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. Last Updated: 07/27/2016

Air Canada Revamps

MONTREAL -- Air Canada plans to merge its separately run feeder airlines - Air Nova, Air Ontario and Air BC - to create a cross-country subsidiary with nearly 3,000 employees and flights to 84 destinations. The consolidated company will be allied with Air Canada's hubs and customer loyalty program and would be a formidable barrier to any would-be competitors, now that Air Canada has a near-monopoly on mainline routes with this month's takeover of Canadian Airlines.

It could even get control of Canadian Airlines' regional network, if no one buys it.

The president of the proposed regional airline, Joe Randell, said Thursday that the merger would make the three feeder airlines more efficient and able to reduce high regional fares.