Air Canada

Type: Public Company
Address: Air Canada Centre, 7373 Côte Vertu Boulevard West, Saint-Laurent, Quebec H4Y 1H4, Canada
Telephone: (514) 422-5000
Fax: (514) 422-5909
Web: http://www.aircanada.ca
Employees: 36,000
Sales: C$9.83 billion (US$6.23 billion) (2002)
Stock Exchanges: Toronto
Ticker Symbol: AC
Incorporated: 1937 as Trans-Canada Air Lines
NAIC: 481111 Scheduled Passenger Air Transportation; 481112 Scheduled Freight Air Transportation; 481211 Nonscheduled Chartered Passenger Air Transportation; 481212 Nonscheduled Chartered Freight Air Transportation; 561520 Tour Operators

Air Canada is the only national, full-service airline based in Canada. The corporation ranked as the seventh largest airline in North America and the 13th largest in the world in 2002. That year, Air Canada carried about 29 million passengers. In addition to its flagship full-service carrier, Air Canada also runs Tango, a low-fare air service operating on many Canadian and some U.S. routes; Zip, a low-fare carrier based in Calgary; and Air Canada Jazz, a regional carrier. Overall, the company serves nearly 170 destinations on five continents--but mainly North America--using a fleet of 330 aircraft, 100 of which are part of Air Canada Jazz's regional fleet. Through its membership in the Star Alliance, which also includes United Airlines, Lufthansa, Scandinavian Airlines System, and Thai Airways International, among several others, Air Canada offers service to more than 700 destinations in more than 100 countries. Air Canada provides both scheduled and chartered air transportation for passengers as well as cargo and also owns Air Canada Vacations, a major Canadian tour operator. Aeroplan, Air Canada's frequent flyer program, has more than six million members. Having survived privatization, the threat of scandal, and the industry's usual crises throughout its 65-years-plus history, Air Canada faced a whole host of challenges in the early 2000s that severely affected its financial health and led ultimately to the firm filing for bankruptcy protection in April 2003.

Under the administration of Prime Minister Mackenzie King, the Canadian government created Trans-Canada Air Lines (TCA) as a Crown corporation in 1937 to provide transcontinental airline service within Canada's borders. It was originally a wholly owned subsidiary of the government-owned Canadian National Railway Corporation. From its founding through 1959, the government-owned company had a complete monopoly on all of Canada's domestic air routes; it also had a monopoly on all trans-border routes (routes that crossed the Canadian border with the United States) until 1967. The federal Cabinet of Canada approved all of the airline's routes and fares, and government regulators issued licenses approved by the Cabinet for the airline.

But government sponsorship did not rule out competition. Canadian Pacific Limited, one of the country's railway giants, acquired and combined nine small private carriers to form Canadian Pacific Airlines (also known as CP Air), based in Vancouver, British Columbia, in the 1940s. In 1959 the Canadian government allowed CP Air to provide one flight each day in each direction between Vancouver and Montreal, Quebec. From that small bit of business, CP Air grew through 1965 to acquire an average of 12.7 percent--the total it was allowed by federal regulations--of the domestic intercontinental traffic formerly held by Air Canada. In 1967 the Canadian government further relaxed its regulations and allowed CP Air two flights per day and, by 1970, CP Air was permitted to gain 25 percent of the intercontinental traffic in Canada. Also in 1967 the Canadian government allowed CP Air, which was given the right to establish international air routes across the Pacific Ocean in 1948, to establish a route from Vancouver to San Francisco, California--the first trans-border route not flown by TCA. Despite the encroaching competition from CP Air and that airline's dominance in international routes across the Pacific Ocean, TCA held, by government fiat, a monopoly on all other international routes and intercontinental domestic air travel.

TCA adopted the name Air Canada in 1965. Government regulations set forth the next year prevented regional air carriers from competing with both Air Canada and CP Air, which were directed to work with the regional carriers to establish joint fare and commission arrangements and to cooperate on technical and servicing matters, including service to specific areas that required special equipment. Later, in 1969, the Canadian government established specific regions in which each of the five regional Canadian airlines could operate; those regulations lasted through the early 1980s.

Throughout the 1970s several pressures (many of which arose or were centered in the United States) challenged the Canadian government and the Air Canada monopoly. Larger jets for airline service provided air carriers with roomier vehicles, but high air fares, which were regulated in both the United States and Canada by federal agencies, prevented the efficient use of those vehicles. The power of consumers increased during the decade, and customers used that power to demand lower air fares from more competitive airlines. Information on how deregulated industries would perform was persuading many regulators, airline executives, and consumers that a regulated airline industry was not in the best interest of anyone. In the late 1970s these forces combined to gain the support of leading politicians in the United States. The deregulation process of the U.S. airline industry began, with Canadian politicians watching closely, especially as Canadian passengers increasingly chose U.S. airlines for their international and transcontinental flights to take advantage of lower fares and improved services.

When Parliament passed the Air Canada Act of 1978, the Crown corporation was finally subjected to the same regulations and regulatory agencies that other Canadian airlines faced, bringing it more fully into competition with CP Air and the other regional airlines that were then operating. That act ended the government's unique regulatory control over Air Canada's routes, fare structures, and services--control the government wielded over the company throughout its first 41 years of business. (The act also reorganized its ownership structure; Air Canada would no longer be a subsidiary of Canadian National Railway, becoming a direct wholly owned subsidiary of the Canadian government.) On March 23, 1979, the minister of transport removed all capacity restraints on CP Air's share of transcontinental traffic, and it was given a license to provide domestic transcontinental flights. CP Air established transcontinental service in May 1980 to compete directly with Air Canada. While these changes were occurring in its domestic competition, Air Canada was also facing increasing competition in international routes from American Airlines, British Airways, SwissAir, and Lufthansa.

By 1984 Air Canada hinted in its annual report that, to continue to compete with other international airlines, it would require a tremendous amount of new capital to replace its aging fleet of airliners with state-of-the-art jets. To upgrade its fleet, Air Canada was considering buying, between the years 1984 and 1993, more than 40 new airliners at a cost of more than C$135 million each; the company also stated that it did not believe it could finance such purchases from retained earnings. At that time, six airline companies were operating in Canada, and Air Canada, which had more than a 50 percent share of the market, owned and operated the country's only computer reservations system. This provided them with access to all of the major travel agents in Canada and enabled them to collect a fee from other airlines when their tickets were sold on the computerized system. CP Air, which was acquired by Pacific Western Airlines (an Alberta-based regional carrier) and renamed Canadian Airlines International Ltd. in the mid-1980s, established its own computerized reservation system, but in 1987 the two airlines' systems were merged into a single network called the Gemini Group Limited Partnership.

In 1985 then Transport Minister Donald Mazankowski said that the Canadian government was planning to allow Air Canada and the Canadian National Railways the freedom to operate as private companies. The Canadian public appeared to support that move. In its annual report for the year 1985, Air Canada said it was determined to resolve the challenges it faced from its competition by managing its own destiny and achieving "a standard of financial credibility that will ultimately enable the shareholder to pursue a course of private and employee equity participation." This statement pointed toward the direction the company intended to move and coincided with further relaxation of regulations that encouraged its domestic and international competitors.

The complete deregulation of Canada's airline industry was first proposed in a policy paper from Mazankowski to Parliament in July 1985. That policy was not enacted until Parliament passed the National Transportation Act of 1987, which became effective January 1, 1988. On April 12, 1988, Mazankowski, who was then the minister responsible for privatization, announced that Air Canada would be sold to the public as "market conditions permit" with an initial treasury issue of up to 45 percent of its shares. When it was announced, the sale was seen as the most ambitious act of privatization that the Canadian government had attempted thus far; Air Canada had assets of C$3.18 billion and revenues of C$3.13 billion in 1987. The sale was subjected to several conditions that were placed into the enabling legislation, which Parliament approved in August 1988.

