Air Canada
IATA AC	ICAO ACA	Callsign AIR CANADA
Founded		11 August 1936 as Trans-Canada Airlines[1]
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 International Airport
Frequent flyer program		Aeroplan
Member lounge		Maple Leaf Lounge
Alliance		Star Alliance
Fleet size		332 including Air Canada Jazz (+40 orders)
Destinations		160
Parent company		ACE Aviation Holdings Inc.
Company slogan		The freedom to fly your own way.
Headquarters		Montreal, Quebec
Key people		* David Richardson (Chairman) * Montie Brewer (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 1937, has had its corporate headquarters in Montreal, Quebec, since it moved from Winnipeg, Manitoba, in 1949. Air Canada provides scheduled and charter air transportation for passengers and cargo to 160 destinations, with its largest hub at Toronto Pearson International Airport; it also provides vacation packages to over 90 destinations via Air Canada Vacations. The company is the world's 7th largest passenger airline by fleet size. The airline's parent company is ACE Aviation Holdings. Air Canada is a founding member of Star Alliance, an alliance of 21 member airlines formed in 1997.^[2][3] In 2006, 34 million people flew with the airline. The following year, Air Canada celebrated its 70th anniversary.

[edit] History

[edit] 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, which linked the Atlantic Ocean to the Pacific Ocean. Using $5 million in government seed money, two Lockheed L-10 Electras and one Boeing Stearman biplane were purchased from Canadian Pacific Airlines.^[4] Experienced airline executives from United Airlines and American Airlines were brought in.^[5]

Passenger operations began on 1 September 1937, with an Electra carrying two passengers and mail from Vancouver to Seattle, a $14.20 round trip.^[5] Transcontinental routes from Montreal to Vancouver began on 1 April 1939, using 12 Lockheed L-14 Super Electras and six Lockheed L-18 Lodestars.^[4]

On 1 July 1938, TCA hired its first flight attendants, and by January, 1940 the airline had grown to about 500 employees.^[6]

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.^[5]

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.^[4] In a late 1970s, with reorganization at CNR, Air Canada became an independent Crown corporation.

[edit] The 1980s and 1990s

An Air Canada Airbus A330-343X, in Star Alliance livery, landing at Vancouver International Airport

1994-2004 livery on a Boeing 767-300ER

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.^[5]

Deregulation of the Canadian airline market, under the new National Transportation Act, 1987 officially opened the airline market in Canada to equal competition.^[7] In 1988 Air Canada was privatized, and 43% of its shares are sold on the public market.^[4]

On 7 December 1987, Air Canada became the first airline in the world to have a fleet-wide non-smoking policy,^[8] and in 1989 became completely privatised.^[4] It sold the enRoute card business to Diners Club in 1992.^[9]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.

On 2 September 1998 pilots for Air Canada launched the company's first pilots' strike.^[10] At the end of 1999 the Canadian government relaxed some of the aviation regulations, aimed at creating a consolidation of the Canadian airline industry.

[edit] 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.^[4]

Current livery on a Boeing 777-300ER landing at Montréal-Pierre Elliott Trudeau International Airport.

[edit] Creditor protection, refinancing, and emergence from protection

On 1 April 2003, Air Canada filed for bankruptcy protection; it emerged from this protection on 30 September 2004, 18 months later. 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. 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 chief Buzz Hargrove got the union concessions needed to let the bid go through.^[11][4][12]

ACE Aviation Holdings is the new parent company under which the reorganised Air Canada is held.

[edit] 747s retired

On October 31, 2004, the last Air Canada Boeing 747 flight landed in Toronto ending 33 years of 747 service with the airline. The Boeing 747-400 fleet was replaced by the Airbus A340 fleet.^[13]

[edit] Modernization

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

On 19 October 2004, 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.^[14] All of the 777s will be powered by the GE90-115B engine, and the 787-8s, by the GEnx engine.^[15] 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 A330-300s.^[16]

Rendering of a Boeing 787 with Air Canada livery

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. The number of 777s on order totals 18 (12 -300ERs, 6 -200LRs) with options for 16 more, totalling 34.^[17] Air Canada has also taken delivery of 15 Embraer 175s and 45 Embraer 190s. It holds options on an additional 60 Embraer 190s^[18] 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.

[edit] Project XM

Embraer 190 landing at Vancouver International Airport

Boeing 777-300 lands at London Heathrow Airport

Started in July 2006, and scheduled to be completed by early 2009, 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.^[19]

New cabin features include:^{[20] [21] [22] [23] [24]}

• In Executive First, new horizontal fully-flat Executive First Suites in a 'herringbone pattern' (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) providing over 200 hours of video and audio entertainment. Larger AVOD (12 in/300 mm touch-screen LCD) equipped with noise-canceling Sennheiser headphones available in Executive First Suites.
• Interactive games at all seats.
• Three-prong 120 V AC plugs for laptops in both classes.
• USB ports to recharge electronic devices.
• USB ports for game controllers.
• XM Radio Canada available at every seat.

