Air Canada Expands Travel Choices with the Launch of its Low Fare Carrier
Western-based low fare carrier dramatically reduces costs and responds to
market realities
MONTREAL, April 19 /CNW/ - Air Canada announced today that it will
further reduce its costs and expand the range of choices for low fare, high
value air service with the launch this summer of its wholly owned,
independently operated subsidiary low fare carrier based in Western Canada.
The new carrier will operate primarily short haul routes with connections to
and from Air Canada's worldwide network, with a start-up fleet of six Boeing
737-200 aircraft. The fleet will eventually grow to twenty 737-200s, all
transferred from the existing Air Canada mainline fleet.
"In preparation for this launch, over the past months, Air Canada has met
with stakeholders across the country to discuss the benefits to communities
and consumers of our participation in this important and rapidly growing
sector of the market," said Robert Milton, President and Chief Executive
Officer. "The low fare carrier is a critical component of Air Canada's
response to growing consumer demand for low fare travel that will also allow
us to reduce our costs dramatically. I am confident that the low fare carrier
will further build on Tango's success. Not only has consumer response to Tango
exceeded expectations but Tango is also contributing significantly to our
overall cost reduction program.
"Canadians tell us that they want Air Canada to continue serving their
communities, but our mainline operations in certain short haul markets may no
longer be financially sustainable as yields have been driven down by low fare
competition. We understand that consumers want low fares on a year-round
basis. The new carrier will provide an attractive and affordable option with
convenient connections to Air Canada's worldwide network.
"As we have said previously, our focus and strategy for 2002 is to
transform the airline and reduce costs in a material fashion by, among other
things, utilizing existing aircraft more effectively to participate in the
various niche markets that are evolving in the airline industry. We will
continue to deliver both choice and value to our customers, which in turn will
ensure Air Canada's viability," Mr. Milton concluded.
Air Canada and its subsidiaries will offer five distinct air passenger
services.
- AIR CANADA is the airline's full service mainline operations and
flagship brand and operates a comprehensive domestic, transborder and
international network of flights with a range of fares and three
classes of service: Hospitality, Executive and Executive First. The
mainline service continues to offer a wide range of product features
including Maple Leaf lounge access and Concierge service. Air Canada's
global network, schedules and customer services are enhanced through
its membership in the Star Alliance network, which serves some 730
airports in 124 countries with 11,000 daily flights.
- AIR CANADA JAZZ is Air Canada's regional carrier that operates an
extensive, high frequency regional network with connections to the
airline's global network. A wholly owned subsidiary of Air Canada, Air
Canada Jazz has a separate fleet, headquarters and management team. Air
Canada Jazz offers largely Hospitality class service, with Executive
Class service available on certain aircraft.
- TANGO BY AIR CANADA is Air Canada's low fare, no-frills service that
replaces former Air Canada mainline or regional service on certain
domestic routes and sun/leisure travel destinations. Tango operates
point to point flights that are not designed for connection to the Air
Canada network. Tango product features include an all-Hospitality,
unique "all extras are optional" inflight service, efficient aircraft
seating configuration, web booking tools, call centre distribution
system and exclusive use of electronic tickets - all contribute to cost
savings which are passed on to consumers.
- THE NEW LOW FARE CARRIER is a separate airline operating flights with
all-Hospitality service between short haul markets. A wholly owned
subsidiary of Air Canada, the low fare carrier will operate with its
own management, fleet, headquarters and with worldwide network
connections with Air Canada and Air Canada Jazz.
- AIR CANADA JETZ is Air Canada's specialized charter jet service
designed to meet the travel needs of corporate clients and sports teams
using customized Boeing 737-200 aircraft in an all-Executive Class
configuration.
NOTE: A news conference will be held at 10:00 a.m. today M.D.T. at the
Calgary International Airport to announce details on the low-fare carrier
including its name, network and brand. A media advisory with details on the
news conference will be issued at 7:00 a.m. M.D.T. on Canada News Wire, and
the low cost carrier's news release and background information from the news
conference will be posted at 10:00 a.m. M.D.T. on Canada News Wire.
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