The legislation stipulated several things: the company's headquarters would remain in Montreal, Quebec; the airline, for the indefinite future, would maintain major operational and overhaul centers at Winnipeg, Manitoba, and in Montreal and Toronto; no more than 45 percent of the company's shares would be sold and the proceeds would go to the airline, not to the government; employees would be given the first chance to buy shares in the company, small shareholders the second opportunity, followed by institutional investors and, finally, foreign investors; no individual shareholder would be allowed to hold more than 10 percent of the company's shares and foreign ownership was limited to 25 percent of the initial offering; and the government's 55 percent holding in the company would be voted in accordance with the private sector shareholders to give the company an arm's length relationship to the government.

On September 26, 1988, Air Canada filed the prospectus on its stock, stating that its net income after taxes was C$101 million for the year ended March 31, 1988. The price of the stock was set at C$8 per share. The company completed its IPO in October 1988, issuing 30.8 million shares--42.8 percent of the company's total. The company netted C$225.8 million on the C$246.2 million sale, with underwriting fees taking C$12.3 million and with the airline absorbing C$8 million in discounts to its employees. By the end of March 1989 the company's shares were trading at C$11.75 per share, and the stock hit a high of C$14.83 in August that same year.

Air Canada's efficacious move to becoming a private company was seen as a result of a successful public relations program directed by the company's chairman, Claude I. Taylor, and its president and chief executive officer, Pierre J. Jeanniot. The executives focused the public relations program on the company's employees, the media, communities, customers, and potential shareholders; this was done in two carefully structured parts--pre-announcement and post-announcement--that were designed to ensure the success of the move to privatization by emphasizing the company's strengths and competitive position as it worked to improve its service and operations.

In July 1989 the company completed its move to privatization with the filing of a prospectus for its second issue of stock. The company sold 41.1 million shares--for a total of 57 percent of its equity in the filing--at C$12 per share. Proceeds from that sale went to the government. As an indication of the issue's success, by the end of the first week after the shares were issued the company's stock was trading at C$12.75 per share. The company subsequently updated its fleet by ordering almost three dozen Airbus A320s jets. (The Canadian government later accused Brian Mulroney, prime minister at the time, of taking "kickbacks" in the deal, a charge that was eventually retracted.)

The company's operating results, however, did not reflect the enthusiastic welcome that its stock had met in the market. Air Canada reported losses of C$74 million in 1990 and C$218 million in 1991, and it reported that it had nearly two million fewer passengers in 1991 than in the previous year. The company blamed its losses and decreased passenger load on the combined effects of the economic recession and the falloff in travel that resulted from the war in the Persian Gulf. It also, however, was seen as being hurt extensively by the pressures of competition with other international carriers.

In July 1990 Jeanniot surprised his colleagues at Air Canada by announcing his retirement. Jeanniot, who spent 35 years with the company, told Traffic World magazine that he believed the time was right for him to retire: "I have done my time. A chief executive should not hang around forever." Jeanniot was replaced in early 1992 by Hollis L. Harris, a former top executive at Delta Airlines and Continental Airlines; he was named vice-chairman, president, and CEO.

The year that Harris joined Air Canada was a difficult one for his company and for the airline industry in general. Air Canada restructured its operations, eliminating five senior management positions, including four senior vice-presidents and the position of executive vice-president and chief operating officer; it also cut 250 other management positions and 100 administrative and technical support positions, all in an effort to save C$20 million a year. The restructuring was part of the move to cut operating expenses by 10 percent--C$300 million a year--by 1993 and was expected to be accompanied by a reduction of nonmanagement union employees later in 1992. The restructuring enhanced Harris's position in day-to-day operations and gave him direct responsibility for the six divisions that were formed in the restructuring. The Harris regimen would make Air Canada more competitive and, beginning in 1994, profitable once again.

The restructuring also resulted in the sale of Air Canada's "En Route" credit card operations to Diners Club of America, the selling of its Montreal headquarters building, and the relocating of its headquarters staff from downtown Montreal to Dorval Airport; in addition, the company enacted a plan to sell and lease back three of the Boeing 747-400s in its fleet. The restructuring was seen as a move to make Air Canada more efficient.

To gain further efficiencies, Air Canada proposed a merger in early 1992 with Canadian Airlines International, its primary Canadian competitor; the merger would have made Air Canada once again Canada's only international carrier. Canadian Airlines rebuffed Air Canada's merger proposal, however, and the idea was viewed as politically unpopular in Canada where it would have likely eliminated more than 10,000 jobs.

In 1994 Air Canada won long-coveted entree into the Japanese market (it had been prohibited by law from competing in Asia and South America since 1987) when the Canadian government appointed it to serve Osaka's new Kansai International Airport. The corporation took to warmer climes with relish after the signing of an "open skies" agreement between Canada and the United States in early 1995. Beginning with Atlanta, the carrier opened almost 30 new U.S. routes, mostly nonstop, within the year. They proved enduringly popular and profitable. The airline renovated its fleet of smaller aircraft with Canadair regional transports to provide flexibility on its shorter routes. Montreal and Vancouver airports were opened to U.S. carriers in 1997; Toronto followed in 1998.

Air Canada initiated code sharing agreements with U.S. carriers after gaining access to that market. Its networking took on a much larger scale with the creation of the Star Alliance in 1997, through which Air Canada, Lufthansa, Scandinavian Airlines System, Thai Airways International, and United Airlines (later joined by VARIG of Brazil) linked their routes. Each carrier also agreed to honor each other's frequent flyer miles. International fares accounted for more than half of passenger revenue, and the company continued to expand its services in this area while leveling off domestic growth.

Air Canada had record profits as well as a 60th anniversary to celebrate in 1997. As the company wooed patrons with refinements and innovations such as the Xerox Business Centres located in Maple Leaf Lounges and the Skyriders frequent flyer program for children, it reaped a net income of C$427 million on total revenues of more than C$5 billion. The airline's young fleet of 157 planes boasted one of the continent's best on-time records, carrying 40,000 passengers a day. The positive performance was tempered somewhat by a labor disruption among pilots for its regional subsidiaries. Air Canada divested itself of Northwest Territorial Airways Ltd. in June 1997 and the next month sold most of its interest in Galileo Canada Distribution Systems Inc.

Harris was succeeded by Lamar Durrett as president and CEO in May 1996. Durrett was a protégé of Harris's, having come to Air Canada with Harris in 1992 as executive vice-president and chief administrative officer; Durrett, like Harris, was an American. John Fraser succeeded Harris as chairman in August 1996.

Durrett's stint at the helm turned out to be short-lived and troubled. Despite the cost-cutting efforts of the early to mid-1990s, Air Canada remained one of the least efficient carriers in North America, and Durrett failed to move quickly enough with further efficiency initiatives. Durrett and his managers were also caught by surprise when the company's pilots went on strike in September 1998 to back up their demands for higher salaries. The strike lasted 13 days, costing Air Canada C$250 million and resulting in a loss of C$16 million for the year. Flight attendants, emboldened by their knowledge that management was desperate to avoid another strike, took the company to the brink of a walkout in July 1999, securing healthy wage increases in the process. Durrett suffered two further black eyes in 1999. In January a blizzard shut down Toronto's Pearson International Airport, and Air Canada did not respond well during the crisis, leaving thousands of angry passengers waiting for hours only to find out that their flights had been canceled. Air Canada also refused to pay fee increases that had been imposed at Pearson, and Durrett tried to get other airlines to do the same--an effort that was an embarrassing failure. By July 1999 Air Canada stock was trading at C$6.30, less than half its value 12 months earlier and more than 20 percent below its 1988 IPO price of C$8.

Durrett resigned under pressure in August 1999 and was replaced by Robert Milton, who at age 39 had been named president just three months earlier. Milton, another American, had been involved with Air Canada since 1992 when he was hired as a consultant to assist in reorganizing the airline's cargo division. Almost immediately after being appointed CEO, Milton found himself in the middle of a very public takeover battle.

