Air Canada confirms LCC plans; launch slated for 2013
Air Canada (AC) executive VP and CFO Michael Rousseau told investors Wednesday the Montreal-based airline will launch a subsidiary low-cost carrier (LCC) next year with a branding announcement to come “within a couple of weeks.”
Speaking to a CIBC World Markets conference in Montreal, available via webcast, Rousseau said the labor peace achieved by AC earlier this year with the help of government intervention (ATW Daily News, Aug. 8) enables it to launch an LCC that eventually will have a fleet of 50 aircraft. “We’re working a lot on developing a low-cost carrier,” he said. “We are currently developing those plans.”
He said the LCC within “several years” will operate 20 Boeing 767s and 30 Airbus A319s, including 20 A319s sourced from AC’s current mainline fleet. The LCC will be focused on transatlantic, US leisure and Caribbean routes.
“There are markets we do not currently fly transatlantic that … we believe we can be very successful at [using reconfigured 767s],” he said, explaining that the LCC’s 767s will have 20% more seats than AC’s 767s. Higher capacity aircraft are “where about half the cost difference comes between low-cost carriers and mainline carriers,” he said.
While the LCC (ATW Daily News, April 14, 2011) will operate new transatlantic routes for AC, some of its current US and Caribbean routes “will flip to the LCC,” Rousseau said. Further details on the LCC will be revealed shortly, he added, but noted it has been decided “the model will be 100%-owned, separate leadership.”
http://atwonline.com/airline-finance-data/news/air-canada-confirms-lcc-plans-launch-slated-2013-0919
http://www.canada.com/business/all/...+carrier+plans+launch+2013/7265940/story.html
Air Canada (AC) executive VP and CFO Michael Rousseau told investors Wednesday the Montreal-based airline will launch a subsidiary low-cost carrier (LCC) next year with a branding announcement to come “within a couple of weeks.”
Speaking to a CIBC World Markets conference in Montreal, available via webcast, Rousseau said the labor peace achieved by AC earlier this year with the help of government intervention (ATW Daily News, Aug. 8) enables it to launch an LCC that eventually will have a fleet of 50 aircraft. “We’re working a lot on developing a low-cost carrier,” he said. “We are currently developing those plans.”
He said the LCC within “several years” will operate 20 Boeing 767s and 30 Airbus A319s, including 20 A319s sourced from AC’s current mainline fleet. The LCC will be focused on transatlantic, US leisure and Caribbean routes.
“There are markets we do not currently fly transatlantic that … we believe we can be very successful at [using reconfigured 767s],” he said, explaining that the LCC’s 767s will have 20% more seats than AC’s 767s. Higher capacity aircraft are “where about half the cost difference comes between low-cost carriers and mainline carriers,” he said.
While the LCC (ATW Daily News, April 14, 2011) will operate new transatlantic routes for AC, some of its current US and Caribbean routes “will flip to the LCC,” Rousseau said. Further details on the LCC will be revealed shortly, he added, but noted it has been decided “the model will be 100%-owned, separate leadership.”
http://atwonline.com/airline-finance-data/news/air-canada-confirms-lcc-plans-launch-slated-2013-0919
http://www.canada.com/business/all/...+carrier+plans+launch+2013/7265940/story.html