Air Canada Shifts 737 MAXs to Rouge Brand

The carrier is hoping to grow its low-cost subsidiary.

An Air Canada Boeing 737 MAX 8 (Photo: AirlineGeeks | William Derrickson)

[ Planes ]December 17, 2024 11:52 am ET

By Ryan Ewing

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.”

Slide from Air Canada’s Investor Day presentation (Photo: Air Canada)

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.

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Ryan Ewing

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.

Follow Ryan

Author

Ryan Ewing

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.
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