By mid-1999 Canadian Airlines was in grave financial straits and verging on bankruptcy. Soon after taking the helm as CEO, Milton began pursuing a possible buyout of Canadian Airlines' lucrative international routes, but was quickly turned down. Canadian had already entered into secret negotiations with Onex Corporation, a Toronto-based leveraged buyout firm, and AMR Corporation, the parent of American Airlines and owner of a 25 percent stake in Canadian, about a possible takeover. Gerry Schwartz, head of Onex, soon started pursuing the takeover and merger of both Canadian and Air Canada. Milton responded with his own takeover bid, of Canadian Airlines, backed by Star Alliance partners United Airlines and Lufthansa. He also took Onex to court where he won a verdict that upheld a law stipulating that no single shareholder could own more than 10 percent of Air Canada. This scuttled the Onex bid, and Milton in December 1999 secured an agreement to take over Canadian Airlines at a bargain-basement price of C$61 million--but with a burdensome assumption of C$3.5 billion in Canadian Airlines debt and lease obligations. The acquisition was officially completed in July 2000, although integration moves began even earlier that year.

After discovering that Canadian Airlines was losing C$2 million per day, Milton and his managers put the integration of Canadian into Air Canada on a very fast track. The speed with which the two carrier networks were brought together triggered a period of mass chaos, particularly during the summer of 2000, when many customers were driven irate by canceled flights, departure delays, lost luggage, unhelpful agents, and other difficulties. The situation got so bad that Milton took to the airwaves in early August, promising in a series of ads that within 180 days, or by January 2001, the integration of the two carriers would be complete and the problems plaguing Air Canada would end. He did in fact meet this goal, and service gradually began to improve. Meanwhile, during 2000, the regional carriers of Air Canada and Canadian Airlines--AirBC, Air Nova, Air Ontario, and Canadian Regional Airlines--were merged into a single entity called Air Canada Regional Inc. (which was relaunched as Air Canada Jazz in April 2002).

Although Air Canada was now the sole Canadian full-service air carrier--controlling 80 percent of the nation's air-travel market and about 43 percent of the traffic between Canada and the United States--it was not without competition, and stiff competition at that. WestJet Airlines Ltd. had been operating out of Calgary since 1996, bringing to Canada the low-cost, no-frills airline concept pioneered by the very successful U.S. firm Southwest Airlines Co. Like Southwest, WestJet was a nonunion outfit, giving it a tremendous cost advantage over Air Canada and its heavily unionized workforce. It was in fact competition from WestJet that had brought Canadian Airlines to the brink of insolvency. WestJet, which also quickly established itself as one of the most profitable airlines in North America, expanded throughout western Canada during the late 1990s and then seized upon the opening offered by the Air Canada--Canadian Airlines merger to move into the eastern part of the country in the early 2000s. Milton responded in turn by launching two separate low-cost airlines. Tango began operations in November 2001 and was operated alongside the flagship Air Canada line, sharing its fleet. Zip, a low-fare carrier based in Calgary, began serving western Canada in September 2002; it was operated independently with its own management and fleet.

Competition was far from the only challenge facing Air Canada in the early 2000s. The company along with the entire North American airline industry was battered by an extremely negative operating environment. Business travel slowed down quite suddenly in late 2000 in concert with the faltering global economy and the implosion of the technology sector. The events of September 11, 2001, took a serious toll on the airline industry, and during 2002 air travel continued to be curtailed because of the ongoing economic slowdown and the threat of a U.S. war against Iraq. Air Canada consequently posted net losses of C$1.32 billion in 2001 and C$828 million in 2002. The launching of the Iraq war by the United States in early 2003, coupled with an outbreak of a different sort--that of sudden acute respiratory syndrome (SARS), which seriously affected Air Canada's Asian routes and operations at its Toronto hub--placed the company itself on the brink of bankruptcy, C$13 billion in debt. On April 1, 2003, Air Canada was forced to file for bankruptcy protection, despite several cost-cutting and capacity-reduction initiatives undertaken throughout this period of crisis. Air Canada's filing followed that of several major U.S. carriers, which had entered bankruptcy proceedings in 2002.

Air Canada initiated a host of restructuring efforts while moving toward an emergence from bankruptcy. Perhaps most crucially, the company attempted to reduce its annual operating expenses by 25 percent, or C$2.4 billion. New labor agreements were reached with the unions that involved wage cuts, layoffs, and more flexible work rules. One-quarter of the workforce, or about 10,000 workers, were likely to lose their jobs. Another important move was Air Canada's seeking of an infusion of at least C$700 million (US$517 million) in new equity from an outside investor. In September 2003 the corporation announced two finalists in the bidding for a major Air Canada stake: Victor Li, a powerful Hong Kong businessman with Canadian citizenship, and New York private-equity firm Cerberus Capital Management, L.P. Putting aside the pending emergence from bankruptcy, Air Canada faced the longer term challenge of finding a new business model under which it could successfully compete with WestJet and other discount upstarts.

Principal Subsidiaries

Jazz Air Inc.; ZIP Air Inc.; Aeroplan Limited Partnership; Touram Inc.; Wingco Leasing Inc.; Air Canada Capital Ltd.; Destina.ca Inc.

Principal Divisions

Passenger Operations; Cargo Operations; Air Canada Technical Services.

Principal Competitors

WestJet Airlines Ltd.; AMR Corporation; Delta Air Lines, Inc.; Continental Airlines, Inc.; UAL Corporation.

Further Reading

"Calling the Tune," Flight International, September 2, 2003, p. 37.

Came, Barry, "'Straight Out of Kafka': Mulroney Lashes Out at the Federal Government's Allegations," Maclean's, April 29, 1996.

Collins, David H., Wings Across Time: The Story of Air Canada, Toronto: Griffin House, 1978.

Dawson, Phil, "Air Canada: Sixty Years of Innovation and Progress," Airways, January/February 1998, pp. 19-27.

DeCloet, Derek, and Sean Silcoff, "Be Nice for a Change," Canadian Business, October 8, 1999, pp. 37-38, 40.

Enchin, Harvey, Geoffrey Rowan, and Stephen McHale, "An Airline Merger Fails to Fly," Globe and Mail, August 24, 1992, p. A1.

Flint, Perry, "The Business Is Actually Fun Again!," Air Transport World, June 1995.

------, "The World Has Changed Forever," Air Transport World, March 2003, pp. 22-24, 26.

Foster, Cecil, "Air Canada Searching for a New CEO After Jeanniot's Surprise Retirement," Traffic World, August 13, 1990.

------, "Tough Guys Don't Cuss," Canadian Business, February 1995.

Gibbon, Ann, "Harris, Managers Take Pay Cut," Globe and Mail, February 23, 1993, p. B1.

Goldenberg, Susan, Troubled Skies: Crisis, Competition and Control in Canada's Airline Industry, Whitby, Ont.: McGraw-Hill Ryerson, 1994.

Libin, Kevin, "Hard Reign," Canadian Business, May 26, 2003, pp. 107-10.

Macklem, Katherine, "Air Rage: After Months of Chaos, Air Canada's Tough-Guy Boss Insists the Worst Is Over," Maclean's, November 6, 2000, p. 68.

McKenna, Edward, "Air Canada Restructures," Aviation Week and Space Technology, May 4, 1992.

McMurdy, Deirdre, "The Style of Dixie," Maclean's, July 6, 1992, p. 96.

Millan, Luis, "Can No. 2 Fly Higher?," Canadian Business, May 29, 1998, pp. 50-53, 55.

Nicol, John, "Unfriendly Skies," Maclean's, May 22, 2000, p. 34.

Ouellet, Francine Vallee, "The Privatization of Air Canada," Canadian Business Review, Winter 1989, pp. 19+.

Oum, Tae Hoon, W.T. Stanbury, and Michael W. Tretheway, "Airline Deregulation in Canada and Its Economic Effects," Transportation Journal, Summer 1991.

