The Globe and Mail reports in its Wednesday edition that Air Canada is gearing up to compete in the full-fledged battle against two ultralow-cost carriers (ULCC) which will start flying next year. The Globe's Greg Keenan writes that Air Canada will offer what it calls an ultralow-cost fare on selected flights and expand its low-cost Rouge network to regional routes in Canada.
Taking customers in 2018 are Canada Jetlines and the as-yet unnamed ULCC being planned by WestJet. Flair Airlines has already begun flying.
Canada Jetlines said last week that it will offer base fares of less than $100 in Canada, but charge for stowed and walk-on baggage. Air Canada officials say that amendments to the labour agreement with its pilots permit an expansion of the Rouge narrow-bodied airplane fleet beyond its initial limit of 50 planes. Rouge has 49 planes now.
Air Canada would not say what regional domestic routes Rouge would tackle, but said Air Canada is expecting some low-cost competition across the Pacific Ocean so it has begun offering Rouge flights between Vancouver and Osaka and Nagoya in Japan. Rouge's bigger planes could replace the smaller planes of its regional partners on Toronto-Quebec City flights.
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