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Air Canada
Symbol AC
Shares Issued 274,033,942
Close 2017-11-01 C$ 24.10
Market Cap C$ 6,604,218,002
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Globe says Air Canada gets concessions from pilot union

2017-11-02 07:45 ET - In the News

The Globe and Mail reports in its Thursday edition that a new deal Air Canada has signed with its pilots allows its Rouge airline to expand its narrow-bodied fleet. The Globe's Greg Keenan writes that the changes mean Air Canada will be able to expand the fleet at low-cost Rouge by one narrow-bodied plane for every one it adds to its mainline service, and by two narrow-bodied jets for every wide-bodied plane added to the mainline fleet. Amendments to the deal with the Air Canada Pilots Association, which eliminate a 50-plane limit on the Rouge fleet, were agreed to in September. The details of how the contract permits the low-cost unit to expand were not revealed at the time. The expansion of Rouge is a key part of Air Canada's strategy to compete against ultralow-cost carriers (ULCCs) such as Canada Jetlines and WestJet's Swoop, both of which are planning to begin operations next summer. Air Canada will take delivery of two narrow-bodied Boeing 737 jets this year -- the first jets from a 61-plane order -- and will add six wide-bodied Boeing 787s to its mainline fleet during the rest of this year and in 2018. Air Canada is looking at whether, say, to fly into Hamilton, Ont., from Abbotsford, B.C.

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