Air Canada is planning some major changes to the composition of its fleet, and it particularly impacts the company’s low cost subsidiary, Rouge. This was revealed today, during the company’s annual investor day conference.
In this post:
Air Canada Rouge will transition from A320s to 737s
Rouge is Air Canada’s low cost subsidiary, which primarily operates in leisure markets. As it stands, Air Canada Rouge operates a fleet of 40 Airbus A320-family aircraft, comprised of A319s, A320s, and A321s. Well, that fleet will look completely unrecognizable five years from now.
Air Canada currently has a fleet of 41 Boeing 737 MAX 8s, with 12 more of the jets on order. This is the carrier’s single largest narrow body aircraft type. The plan is that by 2028, Air Canada will transfer all 737 MAXs to subsidiary Rouge, meaning that there will be no more 737s in the mainline fleet.
As the company describes this decision, the 737 MAX has 20% lower costs per available per mile compared to the current A320-family aircraft that Rouge operates, so this will enhance Rouge’s competitiveness in leisure markets.
By 2026, Rouge will also open a crew base in Vancouver, in hopes of the brand expanding a lot more on the West Coast. The presentation makes reference to an “optimized product providing consistent seating,” though it remains to be seen what exactly that entails.
I have to imagine that once these planes join Rouge’s fleet, the cabin will be densified a bit. As it stands, Air Canada’s 737 MAX 8s feature 169 seats, including 16 business class seats and 153 economy class seats. 
Given the size of Air Canada’s 737 MAX fleet, this also means that the Rouge operation will be growing a bit in the coming years, since the fleet should go from around 40 jets, to well over 50 jets.
What this means for Air Canada’s mainline fleet
I can totally understand Air Canada’s desire to introduce an efficient, streamlined aircraft for its low cost subsidiary. What I find interesting is the gap that this leaves in Air Canada’s mainline fleet. Here’s Air Canada’s plan on that front:
- Air Canada is continuing to invest in Airbus A220-300s, featuring 137 seats; the airline already has 34 of those planes, with 26 more on order
- Air Canada has a fleet of Airbus A319s and Airbus A320s, but the plan is for those to be retired in the next several years, so they’re not a part of the carrier’s long term fleet plan
- Air Canada is otherwise focusing on the Airbus A321; the airline has 17 of these in its fleet, featuring 184-196 seats, and these planes are currently getting new cabins
- Air Canada has 30 Airbus A321XLRs on order, which should be delivered starting in late 2025; while these will partly be used domestically, they also have the range to operate some long haul flights
It’s interesting to see the gap between the A220 and A321. The A220 is of course a pleasure to fly, but it’s definitely on the small side for some markets. I’m curious if Air Canada plans another aircraft order for its mainline fleet (perhaps more A220s, or even Airbus A321neos), or if this will be the extent of the carrier’s narrow body fleet plans.
Bottom line
Air Canada has announced plans to fully transfer its 737 MAX fleet to low cost subsidiary Rouge by 2028. With this, we’ll see Rouge going from being an all-Airbus operator to being an all-Boeing operator, while we’ll see the Air Canada mainline narrow body fleet consisting exclusively of Airbus jets.
This all seems logical enough, as the company wants Rouge to have a competitive cost structure. I’m just curious if Air Canada has any other mainline fleet renewal plans that haven’t yet been announced.
What do you make of Air Canada shifting its 737 MAXs to Rouge?
So I guess this means our Halifax - Heathrow flight will be operated by the dreaded Rouge. Presently it's a great flight, as it's a day flight each direction; no eastbound red-eye to England. Rouge will no doubt tinker with that, to insure the transatlantic experience is as miserable as all their other flights. (Here's an example: no meals on Rouge between Barbados and Toronto because its a 'domestic flight'.)
Unless they move it to an A321XLR
Wild how poor the competition in Canadien aviation is.
I have had them try and switch me onto Rouge, on what was originally a business class, lie-flat route, for the same redemption level. Absolutely no. I will never fly Rouge, I found the mainline 737 Max’s tight enough. If they turn it to the domestic routes, I’ll be giving my business to WestJet or Porter.
