Air Canada is having second thoughts about launching its discount unit, dubbed "Air Canada Lite". It blames its pilots' contract, which limits a discount fleet to six aircraft unless the main fleet grows. Air Canada has scrapped all plans for capacity growth this year, which would leave Air Canada Lite too small to compete against discount rivals such as WestJet. Instead, Air Canada is raising the prospect of a joint venture with another low-cost airline.

Source: Airline Business