestic Canadian destinations as well as internationally. The airline has, however, vowed to make extensive efforts to float its own low-cost carrier.

Calin Rovinescu, Air Canada’s Chief Executive Officer, recently said that the company will be redoubling its efforts to launch a low-cost carrier. He said that the company is prepared to make some hard choices to ensure Air Canada’s growth.

He stressed that the creation of a discount division is crucial for the airline in the fragile aviation industry, but said that union leaders will find it extremely difficult to embrace such ‘transformational change’.

Air Canada had been contemplating to launch its low-cost subsidiary for quite some time now, but disclosed its plans for the first time in April 2011. With the launch of its low-cost carrier, popular vacation destinations in Europe, Mexico and the Caribbean are likely to be targeted.

Rovinescu cited Japan Airlines, Singapore Airlines, Thai Airways and Japan’s All Nippon Airways as examples which are making determined moves in the low-cost sector.

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