You're mixing up a lot of differen things here. First, you're right, pricing redemptions the same for mainline lie-flat and for Premium Rouge is absurd and they should absolutely stop that, when they find that they're not getting away with it any more. Second, if you think you'll "punish" them by getting on Porter for your YYZ-YVR flight, good luck, you'll be the one punished. Same for Westjet, another LCC with lipstick on it. Premium...
You're mixing up a lot of differen things here. First, you're right, pricing redemptions the same for mainline lie-flat and for Premium Rouge is absurd and they should absolutely stop that, when they find that they're not getting away with it any more. Second, if you think you'll "punish" them by getting on Porter for your YYZ-YVR flight, good luck, you'll be the one punished. Same for Westjet, another LCC with lipstick on it. Premium Rouge is neither much better nor much worse than mainline J in Business Class. At least the WiFi is free LOL. Do you ever just think there's only crap?
I don't understand Rouge. Is Rouge just the domestic short haul arm of AC, and mainline AC handles long haul "profitable" routes? The Rouge maps that I have seen seem to indicate so.
I've flown on Rouge several times and never expected it. The website (either AC or 3rd party) rarely mentions Rouge but sometimes you see it later in the booking process, and sometimes it seems like a complete surprise. The Fly Rouge website link to schedules just takes you to the regular AC website. The description on that page makes Rouge sound just as good as, or even better than normal AC service. The only clue...
I've flown on Rouge several times and never expected it. The website (either AC or 3rd party) rarely mentions Rouge but sometimes you see it later in the booking process, and sometimes it seems like a complete surprise. The Fly Rouge website link to schedules just takes you to the regular AC website. The description on that page makes Rouge sound just as good as, or even better than normal AC service. The only clue I've ever gotten that Rouge is the "low cost subsidiary" is when I'm actually on the beat-up, older plane wishing I was somewhere else.
Sadly it looks as if more mainline routes will be relegated to the ghastly Rouge.
The disaster or AC fleet is epic mismanagement.
Rouge pilots can fly for mainline, so this adds to Air Canada's pathetic on time performance with its mixed fleet.
Next it will take years for AC to move it's 737s to Rouge and it's 320s are literally falling apart.
AC bought used 330s so even it's med haul feet is in shambles.
The 330s are broken down Junk needing lots of maintenance that also adds to AC's, worst on time performance in North America.
Rouge has long been the city bus side of AC, flying a lot of older/nicked up aircraft with TIGHT seating. Flew AC Rouge YUL-YQB, which is maybe one hour and the pitch was insufficient to cover the space between by hips and my knees. So, perhaps that puts the "densification" involved into context.
Basically, Rouge is designed to make mainline AC look like SQ.
Timing wise, this would likely coincide with when a cabin refresh would be required for the 737Max anyway so as they exit the A319/A320 fleet... this makes quite a bit of sense. WS uses primarily the 737 for what would be many of the same routes... when you think of it, it makes a lot of sense... but agree that there might be some sort of a gap in the fleet that has yet to solved for
I have flown in AC Business class on the 737Max (on several routes) and on the A220 from YYZ to SFO. I have to say that in Business class, I felt that the 737 was actually better and more comfortable. For Economy class, I am sure the A220 is nicer, as it is only 5 across. It is a shame, because I thought that the AC Max's were outfitted nicely and struck a nice balance of modern and comfortable.
I've noticed that lately, Air Canada has been using more and more Rouge planes and Rouge crew on routes that are not vacation destinations (such as Toronto - Ottawa, Toronto - Montreal).
I may be wrong, but it seems to me that Rouge crew (at least cabin crew) may earn less than Air Canada crews. So, in the end, it could be a labor cost saving measure. Something similar to what Lufthansa is doing in Germany.
AC has three flights a day serving YQR-YYZ, and all are on Rouge, or, as my BiL calls it, Scrooge.
That's great, that means everyone that wants to avoid the MAX and not drop from the sky should not fly Rouge.
Also noted is “Ultra Long Haul” from 2030 … calling it here, this means A350-1000. It’s just too good a plane not to have for AC
Would make sense as a 77L replacement
Like DL, they're hope hope hoping for an A220-5, etc.