Air Canada Jazz Adopts Fee-per-departure Model

 - May 6, 2008, 6:45 AM

Air Canada signed a new agreement with its wholly owned regional subsidiary, Air Canada Jazz, to adopt what it calls a capacity purchase model to replace the airlines’ existing revenue-sharing arrangement. The new code-share deal goes into effect August 1, when Air Canada Jazz begins accepting payments from its major partner on a per-flight basis. Under the new deal, Air Canada will assume responsibility for all scheduling, pricing and network planning, freeing its regional partner to concentrate on flight completion rates, on-time performance and cost containment.

Air Canada Jazz–composed of formerly independent regionals AirBC, Air Nova, Air Ontario and Canadian Regional Airlines–operated as Air Canada Regional until late March, when Air Canada changed its subsidiary’s name to mark the completion of a two-year consolidation process. Flying a fleet of 12 Fokker F28s, 10 BAe 146s, 54 de Havilland Dash 8-100s, 12 Dash 8-300s and five Beech 1900Ds, Air Canada Jazz in May introduced its first two Bombardier CRJ200s into scheduled service on routes from Toronto to Philadelphia, Indianapolis and Baltimore.