Air Canada eyes discount market again

Air Canada may be looking at starting a new discount airline with reduced fares to select destinations, reports the Globe and Mail.

The news was revealed during contract negotiations with current Air Canada pilots. As part of a tentative agreement put forward by the company, the pilots are being asked to sign a letter of understanding about a decreased wage for those who would work on the new, low-cost airline.

To start, the company is ready to devote ten planes to the new line, and may eventually dedicate up to 50 A319s and Boeing 767s to the endeavor, which it says should create up to 462 new jobs for pilots.

This will be the carrier’s third attempt at branching into the discount market. Their first subsidiary, Tango, folded in 2003 after only two years of service, although its legacy lives on as the name of Air Canada’s cheapest class of tickets. A second try, Zip, also lasted only two years.