Air Canada operates several subsidiaries and different brands today – including
Air Canada Rouge, Air Canada Express, and Air Canada Jetz. But did you know about its
other brand in the form of low-cost airline Tango? This operated for just three years.
But why did the brand cease to operate in 2004?
Air Canada entered the world of low-cost airlines in 2001, launching its new subsidiary airline Air
Canada Tango. This came about following the increasing low-cost competition in the market.
WestJet started service in Canada in 1996, offering low-cost alternatives on many similar
routes to the existing full-service airlines. Canada 3000 was also a strong competitor of Air
Canada at the time. It had operated charter flights up to 2001 but then started offering
scheduled services as well. It suddenly ceased operations though, in November 2001.
The 90s and early 2000s were a peak time for low-cost airlines around the world.
EasyJet in Europe only started in 1995. Wizz Air followed in 2003. In the US,
Frontier Airlines started flying in 1994, and Allegiant Air in 1998.
The new airline gave Air Canada opportunities to compete in the low-cost market without devaluing
the main Air Canada brand- a strategy followed by many airlines…with varied success. Air Canada has
even stuck with it long after the demise of Tango, with its low-cost a Rouge subsidiary.
Tango started service in November 2001, and the airline was based at Toronto
Pearson International Airport. Domestic routes served included Calgary, Edmonton,
Fredericton, Halifax, Montreal, Ottawa, Quebec City, Saint John, St. John’s, Vancouver, and
Winnipeg. Further afield, it focussed on holiday destinations in Mexico and the Southern US.
Tango started off operating a handful of Airbus A320s, leased from Air Canada.
From March 2002, it also added the 737-200. The airline’s A320 fleet grew steadily through
2001 and 2002 to reach 13 aircraft. Later, the A320s dominated the fleet
as many of the 737s moved over to Air Canada’s next low-cost subsidiary,
Zip, from late 2002. This might have to be a video topic for some other time!
The airline’s service peaked in late 2002 and 2003. By early 2004 it stopped flights,
and the brand was incorporated into Air Canada. Its fleet mostly was as well.
All of the remaining A320s moved to its parent airline.
These entered the main fleet, as well as the fleet of private hire operator Air Canada Jetz.
The airline ceased operations, but it would not be right to call it a failure. In fact, its operating
model was highly successful. In reality, what it did was transfer that to Air Canada.
Most of the routes flown by Tango were the same as covered by Air Canada,
and the airline simply moved to introduce lower, unbundled fare categories on mainline services.
Air Canada even adopted the name Tango for its lowest fare products for many years after 2004.
This is quite different from what it did later with Air Canada Rouge, where it focused instead
on lower-yield leisure routes. Rouge has changed since its launch in 2013,
most notably dropping its widebody aircraft and long-haul routes in 2020.
However, it still serves the routes within an airline model that Tango introduced.
Did you ever fly with Air Canada Tango? Share your experiences by leaving a comment.