Pigott, Peter, National Treasure: The History of Trans Canada Airlines, Madeira Park, B.C.: Harbour Publishing, 2001.

Shiffrin, Carole A., "Aggressive Start for Canadian Carriers in Open Skies Pact," Aviation Week and Space Technology, March 25, 1996.

Smith, Philip, It Seems Like Only Yesterday: Air Canada, the First 50 Years, Toronto: McClelland and Stewart, 1986.

Tower, Courtney, "Air Canada Charting Its Own Unique Flight Path(s)," Journal of Commerce and Commercial, August 13, 1997, p. 14A.

Turner, Craig, "Air Canada's Aboot-Face," Los Angeles Times, August 8, 1996.

Van Velzen, Andrew, and Craig Turner, "Canada Settles Suit, Apologizes to Ex-Premier; Courts," Los Angeles Times, January 1, 1997.

Verburg, Peter, "Dogfight," Canadian Business, September 17, 2001, p. 23.

— Bruce Vernyi

Air Canada

IATA AC ICAO ACA Callsign AIR CANADA
Founded	1937(as Trans-Canada Airlines)
Hubs	Calgary International Airport Montréal-Trudeau International Airport Toronto Pearson International Airport Vancouver International Airport
Focus cities	Edmonton International Airport Halifax Stanfield International Airport Ottawa Macdonald-Cartier International Airport
Frequent flyer program	Aeroplan
Member lounge	Maple Leaf Lounge
Alliance	Star Alliance
Subsidiaries	Air Canada Cargo Air Canada Ground Handling Services Air Canada Jetz Air Canada Vacations Aveos Fleet Performance Inc.
Fleet size	202 (+37 orders)
Destinations	96 excl.subsidiaries and code-shares
Company slogan	At Your Fingertips
Parent company	ACE Aviation Holdings Inc.
Headquarters	Montreal, Quebec
Key people	David Richardson (Chairman) Calin Rovinescu[1](President & CEO)
Website	www.aircanada.com

Air Canada (TSX: AC.A, TSX: AC.B) is Canada's largest airline and flag carrier. The airline, founded in 1936, provides scheduled and charter air transportation for passengers and cargo to 96 destinations worldwide. Its largest hub is Toronto Pearson International Airport in Ontario. Its main base is Montreal-Pierre Elliott Trudeau International Airport in Quebec. Air Canada is the world's 8th largest passenger airline by fleet size, and the airline is a founding member of Star Alliance, an alliance of 21 member airlines formed in 1997.^[2][3] Air Canada's corporate headquarters are located in the Saint-Laurent area of Montreal, Quebec.^[4] The airline's parent company is the publicly traded firm ACE Aviation Holdings. Air Canada had passenger revenues of $9.7 billion in 2008

Canada's national airline originated from the Canadian federal government's 1936 creation of Trans-Canada Airlines (TCA), which began operating its first transcontinental routes in 1938. In 1965, TCA was renamed Air Canada following government approval. Following the 1980s deregulation of the Canadian airline market, the airline was privatized in 1988. In 2001, Air Canada acquired its largest rival, Canadian Airlines. In 2006, 34 million people flew with Air Canada as the airline celebrated its 70th anniversary.

Air Canada operates a fleet of Boeing 777, Boeing 767, and Airbus A330 wide-body jetliners on long-haul routes, and utilizes Airbus A320 family aircraft, including the A319, A320, and A321 variations and Embraer E170/E190 family aircraft on short-haul routes. The carrier's subsidiaries include Air Canada Cargo, ground support services, and regional airline partners, including Air Canada Jazz (which is now completely spun-off) and Air Canada Jetz. Air Canada also provides vacation packages to over 90 destinations via Air Canada Vacations. Together with its regional carriers, the airline operates on average more than 1,375 scheduled flights a day.^[5]

Contents 1 History 1.1 Trans-Canada Airlines 1.2 1970s 1.3 The 1980s and 1990s 1.4 21st century 1.4.1 Bankruptcy and restructuring 1.4.2 Fleet modernization 1.4.3 Project XM 1.5 Financial problems 2 Destinations 3 Fleet 3.1 Historic fleet 4 On board 4.1 Executive First Suites (international) 4.2 Executive Class (domestic) 4.3 Economy Class (international) 4.4 Economy Class (domestic) 4.5 Cabin crew 5 Maple Leaf Lounge 6 Aeroplan 7 Subsidiaries 7.1 Air Canada Cargo 7.2 Air Canada Ground Handling Services 7.3 Aveos Fleet Performance Inc. 7.4 Air Canada Vacations 7.5 Regional partners 7.5.1 Air Canada Jetz 7.6 Former subsidiaries 8 Headquarters 9 Codeshare agreements 10 Incidents and accidents 11 Executives 12 References 13 External links

History

Trans-Canada Airlines

L-10A Electra "CF-TCC" in Trans-Canada Air Lines livery at the Western Canada Aviation Museum.

Air Canada's predecessor, Trans-Canada Airlines (TCA), was created by legislation of the federal government as a subsidiary of Canadian National Railway (CNR) on 10 April 1936. The newly created Department of Transport under Minister C. D. Howe desired an airline, under government control, to link cities on the Atlantic coast to the Pacific coast. Using $5 million (CAD) in government seed money, two Lockheed L-10 Electras and one Boeing Stearman biplane were purchased from Canadian Pacific Airlines.^[6] Experienced airline executives from United Airlines and American Airlines were brought in.^[7]

Passenger operations began on 1 September 1937, with an Electra carrying two passengers and mail from Vancouver to Seattle, a $14.20 round trip.^[7] On 1 July 1938, TCA hired its first flight attendants.^[8] Transcontinental routes from Montreal to Vancouver began on 1 April 1939, using 12 Lockheed L-14 Super Electras and six Lockheed L-18 Lodestars.^[6] By January 1940 the airline had grown to about 500 employees.^[8]

Air Canada DC-8 in 1964-1990s livery landing in Zurich in 1985.

In 1942, Canadian Pacific Airlines suggested merging with TCA. Prime Minister Mackenzie King rejected the proposal and introduced legislation regulating TCA as the only airline in Canada allowed to provide transcontinental flights. With the increase in air travel after World War II, CP Air was granted one coast-to-coast flight, and a few international routes.^[7]

Originally headquartered in Winnipeg, which was also the site of the national maintenance base, the federal government moved the headquarters to Montreal in 1949; the maintenance base later also moved east. With the development of the ReserVec in 1953, Air Canada became the first airline in the world to use a computer reservation system with remote terminals.

By 1964, TCA had grown to become Canada's national airline, and in 1964 Jean Chrétien submitted a private member's bill to change the name of the airline from Trans-Canada Airlines to Air Canada. This bill failed, but it was later resubmitted and passed, with the name change taking effect on 1 January 1965.^[6]

1970s

Place Ville-Marie, which previously had Air Canada's headquarters

In 1975 Air Canada was headquartered at 1 Place Ville-Marie in Montreal.^[9]

In the late 1970s, with reorganization at CNR, Air Canada became an independent Crown corporation.

The 1980s and 1990s

In the 1980s Air Canada's debt grew as it upgraded its fleet and purchased regional airlines such as Air BC and Air Nova. A recession also added to yearly losses, $15 million in 1982.^[7] Deregulation of the Canadian airline market, under the new National Transportation Act, 1987 officially opened the airline market in Canada to equal competition.^[10] In 1988 Air Canada was privatised, and 43% of its shares are sold on the public market.^[6]

On 7 December 1987, Air Canada became the first airline in the world to have a fleet-wide non-smoking policy,^[11] and in 1989 became completely privatised.^[6] It sold the enRoute card business to Diners Club in 1992.^[12] Air Canada is a founding member of the Star Alliance, which was launched in May 1997. The airline code-shares with several of the alliance's members.

Airbus A330-343X in Star Alliance livery

On 2 September 1998 pilots for Air Canada launched the company's first pilots' strike.^[13] At the end of 1999 the Canadian government relaxed some of the aviation regulations, aimed at creating a consolidation of the Canadian airline industry.

