Air Canada has set its sights on the ground rather than the sky with its latest move.
Driving the news: Air Canada has joined a group, called Cadence, bidding on the right to build and operate a high-frequency electric rail linking Ontario and Québec. Three groups are now vying to win the federally backed project, which could cost taxpayers as much as $12 billion to build.
- Other members of Cadence include French rail operator SNCF Voyageurs, CDPQ’s infrastructure arm, and the Canadian engineering giant AtkinsRéalis (formerly SNC-Lavalin).
- Once built, the route would run between Windsor and Québec City, hitting Toronto, Ottawa, Montréal, and other popular stops along the way.
Why it matters: Air Canada choo-choo-choosing to support a rail (a long-time enemy) is an admission that high-frequency trains are an integral part of Canada’s transit future as pressure mounts to crack down on airline emissions and reduce sprawling gridlock.
- Rail advocate Paul Langan told Global that Air Canada could lose up to 40% of its traffic to high-frequency rail, as train routes replace domestic short-haul flights.
- In Europe, Air Canada has already partnered with four major railways to offer customers joint air-and-rail tickets.
Yes, but: If Cadence wins, advocacy group Transport Action Canada fears a potential conflict of interest. It argues protections are needed to ensure Air Canada can’t gatekeep rail-air codeshares, which allow for seamless plane-to-train transfers, from rivals.—QH