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Air Canada contemplates Rouge's next phase

Premium Analysis

Air Canada's low cost subsidiary Rouge is approaching its ninth anniversary, and during its time in operation both the Canadian market and the global aviation industry have gone through significant amounts of change.

Rouge launched in Jul-2013 and as it became more established it operated from Air Canada's hubs in Toronto, Montreal and Vancouver to leisure destinations in Europe, the US, the Caribbean, Latin America, and (at one point) Japan. In the past, Rouge had a fleet of 60 aircraft.

During the COVID-19 pandemic Air Canada refocused Rouge's mission as the crisis crippled global air traffic demand. The low cost airline's widebody operations were nixed, and its mission was narrowed down to leisure destinations in the Americas.

Now, as the crisis moves to a new, presumably more manageable phase, Air Canada is evaluating Rouge's role for the future. And the company is stressing that no matter what form Rouge may take, the airline will remain a key pillar in Air Canada's strategy in the future.

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