Sunday, December 30, 2012

Global Impact: Air Canada Start-Up Offers Low-Cost Service to Europe, Americas

Air Canada announced on Wednesday (December 26) that its new low-cost airline, Rouge, will offer flights to destinations in Europe and the Americas beginning July 1, 2013.

The new carrier will launch operations with two Boeing 767s and two Airbus 319s, but Rouge plans to expand to more than 50 aircraft within the next three to five years.

COMMENT: Initial destinations will include Venice, Edinburgh, Athens, Cuba, Dominican Republic, Jamaica and Costa Rica.

Air Canada plans to hire 200 people for Rouge. Cost savings are expected to come from paying lower wages and putting more seats in aircraft in a so-called new multi-tier seating structure.