Amid preparations to launch a low-cost carrier division, Air Canada has hired a former AirTran Airways executive as chief operating officer.
Klaus Goersch takes on his new role as executive vice-president and chief operating officer, effective Monday.
Calin Rovinescu, president and chief executive officer, in a news release states:
"Klaus's solid track record of excellence in airline operations, his proven leadership abilities along with his experience in the low cost/low fare environment will further strengthen our executive team. I look forward to his contribution as we work to complete Air Canada's transformation to position the airline for sustainable, long-term growth in our highly competitive industry."
Air Canada said its low-cost carrier, which can use up to 50 planes, will be owned 100 per cent by the airline but operated separately. It will gradually ramp up service to destinations in Europe, the United States and the Caribbean, targeting vacation travelers.
The Star reports that Joseph D’Cruz, a professor at the Rotman School of Management, said the operations job is critical.
“The operations side of many airlines is very complex, and to run a low-cost carrier is even more complex,” D’Cruz said. “Every little aspect of operations counts. You need people with deep experience.
(This appointment) signals perhaps that Air Canada is going to pay more attention to the low-cost side of its business,” he added".