Air Canada committed to low-cost project
Air Canada remains committed to entering the low-cost segment of the airline industry, either by starting its own low-cost carrier or through a partnership, according to the company’s chief executive.
“If we are to transform our company to make it truly sustainable on a long-term basis, profound changes have to occur to our business model,” said Calin Rovinescu.
The carrier first disclosed its plans last year, saying it was targeting destinations in Europe, Mexico and the Caribbean.
A low-cost carrier will help the 75-year-old airline cut costs and make it more competitive with increasing numbers of low-cost carriers around the world, Rovinescu said at the airline’s annual meeting.
Airlines such as Air Canada that have been in existence for many years have cost structures that are 30-50% higher than those of low-cost airlines, Rovinescu said.
He said there are “three or four very successful models out there” that Air Canada is studying, including the possibility of launching a low-cost airline to fly to leisure destinations.
Air Canada was not intending to turn the entire airline into a low-cost carrier, Rovinescu said.
By David Wilkening, TravelMole US
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025