Air Canada considering launch of new leisure LCC as competition in leisure market intensifies

Air Canada is drawing up a business plan to launch a new leisure LCC as a competitive response to its low cost rivals in the Canadian market, according to reports in the Globe and Mail. LCCs, led by WestJet and including Porter Airlines, Air Transat and Sunwing Vacations, have been growing at a faster pace than Air Canada in recent years, eroding the market share of the nation’s largest carrier. Air Canada has launched two other LCCs, Tango and Zip, in the past, both of which operated for less than two years.