Air Canada's low-fares domestic operation Tango is considering major expansion into the USA, as it prepares to start trans-border flights.
Services to the USA will start next month with flights to Fort Lauderdale and Orlando, Florida from Montreal, Ottawa and Quebec City, as well as flights between Toronto and Las Vegas.
"We're going to test the trans-border market with these very strong leisure routes," says Tango managing director Ben Smith. "Based on how those flights do, we'll potentially expand trans-border operations with more frequencies on leisure routes, shorter-haul routes and possibly to popular non-leisure destinations."
The division has proved highly successful during its first year operating domestic Canadian services - mostly long-haul flights emanating from Toronto and running parallel to mainline flights. With operating costs 25% lower than mainline flights, Tango is heralded as a key factor in Air Canada's return to profitability. "It's definitely exceeded our expectations," says Smith. "There was a lot of pent-up demand in Canada for this type of service."
Operating as a sub-brand of the Canadian carrier's mainline operations, Tango accounts for 19% of Air Canada's domestic capacity. Smith says Tango's domestic frequencies are likely to be increased next year.
The structure allows aircraft to be transferred between mainline and the no-frills product as the market dictates, with 10 Airbus A320s and six Boeing 737s dedicated to Tango during peak period.
Tango aircraft can be reconfigured into its one-class setting layout with an "overnight visit" to maintenance facilities, says Smith.
Source: Flight International
