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ACN-2004-07 1ST6MTHS STATS
ACN-2005-01 2004 STATS
ACN-2006 WLD TOP RPK
ACN-2009-01 2008 WLD-TOP-RPK
ACN-2011-01-2010 WORLD TOP TRAFFIC
ACN-2013-07 - 1ST ROUGE A319
ACN-2013-10 - 787 DEAL
ACN-2013-12 - 787 C CLASS-A
ACN-2013-12 - 787 C CLASS-B
ACN-2013-12 - 787 PY CLASS
ACN-2013-12 - 787 Y CLASS
ACN-2014-05-1ST 787 DELIVERY
ACN-2014-12 - TORONTO TO RIO
ACN-2015-03 - ACCDT A320-A.jpg
ACN-2015-03 - ACCDT A320-B.jpg
ACN-2015-05 - Toronto.jpg
ACN-2015-07 - Top 10 LCC.jpg
ACN-2017-12 Vancouver to Melbourne.jpg
ACN-2018-04 Premium International Service.jpg
ACN-Flight Crew Cabin Attendants 2018-04.jpg
ACN-MAINTENANCE MRO-TECH SVCS
ACN-View Niagara Falls.jpg
ACN-VISIT MONTREAL BOTANICAL GARDEN
FOUNDED AND STARTED OPERATIONS IN 1937. AIR CANADA (ACN) WAS PRIVATIZED IN 1989. IT IS THE CANADIAN FLAG CARRIER. DOMESTIC AND INTERNATIONAL, PASSENGER & CARGO, SCHEDULED & CHARTER, JET AIRPLANE SERVICES.
AIR CANADA CENTRE 1450
PO BOX 9000, POSTAL STATION AIRPORT
DORVAL, QUEBEC H4Y 1C2, CANADA
PO BOX 14000
MONTREAL, QUEBEC H4Y 1H4, CANADA
CANADA WAS ESTABLISHED IN 1867, IT COVERS AN AREA OF 9,976,139 SQ KM, ITS POPULATION IS 30 MILLION, ITS CAPITAL CITY IS OTTAWA, AND ITS OFFICIAL LANGUAGES ARE ENGLISH & FRENCH.
MARCH 1993: AIR CANADA (ACN) OWNS 10% GUINESS PEAT (GUI).
HAS 28.7% ($235 MILLION) INVESTMENT IN CONTINENTAL AIRLINES (CAL).
1992 = -$363 MILLION (-$171 MILLION) (NET LOSS): +5.4% (RPK) TRAFFIC, 0% PASSENGERS (PAX).
MAY 1993: TO LEASE +5 A320'S AIRPLANES.
JUNE 1993: OFFERS TO TRADE IN 6 OLD 747'S FOR 767'S. 747'S, 442 PASSENGERS (PAX), 2 CLASS, TORONTO - BARBADOS, TO REPLACE 767, 194 PAX.
JUNE 1993: ACCDT: AIR CANADA (ACN) DC-9 CRASHED ON LANDING AFTER IN-FLIGHT LAVATORY FIRE = 28 FATALITIES.
AUGUST 1993: 767-300ER (VN931) DELIVERY. 24 ORDERS CANADAIR RJ'S AIRPLANES.
SEPTEMBER 1993: 1 DC-8-71F (CFM56-2-C1), (GUI) LEASED.
JANUARY 1994: 1993 = -$241.2 MILLION.
11 OF 21 767'S EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) EQUIPPED = 325 FLIGHTS/MONTH OVER NORTH ATLANTIC, 22 OVER CARIBBEAN, 58 OVER PACIFIC (HAWAII). 180 MINUTES (ETOPS) APPROVAL.
FEBRUARY 1994: 6/3 ORDERS A340-300'S (CFM56-5C4) ($729 MILLION) 295 PAX, 1ST NORTH AMERICAN CUSTOMER TO REPLACE 747'S OVER ATLANTIC, & TO DEFER 6 A320 ORDERS. 3 L-1011'S RETURNED TO SERVICE FROM STORAGE FOR USE ON TORONTO (TOR) TO LOS ANGELES (LAX), 238 PAX, 2 CLASS.
MAY 1994: 25/10 ORDERS ($1 BILLION) A319'S.
DECEMBER 1994: 1 CANADAIR RJ (CF34-3A1), 3RD IN 1994. 2 A340-300'S, (ILF) LEASED (NOT HIGH GROSS WEIGHT).
JANUARY 1995: 1994 = +$92.1 MILLION (1ST +VE IN 4 YEARS): +8.9% (RPK) TRAFFIC, +12.2% (ASK) CAPACITY, 63.2% LF LOAD FACTOR (-1.9%).
MARCH 1995: 1 CANADAIR RJ, 6TH DELIVERY.
