Air Canada to launch low-cost carrier next year to service leisure destinations

Air Canada will launch a new low-cost carrier (LCC) in 2013, said executives during its earnings call today. It will operate up to 50 Airbus A319 and Boeing 767-300ER aircraft transitioned from Air Canada’s existing fleet to leisure destinations in the Caribbean, Mexico and Europe. Air Canada operated LCC subsidiaries Tango and Zip from 2001 until 2003 and 2004, respectively, to compete with other LCCs.

Canadian Press: The low-cost carrier model will allow Air Canada to grow its presence in markets where it can’t now compete effectively with new entrants, return to markets previously abandoned and enter new markets that are impossible with its mainline brand.