Air Canada to form leisure group

Oct 2 (Reuters) - Air Canada , Canada's biggest airline, said it would form an integrated leisure group by combining its tour operator business with its planned low-cost airline.

The airline named Michael Friisdahl chief executive officer of the leisure group, which will include tour operator business Air Canada Vacations.

Air Canada had in August said it would start up a low-cost airline in 2013 to fly to holiday destinations in North America, the Caribbean and Europe.

Shares of the company were up 1.5 percent at C$1.33 on the Toronto Stock Exchange on Tuesday afternoon.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Supriya Kurane)

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