Chris Jasper/LONDON
Air Canada is to put Canadian Regional Airlines (CRA) up for sale "in the near future", although it hopes no buyer will come forward as it plans to fold the carrier into its own regional operation. CRA must be offered for purchase as a condition of Air Canada's takeover of Canadian Airlines.
The Star Alliance member's chief executive Rob Milton says he expects the rival oneworld grouping - which Canadian leaves on 1 June - to re-enter Canada's domestic market at some point, although he says this is more likely to be in the form of a start-up, or a deal with an airline such as Canada 3000, than a swoop for CRA, valued at around C$175 million. Don Carty, chief executive of oneworld's American Airlines, is "disappointed about Canadian", but says "the network doesn't badly need a substitute carrier in Canada. Our priorities in terms of size of networks don't dictate another partner."
Milton says Air Canada is also planning to launch a low-cost carrier this year, with its hub at Hamilton (near Toronto) and initially operating six Boeing 737s to up to 10 cities. A long-haul cargo division operating four-10 Boeing 747 freighters is planned for transatlantic and transpacific routes.
Air Canada and Canadian are to continue operating independently, although Milton wants a full merger as soon as possible. He reveals Air Canada's widebody planning is likely to see the combined seven-strong 747-400 fleet reduced, while the Airbus A340-500/600 orderbook will grow from five to 20 (10 of each). The A330-300 order will increase from eight to between 16 and 20. The airline has just withdrawn Canadian's last four McDonnell Douglas (MDC) DC-10s, replacing them with four Boeing 767s. This raises the combined 767 fleet to 47, although Air Canada's -200s could be sold for freighter conversion.
Milton confirms Air Canada's requirement for around 100 regional jets of a single type to replace 19 MDC DC-9-30s, 31 Fokker F28s, 10 British Aerospace 146s and 44 Boeing 737s, some of which could go to the low-cost start-up. Short-haul planning is focused on the Airbus A320 family, with the combined airline operating 82 of the type.
Source: Flight International
