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Air Canada to Offer Cheap Flights Starting in 2013

Air Canada is set to launch a budget carrier in 2013, but will ramp up slowly with service.  Their announcement to launch next year comes after having overcome union resistance to the idea of a budget carrier.  The first destinations will be popular holiday destinations and the airline will slowly increase the size of the budget fleet to 50 aircraft.  The announcement for the launch was made after they reported a weak quarter, which caused stocks to plummet by 10%.

Air Canada is the biggest airline in the country and it has spent years promoting a budget carrier as a way to cut costs and increase revenues.  Only nine days ago was the airline able to move ahead with their plans, once an arbitrator forced a new labor agreement on pilots who were in opposition to the new budget carrier.  The airline says that the timing of the operation of the new budget carrier depends on the delivery of new, larger planes to Air Canada, which will allow them to devote the smaller planes to the budget operations.

The above article is a summary.  Please see the source article at Google News.

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