Air Canada plans by mid-2003 to spin off another airline brand, which will cater for the business traveller and have a dedicated fleet of Airbus A319s.
Called Elite, the separate airline will operate 40-seat A319s transferred from the main airline, where they would normally be configured with120 seats. The new service will begin with a handful of aircraft and expand to about 10, depending on its success. It will charge normal business class fares.
With start-up costs of around C$10 million ($6.3 million), the airline will begin operating on transcontinental domestic routes and eventually expand into international services.
The launch is part of Air Canada's strategy to convert the mainline carrier to a number of brands targeting specific sectors of the market. It launched Zip to compete with Calgary discount airline WestJet. Other brands include Tango, an eastern discount operation and Jazz, an amalgamation of Air Canada 's regional carriers. Another brand, Jetz, is a charter operation that caters to professional sports teams.
Source: Flight International
