http://www.bnn.ca/News/2015/3/6/Air-Canada-2015-is-the-year-of-the-Rouge.aspx

http://www.bnn.ca/News/2015/3/6/Air-Canada-2015-is-the-year-of-the-Rouge.aspx

In the current airline carrier industry there is an increasing desire from the customers for a form of comfortable luxury to be balanced against affordable flight prices.  Rouge is attempting to provide consumers with a lower cost flight option to can meet their needs.  However, a great amount of feedback has surfaced from consumers who have felt that the seats were too cramped to be comfortable and the prices offered were not significantly better than other options.  Air Canada however achieved record profit labels, raising the question of whether the gains are sustainable or born of other market forces.  Future profit growth could come from the decline in fuel prices while the lowered Canadian Dollar value may negatively impact the customer base as people may choose less international travel given their diminished buying power.
Questions to be considered:
1.    What do you expect to have a greater impact on Rouge’s future growth – the value of Canadian Dollar or fuel prices?
2.    Has the Rouge brand added sustainable value to Air Canada?

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