Air Canada is planning to restructure its Boeing narrowbody fleet. The Canadian flag carrier currently has around 40 737 MAX jets.
In an Investor Day presentation published Tuesday, the airline detailed its long-term fleet plans. By 2028, the carrier is slated to shift its 737 MAX fleet under the low-cost Air Canada Rouge brand.
“We will be transferring our Boeing 737 MAX aircraft to Rouge to better position the brand for our customers in the leisure segment,” said Mark Galardo, Air Canada’s executive vice president of revenue and network planning, during the event.
The company’s Rouge subsidiary operates a fleet of Airbus aircraft to leisure destinations. It was launched in 2012.
Many of Air Canada Rouge’s A320-series aircraft are nearing end of life, Galardo added. The subsidiary will eventually consolidate to a single fleet type.
“By moving the 737 MAX to Rouge, we will be able to reduce our variable CASM significantly, increase our seat count, and offer a much improved competitive tool to address the leisure market,” he continued. “Furthermore, this gives us the flexibility to operate a Vancouver base with the airplane, improving our competitiveness and our range ability in this market and in Western Canada at large.”
Air Canada’s 737 MAX 8s fly under the mainline brand on a wide array of routes, including some trans-Atlantic flights. The airline has 12 more 737 MAXs on order, most of which are set to enter service next year.
The carrier’s 737 MAX aircraft can accommodate up to 169 passengers with 16 business class seats.
According to the presentation, the 737 MAX will “enhance [Rouge’s] leisure competitiveness,” including new destinations. By 2026, the company will open a Vancouver, British Columbia, base for the low-cost brand.
