Air Canada has confirmed plans to launch a low-cost subsidiary next year which will fly to destinations in Europe, the US and the Caribbean.
US media outlets including Reuters state that the Canadian airline has “overcome union resistance to the launch of a low-cost carrier”, and will start offering “cheap flights to holiday destinations” next year.
There are plans for the low-cost subsidiary to eventually operate up to 50 B767 and A319 aircraft, although Air Canada’s CEO Calin Rovinescu admitted: “This doesn't happen overnight”.
Planned destinations include Europe, the Caribbean, Mexico and holiday destinations in the US such as Florida and Nevada.
The news follows the creation of Iberia Express, a similar low-cost subsidiary launched by Iberia earlier this year.
Rovinescu confirmed the plans as the carrier’s latest financial results were announced, showing a net loss of Canadian $96 million for the second quarter of 2012 compared to a net loss of $46 million for the same period in 2011.
aircanada.com