Canada's WestJet is studying the possibility of launching a new short-haul, regional carrier that would operate a fleet of 40 turboprop aircraft.
The airline said it would meet with employees over the course of this month to discuss plans to launch a regional subsidiary by "as early as 2013".
WestJet operates an all-Boeing 737 fleet. The carrier was reported earlier this month to be considering acquiring Bombardier Q400s or ATR 72s to operate to smaller markets in Canada.
Westjet founder and chairman Clive Beddoe said today: "This new airline, powered by our low-cost model and strong corporate culture, would greatly benefit the guests we serve, their communities and our shareholders.
"Our single fleet of Boeings will be joined by a sister company operating a single fleet of turboprops to maintain maximum efficiencies for both airlines."
WestJet chief executive Gregg Saretsky described the plan as "the natural evolution of our airline".
Source: Air Transport Intelligence news