[edit] Destinations

Main article: Air Canada destinations

Air Canada operates flights to 98 destinations in Canada, the USA, Latin America, Europe, Australia and Asia. Combined with its Jazz network, the airline serves 160 destinations worldwide.

Further information: Air Canada Jazz destinations

Air Canada Jazz operates feeder and commuter services for Air Canada to 89 destinations in Canada and the USA. 62 of these are served exclusively by Jazz.

[edit] Route changes

[edit] Fleet

The Air Canada fleet consists of 199 aircraft, as of December 2008.^[20] "Project XM Fitted" indicates aircraft with newly renovated aircraft interiors.

• Air Canada has an average fleet age of 8.9 years, as of October 2008.^[32]
• Air Canada has options for 18 more Boeing 777's, 23 Boeing 787 Dreamliners^[17] and 60 Embraer E190's^[18].
• Air Canada was the first North American airline to operate the Airbus A319, A340-300, A340-500, Boeing 777-200LR and Boeing 777-300ER aircraft.
• 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^[33]

[edit] Jazz fleet

Jazz Bombardier CRJ

Air Canada Jazz has a separate fleet consisting of 133 all-Canadian aircraft as of June 2008:^[20]

Main article: Air Canada Jazz

[edit] Historic fleet

Air Canada's Airbus A340-300s were retired from service on November 20 2008 and were replaced by Boeing 777-300ERs. Some were sold to Swiss Internatioal Airlines and some were sold to Lufthansa

Air Canada's Boeing 767-200ER fleet were retired from service by the end of 2008.

Air Canada was the first airline to operate a jet freighter with the introduction of the DC-8 and was the first major airline with an all turbine fleet, which allowed an increase in productivity and reduction in maintenance costs. 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.

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

[edit] 1970

[edit] Onboard

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).

[edit] Executive First / Executive First Suites (International Business Class)

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 B777-300ER and B777-200LR aircraft and all B767-300ER aircraft except fins 631, 687, 689 and 690. Fin 631 is scheduled to be fitted with Executive First Suites (Project XM) by the end of 2008. Fins 687, 689 and 690 will not be fitted with Executive First Suites (Project XM) and will be retired. Executive First Suites are also available on one A330-300, fin 938. The remaining seven A330-300s will be fitted with Executive First Suites (Project XM) by the end of 2009.

Executive First (Original) is available on the remaining three B767-300ERs and seven A330-300s.

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 (0.53 m) seat width and a 6-foot-3-inch (1.90 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 (1.45 m to 1.52 m). Seat configuration is 2–2–2 on Airbus aircraft, with 1–2–2 or 2–2–1 seating on the 767-300ER aircraft, depending on tail fin. Entertainment is personal AVOD (Audio Video On Demand) on Airbus aircraft and B767-300ERs (in the form of DVD players on the B767-300ERs). Music is provided by XM satellite radio.

Airbus A330-300 landing at London Heathrow Airport.

[edit] Executive First Suites/Executive First - Beverage, meal, and other services

• complimentary amenity kit (including dental kit, ear plugs, eye shades, booties)
• complimentary wine/spirits/non alcoholic beverages
• complimentary meal
• selection of newspapers and magazines
• onboard duty free shopping
• access to Maple Leaf lounge^[24]

[edit] Executive Class (North American domestic first class)

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

Seat configuration varies between 1–2, 2–2 depending on the aircraft. Recline is around 120° or 124°, with a width of 20 inches (0.51 m) or 21 inches (0.53 m) and a pitch of 37 inches (0.94 m) to 39 inches (0.99 m).

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

[edit] Executive Class - North America - Beverage, meal, and other services

• Guaranteed window or aisle seat
• Comfy pillow
• Workstation with personal reading light
• Adjustable head and footrests
• XM Satellite Radio showcasing premium music and talk shows
• Free headphones
• Premium wines, spirits and cuisine
• enRoute magazine with Cinema Guide
• Selection of premium newspapers including route-specific titles
• Dedicated washrooms featuring Fruits & Passion "Globe Spa" amenities
• Maple Leaf Lounge access at the airport^[23]

[edit] 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.

[edit] Economy international - Beverage, meal, and other services

• complimentary wines, spirits, and non-alcoholic beverages
• complimentary meal
• free headphones
• onboard duty free shopping^[22]

[edit] Economy North America, Sun Destinations, and the Caribbean - Onboard Café

all flights and all passengers regardless of flight duration:

• alcoholic beverages (beer, wine, liquor and liqueurs) available at a cost of $6 CAD/USD

flights less than 90 minutes duration - all passengers:

• complimentary coffee, tea, juices and soft drinks

flights 1 1/2 hours to 2 hours

Latitude fare:

• complimentary coffee, tea, juices and soft drinks
• 2 complementary snack items

Tango and Tango Plus fare:

• complimentary coffee, tea, juices and soft drinks
• Selection of snacks from $2-$4 CAD

flights 2 hours or longer

Latitude fare:

• complimentary coffee, tea, juices and soft drinks
• complimentary meal item and snack item

Tango and Tango Plus fare:

• complimentary coffee, tea, juices and soft drinks
• selection of hot and cold snacks and meal items from $2-$6 CAD/USD^[21][36]

Air Canada Jazz: note that Café Jazz menu products and services differ from the ones of Air Canada’s Onboard Café. Meal items are not available on Air Canada Jazz flights under 3h15 min in duration and the Café Jazz service is not offered on flights operated on Dash 8 aircraft.^[37]

[edit] 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.^[38]

Air Canada Embraer E175 takes off.