21st century

In January 2001 Air Canada acquired Canada's second largest air carrier, Canadian Airlines, subsequently merging the latter's operations into its own. As a result, Air Canada became the world's twelfth-largest commercial airline.^[6]

Bankruptcy and restructuring

On 1 April 2003, Air Canada filed for bankruptcy protection; it emerged from this protection on 30 September 2004, 18 months later.^[14]

1994-2004 livery on a Boeing 767-300ER

During the period of bankruptcy protection, the company was subject to two competing bids from Cerberus Capital Management and Victor Li. The Cerberus bid would have seen former Prime Minister Brian Mulroney installed as chairman, being recruited by Cerberus' international advisory board chair Dan Quayle, himself the former vice president of the United States. Cerberus was rejected because it had a reputation of changing existing employee pension agreements, a move strongly opposed by the CAW. At first, Air Canada selected Victor Li's Trinity Time Investments, which initially asked for a board veto and the chairmanship in return for investing $650 million in the airline. Li, who holds dual citizenship from Canada and Hong Kong, later demanded changes to the pension plan (which was not in his original takeover bid), but since the unions refused to budge, the bid was withdrawn.

Finally, Deutsche Bank unveiled an $850-million financing package for Air Canada, if it would cut $200 million in annual cost cutting in addition to the $1.1 billion that the unions agreed on in 2003. It was accepted after last-minute talks between CEO Robert Milton and CAW president Buzz Hargrove got the union concessions needed to let the bid go through.^[6][15][16]

In October 2004, Canadian singer, Celine Dion became the face of Air Canada, hoping to relaunch the airline, and draw in a more international market after an eighteen month period of bankruptcy protection.^[17] She recorded her single, You and I, which subsequentely appeared in several Air Canada commercials.^[18]

ACE Aviation Holdings is the new parent company under which the reorganised Air Canada is held.^[19]

Boeing 777-300ER C-FIVS "Olympic Mural" lands at Montréal-Pierre Elliott Trudeau International Airport

Fleet modernization

On 31 October 2004, the last Air Canada Boeing 747 flight landed in Toronto from Frankfurt as AC873, ending 33 years of 747 service with the airline. The Boeing 747-400 fleet was replaced by the Airbus A340 fleet.^[20]

On 19 October 2005, Air Canada unveiled a new aircraft colour scheme and uniforms. A Boeing 767-300 was painted in the new silver-blue colour, and the green tail was replaced with a new version of the maple leaf known as the 'Frosted Leaf.'

On 9 November 2005, Air Canada entered into an agreement to renew its widebody fleet with Boeing by purchasing 18 Boeing 777s (10 -300ERs, 6 -200LRs, 2 777 Freighters), and 14 Boeing 787-8s. It also placed options to purchase an additional 18 Boeing 777s and 46 Boeing 787-8s and -9s.^[21] All of the 777s will be powered by the GE90-115B engine, and the 787-8s, by the GEnx engine.^[22] Deliveries of the 777s began in March 2007 and deliveries of the 787s are to begin in 2012. As the 777s are delivered, and as the 787s are delivered, it will gradually retire all Boeing 767s and A340s.^[23]

Air Canada has placed firm orders for 37 Boeing 787 jetliners

On 24 April 2007, Air Canada announced that it has exercised half of its options for the Boeing 787 Dreamliner. The firm order for the Dreamliners is now at 37 plus 23 options, for a total of 60. This makes Air Canada the largest customer of the Dreamliner in North America and the third largest in the world (behind Qantas and All Nippon Airways). It also announced that it has cancelled orders for two Boeing 777Fs. In November 2007, Air Canada announced that it will lease an additional Boeing 777-300ER from ILFC. Air Canada has now taken delivery of the 18 Boeing 777s on order (12 -300ERs, 6 -200LRs) and still holds options for 16 more, totaling 34.^[24][25]

Air Canada has also taken delivery of 15 Embraer 175s and 45 Embraer 190s. It holds options on an additional 60 Embraer 190s^[26] These aircraft are being used to expand its intra-Canada and Canada/USA routes. Additionally, some of the Embraer 190s will replace older A319/A320s.

Project XM

Started in July 2006, and now completed, Project XM: Extreme Makeover, is a $300-million aircraft interior replacement project to install new cabins on all aircraft. New aircraft such as the Boeing 777 are being delivered with the new cabins factory installed.^[27]

The longest ranged airliner in the world, the Boeing 777-200LR

New cabin features include:^{[28][29][30][31][32]}

• In Executive First, new horizontal fully-flat Executive First Suites (on B767's, B777's and A330's).
• New cabins in all classes on all aircraft.
• Personal AVOD (8.9 in/230 mm touch-screen LCD) in Economy class (domestic and international) and Executive Class (domestic). Larger AVOD (12 in/300 mm touch-screen LCD) equipped with noise-cancelling Sennheiser headphones available in Executive First Suites.
• Interactive games at all seats.
• Plugs for laptops in both classes.
• USB ports to recharge electronic devices.
• USB ports for game controllers.
• XM Radio Canada available at every seat.

Financial problems

Since the late 2000s, Air Canada has been facing a number of financial difficulties, including the global recession, leading to speculation that it could file for bankruptcy.^[33]

President and CEO Montie Brewer was replaced by Calin Rovinescu effective 1 April 2009.^[34] Rovinescu would be the first Canadian President since Claude Taylor in 1992. Rovinescu was Air Canada's chief restructuring officer during its 2003 bankruptcy, and is reported to be "an enforcer".^[35]

Destinations

Airbus A330-300 landing at London Heathrow Airport.

Air Canada check-in facilities at Vancouver International Airport.

Main article: Air Canada destinations

Air Canada flies to 15 domestic destinations and 81 international destinations in 33 countries (including British overseas territories, Kingdom of the Netherlands, Overseas departments and territories of France and United States territories) across Asia, Americas, Europe and Oceania.

Air Canada has flown a number of 5th freedom routes (passenger and cargo rights between 2 non-Canadian destinations), only one of which is still operated (Santiago-Buenos Aires, during the winter season). Past 5th freedom routes have included: London Heathrow-Bombay-Singapore, London Heathrow-Delhi, London Heathrow-Nice, London Heathrow-Dusseldorf, Zurich-Delhi, Paris-Geneva, Honolulu-Sydney, and Honolulu-Melbourne

New Routes by Air Canada & Air Canada Jazz ^{[36][37][38][39]}

Route	Start Date	Aircraft	Notes
Montreal-Houston	30 November	Bombardier CRJ705	Daily
Calgary-Honolulu	5 December	Boeing 767-300ER	2x weekly
Calgary-Maui	5 December	Boeing 767-300ER	3x weekly
Montreal-Fort Myers	6 December	Airbus A319	weekly
Montreal-Samana/El Catey	19 December	Airbus A319	weekly
Toronto-La Romana	19 December	Airbus A319	weekly
Ottawa-Turks & Caicos	21 December	Airbus A319	weekly
Montreal-Puerto Vallarta	25 December	Airbus A319	weekly
Vancouver-Varadero	25 December	Boeing 767-300ER	weekly
Halifax-Tampa	8 February	Airbus A319	weekly
Halifax-Samana/El Catey	11 February	Airbus A319	weekly
Calgary-Tokyo Narita	27 March	Boeing 767-300ER	3x weekly [seasonal]
Ottawa-Iqaluit	28 March	Bombardier CRJ705	Daily
Montreal-Brussels	12 June	Boeing 767-300ER	Daily
Montreal-Athens	3 June	Boeing 767-300ER	3x weekly [seasonal]
Montreal-Barcelona	4 June	Boeing 767-300ER	3x weekly [seasonal]
Toronto-Athens	4 June	Boeing 767-300ER	3x weekly [seasonal]
Toronto-Barcelona	3 June	Boeing 767-300ER	3x weekly [seasonal]

On November 9, Air Canada announced that it's regional partner, Air Canada Jazz, will begin daily, nonstop service from Ottawa to Iqaluit. With this new service, Air Canada and its partners will serve every province and territory in Canada.

