MONTREAL, Sept. 23, 2013 /PRNewswire/ – Air Canada today announced that it will undertake a Request for Proposal (RFP) process to select a new regional airline to operate certain existing U.S. regional transborder routes, starting in mid-2014. Select Canadian and U.S. regional carriers will be invited to participate in the RFP process and submit their respective pricing and other terms and conditions of carriage.

“The launch of a request for proposals is an important next step in our regional airline diversification strategy and ongoing cost transformation program,” said Kevin Howlett, Senior Vice President, Regional Markets. “Over the past two years, Air Canada has made significant changes to its strategy and relationship with its regional partners, now all operating under the Air Canada Express banner. Most recently, we transferred the operation of our Embraer 175 aircraft to a regional carrier whose cost structure is more in line with the U.S. regional carriers, and as low cost operators continue to grow in the rapidly evolving North American regional markets, it is critical for Air Canada to take the necessary steps to ensure its cost structure in these markets is also competitive.”

Air Canada currently has capacity purchase agreements with four regional airline partners: Jazz, Sky Regional, Air Georgian and EVAS.