Air Canada recently announced its strategic decision to streamline its aircraft fleet, with a total of 41 Boeing 737 MAX single-aisle jets set to be transferred to its subsidiary, Air Canada Rouge, the budget arm of the airline. This exciting update was unveiled during the carrier's investor update call on December 17, 2024, as highlighted by travel portal One Mile at a Time.

Air Canada Rouge, known for its focus on operating leisure flights to various destinations in the US, Central America, and the Caribbean Sea, currently flies a fleet of 39 Airbus A320-family aircraft. In a significant move, the budget carrier is slated to take over the entire fleet of Boeing 737 MAX 8 aircraft, including the additional 12 planes on order, from its parent company.

The transition to the Boeing 737 MAX series aligns with Air Canada's goal to phase out these aircraft from its mainline fleet by 2028. The decision to transfer the planes to Rouge was driven by the 737 MAX's 20% lower operating costs per available seat compared to the aging A320-family aircraft flown by Rouge, which have an average age of 17.9 years.

To complement this fleet realignment, Air Canada plans to establish a new crew base at Vancouver International Airport on Canada's west coast by 2026. This move will enable the carrier to introduce new routes and optimize its flight offerings, including service to destinations like the Hawaiian Islands.

With the addition of the Boeing 737 MAX jets, the Air Canada Rouge fleet is expected to surpass 50 aircraft, allowing for the retirement of some older Airbus planes. The MAX aircraft are likely to undergo reconfiguration to accommodate a higher density layout, focusing on enhancing the travel experience for passengers in leisure markets.

In parallel, Air Canada continues to invest in its fleet, with a strong emphasis on the Airbus A220-300 and Airbus A321 for short to medium-haul routes. The airline's long-haul operations are centered around aircraft such as the Airbus A330-300, Boeing 777 series, and Boeing 787 Dreamliners.

As Air Canada sets the stage for the next phase of its fleet evolution, these strategic changes are poised to enhance operational efficiency and customer experience in the competitive airline industry. Stay tuned for more updates on how these developments will shape the future of air travel!