The female cabin crew wear a midnight blue suit jacket with a narrow skirt both lined with blue lining. The jacket sports a red Air Canada maple leaf motif on the left blazer pocket flap. The uniform is composed by a sky blue blouse, sky blue sweater, a frosted leaf graphic design on a red or blue scarf.

The male cabin crew wear a midnight blue suit jacket with suit trousers both lined with blue lining. The jacket sports a red Air Canada maple leaf motif on the left blazer pocket flap. The uniform is composed by a sky blue shirt, midnight blue waistcoat, a frosted leaf graphic design on a red or blue tie.^[39]

[edit] Maple Leaf Lounge

These lounges are open to passengers holding Executive First, or Executive Class tickets. Super Elite, 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.^[40]

Maple Leaf Lounge locations:^[41]

• Calgary International Airport – domestic and international concourse A
• Edmonton International Airport – domestic and international south terminal
• Halifax Stanfield International Airport – domestic and international
• London Heathrow Airport Terminal 3
• Los Angeles International Airport
• Montreal-Pierre Elliott Trudeau International Airport – domestic, transborder and international
• Ottawa Macdonald-Cartier International Airport – domestic and international
• Charles de Gaulle International Airport – International
• Québec/Jean Lesage International Airport – domestic
• Regina International Airport
• St. John's International Airport
• Toronto Pearson International Airport
  • Terminal 1 Domestic – Node E Level 4 , Transborder – Node F level 4, International – HammerHead F Level 3
• Vancouver International Airport – domestic, transborder and international
• Winnipeg James Armstrong Richardson International Airport – domestic and international

[edit] Subsidiaries and partners

[edit] Aeroplan

• In June 2005, Aeroplan was spun off by ACE Aviation Holdings as an Income trust on the Toronto Stock Exchange. ACE Aviation Holdings is no longer a shareholder of Aeroplan.

• In June, 2008, Aeroplan Income Fund converted into a dividend paying public corporation named "Groupe Aeroplan Inc".^[42]

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. They do have a status system, as follows:

Prestige- Star Alliance Silver Status awarded. minimum 25 flights or 25,000 miles. Elite- Star Alliance Gold Status awarded. minimum 50 flights or 35,000 miles. Super Elite- Star Alliance Gold Status awarded. minimum 100 flights or 100,000 miles.^[43]

The number of miles is based on status miles (on ticket) in one calendar year.

[edit] Air Canada Cargo

Air Canada Cargo Limited Partnership offers cargo services on domestic and transborder flights, utilising the cargo capacity on aircraft operated by Air Canada and Jazz on domestic and transborder routes. Air Canada offers cargo services on its international passenger flights and also uses chartered, all-freighter aircraft for Canada – Europe and Canada – Asia services. (Subsidiary of Air Canada)^[44]

In the past, Air Canada Cargo operated its own dedicated fleet of DC-8 freighters and currently operates a World Airways MD-11 freighter from Toronto(YYZ), Canada to Frankfurt(FRA), Germany. Orders for 2 Boeing 777-200F's were in negotiations but that order has since been cancelled.^[17] However, the MD-11 Freighter Service between Toronto (YYZ), Canada and Frankfurt (FRA), Germany has been terminated since July 2008,

[edit] Air Canada Ground Handling Services (ACGHS)

• ACGHS provides ground handling services to Air Canada, Jazz and a number of other carriers at their Canadian and US stations, but with a primary focus on 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.^[45] (Subsidiary of Air Canada)^{[46] [44]}

[edit] Jazz Air LP

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.^[47]

[edit] 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.^[48]

[edit] Aveos (formerly ACTS Aero Technical Support & Services Inc.)

ACTS 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 September 23, 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.^[49]

[edit] 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) ^{[50] [44]}

[edit] Partners

• Air Canada's regional partners include Air Canada Jazz, Exploits Valley Air Services (EVAS),^[51] Air Georgian, and Central Mountain Air.

• Air Canada is one of the founding member of the Star Alliance team.

[edit] Code sharing

Air Canada codeshare agreements with:^[52]

• Air New Zealand *
• Air One
• ANA *
• Asiana Airlines *
• Austrian Airlines *
• Avianca
• BMI *
• Eva Air
• Jet Airways
• LOT Polish Airlines *