Air Canada Shifts Boeing 737 MAX Fleet to Budget Arm Rouge
In a significant reorganization of its fleet, Air Canada has announced plans to transfer all 41 of its Boeing 737 MAX jets to its low-cost subsidiary, Air Canada Rouge. The decision, revealed during an investor update on December 17, 2024, marks a strategic realignment as Air Canada focuses on enhancing efficiency and cost-effectiveness in its operations.
Rouge, which operates primarily leisure routes to the U.S., Central America, and the Caribbean, will take over the 41 Boeing 737 MAX 8 aircraft currently in service with Air Canada, in addition to 12 more on order. This move will see Rouge’s fleet expand considerably, growing from 39 Airbus aircraft to over 50 with the inclusion of the MAX jets. The transition is set to complete by 2028, culminating in Air Canada’s cessation of 737 MAX operations.
Air Canada introduced the Boeing 737 MAX into service in December 2017. The shift of these aircraft to Rouge is driven by the MAX’s 20% lower operational costs per seat compared to Rouge’s older A320-family aircraft, which average 17.9 years in age. The financial advantage is expected to enable Rouge to offer more competitive fares on its leisure routes.
The 737 MAX aircraft will likely undergo a reconfiguration to increase seating capacity from their current 169-seat layout to approximately 189 seats in a single-class configuration, typical for leisure-focused airlines. This higher density seating is aligned with Rouge’s aim to provide cost-effective travel options.
Furthermore, Air Canada has disclosed plans to establish a new crew base at Vancouver International Airport by 2026. This base will support additional routes, including flights to the Hawaiian Islands, enhancing Rouge’s service offerings from the Canadian west coast alongside its existing operations from the east coast.
The realignment of the fleet includes Air Canada’s ongoing shift towards newer aircraft models for its mainline operations. The carrier has been integrating the Airbus A220-300, with 34 currently in service and 26 more on order. These aircraft feature a two-class configuration and are part of Air Canada’s strategy to refresh its medium-haul fleet, which also includes the Airbus A321. The airline has 34 A321s in service and an additional 35 A321neos on order, signaling a gradual phase-out of older A319s and A320s.
On the long-haul front, Air Canada will continue to rely on a mix of Airbus and Boeing models, including Airbus A330-300s, Boeing 777s, and Boeing 787 Dreamliners. The airline also anticipates the introduction of Boeing 787-10s, although delivery has been delayed, prompting the temporary reinstatement of two Boeing 767-300ERs to ensure uninterrupted service.
This fleet strategy underscores Air Canada’s focus on operational efficiency and market adaptability, positioning Rouge to better compete in the budget travel sector while aligning the mainline fleet with newer, more efficient aircraft to meet future market demands and environmental targets.
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