Fleet

The Air Canada fleet consists of 202 aircraft, as of 14 August 2009.^[28] All aircraft are now fitted with the new interior, except 3 B767-300ERs, which will soon service all economy class routes to Athens and Barcelona. The new interior is a revamp of the cabin and the installation of individual video displays in both executive first and economy classes.

Air Canada Fleet

Aircraft	Total	Orders	Options	Passengers (Executive/Economy)	Routes
Airbus A319	35	0	0	120 (14/106)	North America, Caribbean
Airbus A320	41	0	0	146 (14/132)	North America, Caribbean
Airbus A321	10	0	0	174 (20/154)	North America, Caribbean
Airbus A330-300	8	0	0	265 (37/228)	Atlantic, Pacific, Domestic
Boeing 767-300ER	30	0	0	191 (25/166) 211 (24/187) 244 (0/244)[39]	Atlantic, Pacific, South America, Middle East, Hawaii, North American, Domestic
Boeing 777-200LR	6	0	18[40]	270 (42/228)	Atlantic, Pacific
Boeing 777-300ER	12	0		349 (42/307)	Atlantic, Pacific, Domestic, South America
Boeing 787-8	0	37	23[41]	TBA	Atlantic, Pacific, South America, Domestic To enter service second half 2013[42]
Embraer 175	15	0	0	73 (9/64)	North America
Embraer 190	45	0	60[26]	93 (9/84)	North America, Caribbean
Total	202	37	101

^{*Executive Class is offered on domestic flights, Executive First on international flights.}

• Air Canada has an average fleet age of 9.2 years, as of August 2009.^[43]
• Air Canada was the first North American airline to operate the Embraer E175, Airbus A319, A340-300, A340-500, Boeing 777-200LR and Boeing 777-300ER aircraft.

Air Canada Airbus A319-100.	Air Canada Airbus A320-200.	Air Canada Airbus A321-200.	Air Canada Airbus A330-300.
Air Canada Boeing 767-300ER.	Air Canada Boeing 777-300ER.	Air Canada Embraer 175.	Air Canada Embraer 190.

Historic fleet

In 1963, Air Canada claimed to be the first major air carrier to have adopted turbine technology on its entire fleet for lower maintenance costs and higher productivity. It also claimed to be the first world airline to introduce jet freighter service using DC-8 equipment.^[11][44]

Air Canada was also one of the first airlines to have its entire fleet of unpressurised aircraft equipped with fixed oxygen systems for use by flight crew and passengers, using the rebreathing bag principle.

• Air Canada's Airbus A340-500s (C-GKOL, fin 951 and C-GKOM, fin 952) were retired in August 2007 and replaced by Boeing 777-200LRs. They were then leased to TAM Airlines.^[45]
• Air Canada's Airbus A340-300s were retired on 20 November 2008 when it landed in Montreal from London and replaced by Boeing 777-300ERs.^[45]
• Air Canada's Boeing 767-200ER fleet was retired from service by the end of 2008.
• The Boeing 767 involved in the Gimli incident (known as the "Gimli Glider") remained in service with Air Canada until it retired in 2008. The aircraft (C-GAUN) now sits at the Mojave Spaceport in California.^[46]
• The McDonnell Douglas DC-10 aircraft operated from 1971-2001 were owned by Canadian Airlines.

Boeing 767-200ER, retired 2008.

Airbus A340-300, retired 2008.

The following is a list of aircraft that Air Canada has operated since 1937, and are now no longer in the fleet.

Air Canada Operated Types

Type	Used	Reference
Airbus A340-300	1995-2008	[47]
Airbus A340-500	2004-2007	[48]
Avro Lancastrian	1943-1947	[47]
BAe 146-200	1990-2005	[47]
Boeing 727-200	1974-1992	[47]
Boeing 737-200	1976-2004	[47]
Boeing 747-100	1971-1998	[47]
Boeing 747-200M (Combi)	1975-1999	[47]
Boeing 747-400	1990-2003	[47]
Boeing 747-400M (Combi)	1990-2004	[47]
Boeing 767-200(ER)	1983-2008	[47]
Bristol Freighter	1953-1955	[47]
Canadair North Star	1946-1961	[47]
Douglas DC-3	1945-1963	[47]
Douglas DC-8-40 -50 -60 -70	1960-1983	[47]
McDonnell Douglas DC-9-30	1966-2002	[47]
McDonnell Douglas DC-10	1971-2001	[47]
Fokker F28	1986-2004	[47]
Lockheed Super Constellation	1954-1963	[47]
Lockheed L-1011 -1 -15 -100 -500	1973-1996	[47]
Lockheed Model 10 Electra	1937-1941	[47]
Lockheed Model 14 Super Electra	1941-1949	[47]
Lockheed Model 18 Lodestar	1941-1949	[47]
Stearman	1937-1939	[47]
Vickers Vanguard	1961-1972	[47]
Vickers Viscount	1955-1974	[47]

On board

Air Canada has two classes of service on all aircraft. On longhaul international routes, Executive First and Economy Class are offered. Shorthaul and domestic routes feature Executive Class and Economy Class.

Air Canada Jazz features two classes of service, Executive and Economy Class, on CRJ-705 aircraft only. All other Jazz aircraft are one class service (Economy Class).

Executive First Suites (international)

Executive First Suites.

Executive First / Executive First Suites is Air Canada’s international business class product.

Executive First Suites (Project XM) are available on all A330-300, B777-300ER and B777-200LR aircraft and all but three B767-300ER aircrafts. The original Executive First class is available on the other three B767-300ER aircraft.

Executive First Suites (Project XM) feature electronic flat beds, in a 1–1–1 (B767-300ER and A330-300s) or 1–2–1 (all other aircraft) herringbone configuration with a 21-inch (0.533 m) seat width and a 6-foot-3-inch (1.91 m) seat pitch. The configuration is similar in layout to Virgin Atlantic's Upper Class Suite and Air New Zealand's Business Premier Class product. Entertainment is personal AVOD (Audio Video On Demand), while music is provided by XM satellite radio. Self-service bar areas and mood lighting are available on all B777-300ER and B777-200LR aircraft.

Executive First (Original) features electronic recliner seats reclining to 151°, with a width of 21 inches (0.53 m) and a pitch of 57 to 60 inches (1.4 to 1.5 m). Seat configuration is 1–2–2 or 2–2–1 seating on the 767-300ER aircraft, depending on tail fin. Entertainment provided is personal DVD player.

Executive First in-flight meal.

Executive Class (domestic)

Executive Class is Air Canada’s North American domestic first-class product.

Seat configuration varies between 1–2 (Embraers and Canadair-705s) or 2–2 (Airbuses). Recline is around 120° (Embraers and Canadair-705s) or 124° (Airbuses), with a width of 20 inches (0.51 m) (Embraers and Canadair-705s) or 21 inches (0.53 m) (Airbuses) and a pitch of 37 inches (0.94 m) (Canadair-705s) to 39 inches (0.99 m) (Embraers and Airbuses).

All seats feature AVOD and the new style cabin interiors. Music is provided by XM Satellite Radio.

Economy Class (international)

On-demand enRoute in-flight entertainment in Economy Class.

Dinner in international Economy Class.

Seats are pitched 31 inches (0.79 m) to 34 inches (0.86 m) with a width of 17.2 inches (0.44 m) to 18.5 inches (0.47 m) and a recline to around 6 inches (0.15 m).

On aircraft fitted with Economy Class (Project XM), entertainment is personal AVOD (audio-video on demand). On Economy Class (Original) aircraft, main screen entertainment is offered. Music on both types is provided by XM Satellite Radio.

