Air Canada (AC, Montréal Trudeau) 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 U.S. regional carriers will be invited to participate in the RFP process and submit their respective pricing and other terms and conditions of carriage. The Canadian national carrier says the move is in line with its new policy of outsourcing business to regional carriers whose "cost structure is more in line with the U.S regional carriers". In addition, it notes that as Low Cost Carriers 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 Air (QK, Halifax), Air Georgian (Toronto Pearson), Exploits Valley Air Services (8K, Gander) and Sky Regional Airlines (Montréal Trudeau), to which it recently transferred fifteen E175s.
Air Canada to tender for a new partner for US-Canada routes
Air Canada Boeing 777-200LR,
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