Air Canada has revealed plans to consolidate its fleet which will see its entire 41-strong fleet of Boeing 737 MAX single-aisle jets being transferred to Air Canada Rouge, the mainline carrier’s wholly-owned budget subsidiary. The fleet shakeup plans were first revealed during the airline’s latest investor update call held on December 17, 2024, as reported by travel website One Mile at a Time.
Operating as the low-cost arm of Air Canada, Rouge’s primary task is operating flights on leisure-focused routes from Canada to destinations in the US, Central America, and the Caribbean Sea. The budget carrier currently operates a fleet of 39 Airbus A320-family aircraft, comprising 18 A319s, five A320s, and 16 A321s. However, under the fleet reorganization plan, Rouge is expected to inherit the entire fleet of 41 existing Boeing 737 MAX 8 aircraft from its parent company, along with the 12 additional aircraft that the national carrier still has on order.
Air Canada has operated the Boeing 737 MAX since its first aircraft arrived from the manufacturer in December 2017. However, this era is due to come to an end by 2028, when Air Canada will no longer have the type in its fleet. Expanding on its decision to make the transfer of the planes to Rouge, Air Canada pointed out to investors that the 737 MAX has 20% lower costs per available seat flown compared to the current aging A320-family aircraft flown by Rouge, which have an average age of 17.9 years. The lower operating costs of the 737 MAX will allow Rouge to offer more competitive fares in the leisure markets in which it operates, added Air Canada.
In addition to Rouge operating the MAX jets, by 2026, the carrier intends to open an entirely new crew base at Vancouver International Airport (YVR) on the west coast of Canada. According to a graphic issued by the carrier, flights from the new base will include multiple routes to exiting markets already served by Rouge from its other bases on the Canadian East Coast and will also feature flights to the Hawaiian Islands. The graphic adds that services from the base will allow for an “optimized product providing consistent seating,” although no further details were made available.
With the transfer of the MAX aircraft, the Rouge fleet will expand from the 39 aircraft operated currently to over 50, allowing for some of the older Airbus aircraft to be retired. Additionally, the MAX aircraft are likely to be reconfigured from their current layout of 169 seats (12 business class and 153 economy class) to a higher density layout, as seen on other leisure-focused MAX 8s operated around the world that typically carry around 189 passengers in a single-class configuration.
It is expected that the timing of the Boeing 737 MAX 8s leaving the Air Canada mainline fleet for Rouge will be carefully coordinated so that there is no capacity shortfall at the parent company. The company has invested heavily in the Canadia-built Airbus A220-300 in recent years, with 34 already in service and 26 yet to be delivered. These seat 137 passengers in a two-class layout (12 business class and 125 in economy class). Additionally, the airline has been favoring the Airbus A321 for its medium-haul routes, of which it has 34 in service with a further 35 A321neos on order. Some of its older A319s and A320s will be phased out over the coming years as more A20s and A321neos are delivered.
Across its long-haul fleet, Air Canada will continue to focus its operations around its fleet of Airbus A330-300s (20), Boeing 777-200ERs (six), Boeing 777-300ERs (19), Boeing 787-8s (eight) and Boeing 787-9s (31). The carrier has 18 Boeing 787-10s on order, although as this type’s certification is delayed, the carrier has taken unprecedented measures by reinstating a pair of retired Boeing 767-300ERs back into service.