Economy Class (domestic)

For flights to North America, Sun destinations, and the Caribbean, food and beverage is provided via the Onboard Café:

Cabin crew

Air Canada has made a change in uniform by changing the dark green for a midnight blue colour. The uniforms were designed by Canadian fashion designer Debbie Shuchat, at a presentation in the Toronto Pearson International Airport hangar, Celine Dion helped the newly-solvent airline debut its new image.^[49]

Maple Leaf Lounge

These lounges are open to passengers holding Executive First, or Executive Class tickets. Super Elite, and Star Alliance Gold passengers can also use the lounges. Prestige passengers may have access for a small fee, and so can members of Air Canada Maple Leaf Club, who pay for an annual membership.^[50] Select fare (Tango Plus & Latitude) and destination combinations purchased on Air Canada's website will also be given the option to add Maple Leaf Lounge access at the time of ticket holding.

Aeroplan

Main article: Aeroplan

Aeroplan is Air Canada's frequent flier program. Miles are awarded to members, and can be used to purchase tickets on any Star Alliance airline, or other partners, such as some hotel chains. Unlike competing frequent flyer miles however, members must use their miles in a timely fashion, as the credits expire annually (if no transactions occurred within that year).

Subsidiaries

Air Canada Cargo

Please help improve this section by expanding it. Further information might be found on the talk page.

In Toronto, a new cargo terminal was completed in early 2002 which features modernised inventory and conveyor systems.^[51]

Air Canada Ground Handling Services

Air Canada Ground Handling Services (ACGHS) provides ground handling services to Air Canada, Jazz and a number of other carriers at their Canadian and US stations, but mainly at Canadian stations. Services covered include "above and below the wing" passenger and baggage handling services and ancillary services such as de-icing, ground support and equipment maintenance.^[52] (Subsidiary of Air Canada)^[53][54]

Aveos Fleet Performance Inc.

Formerly ACTS (Aero Technical Support & Services Inc.), Aveos is a full-service Maintenance, Repair and Overhaul (MRO) organisation that provides airframe, engine and component maintenance and various ancillary services to more than 100 customers. Major bases are in Montreal, Toronto, Winnipeg and Vancouver.

ACE Aviation Holdings Inc. (TSX:ACE.A) owns 75 per cent of Air Canada (TSX:AC.B) and 27.8 per cent of ACTS, after selling its remaining stake in 2007 to private equity firms Kohlberg Kravis Roberts and Co. and Sageview Capital for $723 million.

On 23 September 2008, ACTS, formerly Air Canada Technical Services, changed its name to Aveos Fleet Performance Inc. to reflect its new ownership structure. Air Canada remains its largest customer.^[55]

Air Canada Vacations

Air Canada Vacations offers sun, cruise and leisure vacation packages to the Caribbean, Florida, Hawaii, Mexico, Las Vegas, Central and South America, and Asia. (Subsidiary of Air Canada)^[54][56]

Regional partners

Air Canada's regional partners include Air Canada Jazz, Exploits Valley Air Services (EVAS),^[57] Air Georgian, and Central Mountain Air.

Air Canada Jetz

Launched in 2002, Air Canada Jetz is a charter service targeting sports teams, professional entertainers, and corporations. Air Canada Jetz fleet consists of 5 A320 aircraft in an all business class configuration.^[58]

Former subsidiaries

• In 2001, Air Canada consolidated Air BC, Air Nova, Air Ontario and Canadian Regional Airlines into Air Canada Jazz. Air Canada Jazz was spun-off starting in November 2006. ACE Aviation Holdings is no longer a shareholder of Jazz, making Jazz Air an independent company.^[59]

• In 2002, Air Canada launched Zip, a discount airline to compete directly with WestJet on routes in Western Canada. Zip operated ex-Canadian Airlines International 737-200's as a separate airline with its own staff and brightly painted aircraft. It also was disbanded in 2004.^[60]

• On 1 November 2001, Air Canada launched Air Canada Tango, designed to offer no-frills service and lower fares using a dedicated fleet of 13 Airbus 320's in an all economy configuration of 159 seats. In Canada, it operated from Toronto to Vancouver, Calgary, Edmonton, Winnipeg, Ottawa, Montreal and Halifax. In addition, it operated non-stop service between Toronto and Fort Lauderdale, Orlando and Tampa; as well as non-stop service between Montreal and Fort Lauderdale and Orlando.^[61] Tango was intended to compete with Canada 3000.^[62] The Tango service was dissolved in 2004. Air Canada now calls its lowest fare class "Tango" (Tango and Tango Plus), paying homage to the low-cost experiment.

• Aeroplan is Air Canada's loyalty marketing program operated by Groupe Aeroplan Inc. Group Aeroplan Inc. was spun-off from Air Canada.

Headquarters

Air Canada 777-300ER overflies Air Canada Centre, the company's headquarters in Saint-Laurent, Montreal.

Air Canada Centre,^[63] also known as La Rondelle ("The Puck" in French), is the corporate headquarters of Air Canada, located on the grounds of Montréal-Pierre Elliott Trudeau International Airport and in Saint-Laurent, Montreal. In 1994 David Israelson of the Toronto Star described the facility as "ultra modern."^[64] In 1990 the airline announced that it was moving its headquarters from Downtown Montreal to the airport to cut costs.^[65] In 2004 the company said that it has no plans to move its headquarters back to Downtown Montreal.^[66]

Codeshare agreements

Air Canada has codeshare agreements with:^[67]

Air China * Air New Zealand * Air One ANA * Asiana Airlines * Austrian Airlines * Avianca BMI * Continental Airlines Corsairfly Egypt Air EVA Air Japan Airlines Jet Airways LOT Polish Airlines *

Lufthansa * Mexicana Qantas Scandinavian Airlines System * Shanghai Airlines * Singapore Airlines * Spanair * Swiss International Air Lines * TAM Airlines TAP Portugal* Thai Airways International * Turkish Airlines * United Airlines *

Note: * indicates Star Alliance partners; Air Canada is one of the founding members of Star Alliance.

