Air Canada LCC offers lower new hire pay, tries to follow Asia

Air Canada's plans for a low-cost carrier subsidiary has taken one small step forward with a tentative agreement with the Canadian Union of Public Employees. The union is recommending its members accept the new, five-year contract, which calls for an annual 2% wage increase, rising to 3% after three years. But Air Canada still has to overcome several challenges before the LCC can be launched.