Air Canada plans to expand service in Western Canada on March 1.
The move results from its Jazz Aviation LP partner investing approximately $150 million to buy five Bombardier Q400 aircraft and, for the first time, basing the new planes in Western Canada.
The first new flights will be in Alberta, but expanded service is set to launch in B.C. in May, Air Canada’s regional general manager of passenger sales, James Howey, told Business in Vancouver February 26.
“This is the first time that we’ve seen a fleet acquisition plan in Western Canada, although the fleet acquisition by Jazz was happening last year and before for the eastern market.”
He expects Air Canada (TSX:AC-B) to expand its number of flights that include a B.C. destination 16% to 1,143 per week this summer from the current 980. That includes flights entirely within B.C. and those that leave the province.
Many Air Canada routes to smaller B.C. destinations are currently served by 50-passenger planes. Some of those routes will be served by the Q400s, which hold 74 passengers yet have the same operating costs as their 50-passenger counterparts.
Jazz Aviation, which operates separately from Air Canada and is owned by Halifax-based Chorus Aviation Inc. (TSX:CHR.B), is contracted by Air Canada to operate flights.
“The focal point is really to add seat capacity to key markets where we’ve seen pent-up demand,” Howey said. “The story is really about Fort St. John, Prince George, Smithers, Terrace and Fort McMurray, in addition to the new aircraft.”
Air Canada has also been expanding its international services out of Vancouver International Airport (YVR), where it offers almost twice as many outbound seats (4,903,610 in 2012) as the second-biggest carrier that flies from YVR – WestJet Airlines Ltd. (TSX:WJA).
Air Canada temporarily increased its number of weekly Vancouver-Sydney flights to 10 between December 15 and January 31. That route is back to seven flights per week.
Air Canada’s other international expansion is set to take effect in June when it boosts its number of flights each week to Beijing to 11 from the current seven.
Air China announced February 5 that it will also increase its number of flights between Vancouver and Beijing to 11 from seven flights per week starting May 17.
Air Canada employs about 5,000 people who are based in B.C.; Jazz Aviation employs 725. Howey said the airline is hiring, though the jobs tend to be based in Toronto and Montreal.
WestJet announced plans in January to launch a short-haul regional airline as early as next year – a service that would compete directly with Air Canada.
But that doesn’t concern Howey.
“We’re not immune to competition anywhere in our network, so we see this as a normal market practice. We’re prepared to compete.”
