MONTREAL – Air Canada’s Rouge service will fly domestically for the first time next summer with three routes planned that have high numbers of leisure travellers.
The airline said Tuesday that Rouge – launched last summer as a low-cost carrier – will take over the Toronto-Kelowna, B.C., and the Toronto-Sydney, N.S., routes and be used for a new seasonal route between Calgary and Halifax.
Lower wage rates and additional seating help to reduce Rouge’s operating costs compared to routes operated by Air Canada.
Air Canada CEO Calin Rovinescu telegraphed the use of Rouge subsidiary for domestic routes when he told analysts in August it would look at opportunities on a market-by-market basis.
Rouge will fly six times per week between Calgary and Halifax starting May 1, increasing to up to 10 weekly flights during the peak summer period.
Capacity will increase more than 40 per cent when Rouge flies Airbus narrowbody planes starting May 1 for daily flights to Sydney. Rouge flights to Kelowna will start June 1, with up to daily service during the peak summer period.
The Rouge flights will offer economy and premium class seating.
Air Canada (TSX:AC) also said it will return to Mexico City from Montreal by operating new Rouge summer service starting in May. Rouge will also take over flights to Varadero, Cuba from Calgary and Montreal, as well as the Montreal to Martinique route.
Launched in July 2013, Air Canada Rouge has been offering service to 68 leisure destinations in the United States, Caribbean, Mexico and Europe using Airbus A319 and Boeing 767 aircraft. It will begin flying to Japan next year.
Meanwhile, Air Canada also announced new daily non-stop service using Jazz-operated turboprops for Calgary-Terrace, B.C., Calgary-Nanaimo, B.C, and Vancouver-Comox, B.C. routes. Daily Air Canada flights will be added between Toronto and Austin, Tex.
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