Incidents and accidents

Date	Flight number	Information
29 November 1963	Flight 831*	McDonnell Douglas DC-8, stalled on takeoff out of Montreal-Dorval International Airport. All 118 lives were lost on board, making it one of the deadliest air disasters in Canadian history.[68] *Company was known as Trans-Canada Air Lines in 1963.
13 June 1964		Vickers Viscount CF-THT of was damaged beyond economical repair when it crash-landed at Toronto Pearson International Airport after the failure of two engines on approach.[69]
19 May 1967		McDonnell Douglas DC-8, crashed and burned on a training flight while making a three-engine landing at Ottawa, Ontario. All 3 crew members were killed. There were no passengers on the flight.[70]
11 September 1968		A Vickers Viscount of Air Canada was reported to have been hijacked by a Cuban passenger.[71]
7 September 1969		Vickers Viscount CF-THK was damaged beyond economic repair by a fire which occurred on take-off from Sept-Îles Airport. The aircraft landed back at Sept-Îles but one passenger was killed in the fire.[72]
1 March 1970		Vickers Viscount CF-THY of collided in mid-air with Ercoupe 415 CF-SHN on approach to Vancouver International Airport. The Ercoupe pilot was killed.[73]
5 July 1970	Flight 621	McDonnell Douglas DC-8, exploded from a fuel line rupture caused by engine 4 striking the runway in Toronto, Ontario during the first landing attempt. All 109 passengers/crew were killed.[74]
21 June 1973		McDonnell Douglas DC-8 caught fire and was burnt out during refueling at Terminal 2, Toronto, Ontario; no fatalities.[75]
26 June 1978	Flight 189	McDonnell Douglas DC-9, overran the runway in Toronto after a blown tire aborted the takeoff. Two of 107 people on board were killed.[76]
2 June 1983	Flight 797	McDonnell Douglas DC-9, had an electrical fire in the aft lavatory during flight, resulting in an emergency landing at Cincinnati/Northern Kentucky International Airport. During emergency exiting, the sudden influx of oxygen caused a flash fire throughout the cabin, resulting in the deaths of 23 of the 41 passengers, including Canadian folk singer Stan Rogers. All five crew members survived.[77] This is Air Canada's most recent fatal accident.
23 July 1983	Flight 143	Boeing 767, glided to an emergency landing in Gimli, Manitoba after running out of fuel 12,300 metres (40,000 ft) above Red Lake, Ontario. Few people suffered minor injuries during the evacuation due to the steep angle of the escape chute at the rear of the plane; caused by the collapsed nose at the front. This incident was the subject of the TV movie, Falling from the Sky: Flight 174, starring William Devane, and the book, Freefall, by William Hoffer.[78]
2 June 1982		McDonnell Douglas DC-9 exploded during a maintenance period in Montreal, Quebec; no fatalities.[79]
28 March 1989		Air Canada Cargo McDonnell Douglas DC-8 flight from Toronto to Vancouver with stops in Winnipeg and Edmonton slammed down hard onto the runway during landing in Edmonton resulting in the plane leaving the runway for more than 900 feet on the frozen ground and damaging both outboard engines. Icing on the right wing was blamed for the incident. There were no fatalities, but the CASB felt a disaster was averted due to the plane stalling just above the runway, and because the ground hadn't yet thawed. One CASB official was quoted as saying "Ten seconds earlier or three weeks later and we'd be picking up bits and pieces".[80]
16 December 1997		Air Canada CRJ-100, went off the end of the runway upon landing in Fredericton, New Brunswick. There were no fatalities.[81]
10 August 2006	Flights 849, 865	Air Canada flights to Toronto and Montreal were among the seven planes allegedly targeted in a massive bomb plot that was being planned in Britain. Air Canada Flight 849 that leaves Heathrow daily at 15:00 for Toronto and the regular Air Canada Flight 865 that leaves at 15:15 for Montreal. All were to be detonated simultaneously as the planes crossed the Atlantic Ocean carrying between 240 and 285 people each. Both aircraft being Airbus A330-300s.[82]
20 May 2007	Jazz Flight 8911	A Bombardier CRJ-100 flight, which originated in Moncton, had its main landing gear collapse at Toronto-Pearson International Airport while turning from the runway onto the taxiway. There were no injuries.[83] The aircraft C-FRIL was written off and was cancelled from the Canadian Aircraft Register on 18 July 2007[84]
10 January 2008	Air Canada Flight 190	Air Canada flight 190, an Airbus 319, heading from Victoria to Toronto, plunged in the air for thousands of meters for approximately 15 seconds, until the pilots were able to regain the control and fly the plane manually. The plane made an emergency landing in Calgary. Two crew members and eight passengers were admitted to hospital but released the same day. The cause of the incident is unknown but a computer failure was initially suspected. [85]
24 April 2009	Flight 034	Air Canada Flight AC34, a Boeing 777-200LR, (Sydney to Vancouver) encounters severe turbulence related to storm activity 1 hour northeast of Honolulu. The normally direct flight was forced to return back to an unscheduled stop in Honolulu where the injured passengers and crew were treated. While initial reports said that up to 22 people suffered injuries during the turbulence, the official press release from Air Canada[86] reported 9 passengers and 2 crew were injured while an additional 2 crew and 2 passengers remained in hospital in Honolulu. After 2 hours in Honolulu the flight continued on to Vancouver, arriving before 12:00 local time instead of the scheduled 07:30. Unconfirmed reports from passengers on the ground after landing say the turbulence lasted up to 10 minutes with little or no warning before the event.[87]

Executives

CEO and President

• Claude Taylor 1976-1984
• Pierre Jeanniot 1984-1990
• Claude Taylor 1990-1992
• Hollis L. Harris 1992-1996 - former CEO of World Airways (2001-2004), former CEO and President of Continental Airlines (1990-1992) and President of Delta Airlines
• R. Lamar Durrett 1996-1999 - former executive with Delta, Continental and System One
• Robert Milton 1999-2004 - founding partner of Air Eagle Holdings Incorporated
• Montie Brewer 2004-2009
• Calin Rovinescu 2009-present

References

1. ^ Air Canada (30 March 2009). "Air Canada announces appointment of Calin Rovinescu as President & Chief Executive Officer". CNW Telbec. http://micro.newswire.ca/release.cgi?rkey=1703305739&view=13213-0&Start=0. Retrieved 2009-04-04. 
2. ^ "Star Alliance Member Airline - Air Canada". Star Alliance. http://www.staralliance.com/en/meta/airlines/AC.html. Retrieved 2009-04-04. 
3. ^ "General facts on Star Alliance". Star Alliance. http://www.staralliance.com/en/press/facts_figures/index.html. Retrieved 2009-04-04. 
4. ^ "Investors Contacts." Air Canada. Retrieved on 18 May 2009.
5. ^ "About Air Canada - Corporate Profile". Air Canada. http://www.aircanada.com/en/about/acfamily/index.html. Retrieved 2009-05-10. 
6. ^ ^{a b c d e f g} "Indepth: Air Canada Timeline". CBC News. 20 June 2005. http://www.cbc.ca/news/background/aircanada/timeline.html. Retrieved 2009-04-04. 
7. ^ ^{a b c d} "Air Canada History". CBC News. 14 May 2004. http://www.cbc.ca/news/background/aircanada/history.html. Retrieved 2009-04-04. 
8. ^ ^{a b} Mills, Albert J, Mills, Jean Helms. Masculinity and the Making of Trans-Canada Air Lines, 1937-1940: A Feminist Poststructuralist Account. Canadian Journal of Administrative Sciences, March 2006. [1] Date accessed: 18 October 2007
9. ^ World Airline Directory. Flight International. 20 March 1975. p. 465. http://www.flightglobal.com/pdfarchive/view/1975/1975%20-%200529.html. Retrieved 2009-05-24. 
10. ^ Christopher, John; Dion, Joseph P. (14 November 2002). "Issue Definition". The Canadian Airline Industry. Government of Canada / Depository Services Program. http://dsp-psd.pwgsc.gc.ca/Collection-R/LoPBdP/CIR/892-e.htm. Retrieved 2009-04-04. 
11. ^ ^{a b} "Air Canada Innovations". Air Canada. http://www.aircanada.com/en/about/media/facts/innovations.html. Retrieved 2009-05-24. 
12. ^ "Air Canada Sells Credit Card Unit". The New York Times. 27 March 1992. http://query.nytimes.com/gst/fullpage.html?res=9E0CEED8163BF934A15750C0A964958260. Retrieved 2009-05-24. 
13. ^ "Air Canada Strike Settled". Maclean's. 21 September 1998. http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=M1ARTM0011771. Retrieved 2009-05-24. 
14. ^ http://www.cbc.ca/news/background/aircanada/timeline.html
15. ^ Air Canada faces deadline on Deutsche Bank deal - 14 May 2004 - cbc.com Date accessed: 20 October 2008
16. ^ Air Canada The Canadian Encyclopedia. Date accessed: October 20, 2008
17. ^ http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1098216330241_93625530/?hub=TopStories
18. ^ http://www.businessweek.com/innovate/content/may2006/id20060510_847981.htm?chan=innovation_branding_top+stories
19. ^ http://www.aceaviation.com/en/about/index.html
20. ^ Aviation giant retires - onAir, December 2004, aircanada.com Date accessed: 6 November 2008
21. ^ Download SEDAR Filings - 4 November 2005 Date accessed: 20 October 2008
22. ^ Aviation: Air Canada Selects GE Engines for New Boeing Fleet - 9 November 2005 Date accessed: 20 October 2008
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External links

Wikimedia Commons has media related to: Air Canada

• Air Canada official website
• Air Canada Cargo official website
• Air Canada Jazz official website
• Air Canada Vacations official website
• Aeroplan official website
• CBC Digital Archives – Turbulent Skies: The Air Canada Story
• Air Canada Pilots Association
• enRoute inflight magazine

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