Air Canada has announced that it will undertake a Request for Proposal (RFP) process to select a new regional airline to operate certain existing US regional transborder routes, starting in mid-2014. Select Canadian and US regional carriers will be invited to participate in the RFP process and submit their respective pricing and other terms and conditions of carriage.
"The launch of a request for proposals is an important next step in our regional airline diversification strategy and ongoing cost transformation program," said Kevin Howlett, senior vice president, regional markets. "Over the past two years, Air Canada has made significant changes to its strategy and relationship with its regional partners, now all operating under the Air Canada Express banner.”
“Most recently, we transferred the operation of our Embraer 175 aircraft to a regional carrier whose cost structure is more in line with the US regional carriers, and as low-cost operators continue to grow in the rapidly evolving North American regional markets, it is critical for Air Canada to take the necessary steps to ensure its cost structure in these markets is also competitive."
Air Canada currently has capacity purchase agreements with four regional airline partners: Jazz Aviation, Sky Regional Airlines, Air Georgian and Exploits Valley Air Services (EVAS). Jazz Aviation is the main provider of current regional services to Air Canada and has a mixed fleet of around 120 regional jet and turboprops ranging from 38-seat Bombardier Dash 8-100s to 70 plus seater Dash 8-Q400s and CRJ705s. Sky Regional is the carrier that is now operating the Embraer 175s for Air Canada alongside its initial fleet of Bombardier Dash 8-Q400s, while Air Georgian and EVAS operate smaller 18-seat Beech 1900s on thinner routes.
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