AC set to launch new discount vacation carrier

FrugalFlyerv2.0

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Oct 29, 2003
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MONTREAL—Air Canada’s (TSX: AC.B) reported plans to launch a discount carrier could mean lower airfares to select destinations and increased competitive headaches for its airline rivals, industry analysts said Tuesday.

Canadian consumers could get an initial reprieve from rising fares if Canada’s largest carrier establishes a low cost carrier to fly to vacation spots in Mexico, the Caribbean and Europe.

... ... ... said the new carrier could be modelled after Jetstar, an Australian discount carrier that operates as a wholly owned subsidiary of Qantas.

The Globe and Mail reported that Air Canada pilots are being asked to approve a tentative agreement that includes a letter of understanding that creates a new wage rate for a discount carrier.

Toronto Star link

I guess AC figured out why CO Lite, US Metrojet, UA Ted, DL Song* and AC Tango failed and wants to try one-more-time.

( *WT will tell you how Song was a huuuuuuuge success and DL killed it because they are humble and did not want to show off and make too much money from the venture ... ... ... :lol: )