Air Canada announced on 26 September that its regional airlines, AirBC and Air Nova, are to ground all ten of the BAe 146-200s they operate. The move is part of a retrenchement in the face of the drastic demand shortfall that followed the 11 September events. As part of the same move, Air Canada itself is grounding 17 DC-9s and 38 Boeing 737s and Canadian Regional, which is also now owned by Air Canada, is grounding all 19 its F28s. Air Canada has been gradually integrating its regional subsidiaries into a single carrier, but labor problems had resulted in the postponement of the launch of a new brand name for the consolidated carrier even before 11 September. Air Canada had extended the leases on the ten BAe 146s late last year.