APRIL 1995: 1 767-200ER (JT9D-7R4D) DELIVERY.
JUNE 1995: ON A340-300 DELIVERY FLIGHT, NUMBER 2 ENGINE SHUTDOWN PRODUCTION FAULT - RETURNED AIRCRAFT TO TOULOUSE. 35 ORDERS A319-100'S (SCRAPPED DC-9X). 2 +6/3 ORDERS A340-300'S, (ILF) LEASED, 284 PAX, 2 CLASS.
AUGUST 1995: 18,811 EMPLOYEES (INCLUDING 1,268 FLIGHT CREW (FC), 3,065 CABIN ATTENDANTS (CA), & 3,287 MAINTENANCE TECHNICIANS (MT).
3RD QUARTER = +C$179 MILLION (+C$130 MILLION): DOMESTIC: +10% (RPK) TRAFFIC, +4% PASSENGERS (PAX), INTERNATIONAL: +15% (RPK), +25% (PAX).
2 ORDERS (1997) A340-8000'S, 232 PAX (NOT ENOUGH TO LAUNCH NEW MODEL).
OCTOBER 1995: NEW ROUTE TORONTO TO PHILADELPHIA.
767-333ER (L/N 596) DELIVERY. ROYAL CANADIAN MOUNTED POLICE INVESTIGATING AIRBUS (EDS) BRIBERY RE-1988 34 ORDERS A320-211'S, VIA SWISS BANK ACCOUNTS.
DECEMBER 1995: CODE SHARE WITH SWISSAIR (SWS), MONTREAL TO ZURICH (747 COMBI, 280 PAX, INSTEAD OF 767 FOR 50% MARKET CAPACITY INCREASE) & USING MD-11'S BY (SWS). TO HONG KONG (KNOWN IN CHINESE AS "MAPLE LEAF AIRLINES"). CALGARY TO FRANKFURT (767-300ER, 203 PAX, 2 CLASS).
$82.5 MILLION UPGRADE ($7 MILLION FROM GOVERNMENT) OF MAINTENANCE BASE. -575 MAINTENANCE TECHNICIAN (MT) EMPLOYEES IN 1996.
1 767-300ER (PW4060) DELIVERY.
JANUARY 1996: CHRIS NASSENSTEIN, NEW VP TECHNICAL OPERATIONS (EX-CANADIAN INTERNATIONAL (CDI), REPLACING JOHN DICKIE.
1995 = +11.4% (RPK) TRAFFIC, +11.1% PASSENGERS (PAX), +8.8% LF.
MARCH 1996: LAMAR DURRETT, PRESIDENT & (CEO).
TO BRUSSELS (767-200ER, 177 PAX).
1995 = +$38 MILLION. 19,500 EMPLOYEES (INCLUDING 4,500 FLIGHT CREW (FC)).
JULY 1996: SOLD 44% CONTINENTAL AIRLINES (CAL) SHARES FOR $129 MILLION GAIN.
AUGUST 1996: CODE SHARE WITH ALL NIPPON AIRWAYS (ANA), OSAKA TO VANCOUVER.
SEPTEMBER 1996: TO KANSAS CITY (32ND ROUTE TO USA, SINCE "OPEN SKIES" AGREEMENT OPENED 18 MONTHS AGO).
NOW PLANS TO OPERATE 747-100'S (20015, 20767, 20881) & 747-200 COMBI'S (20977, 21354, 21627) THROUGH 1998.
OCTOBER 1996: AIR CANADA (ACN) 747'S TO AIR FRANCE (AFA) FOR "C" MAINTENANCE CHECK, (AFA) 767'S TO (ACN) FOR "C" CHECK.
(ACN) DESCRIBED AS "BEST BUSINESS CLASS IN AMERICAS FOR LONG-HAUL" ACCORDING TO BRITISH IN-FLIGHT RESEARCH SERVICES.
NOVEMBER 1996: BACKGROUND ON LAMAR DURRETT, PRESIDENT: BORN 1939 IN ATLANTA, GEORGIA, FROM AUBURN UNIVERSITY, ALABAMA, AT DELTA AIR LINES (DAL) 1967 TO 1990, AT CONTINENTAL AIRLINES (CAL), AS EXECUTIVE VP ADMINISTRATION 1990, SYSTEM ONE PRESIDENT & (CEO) 1990, EXECUTIVE VP AIR CANADA (ACN) 1992. TOOK OVER FROM FELLOW SOUTHENER, HOLLIS HARRIS. HIS FOCUS: REDUCE COSTS IN CUT-THROAT DOMESTIC MARKET, WHERE PRICES WARS WITH CANADIAN INTERNATIONAL (CDI) (& DISCOUNT CHARTERS LIKE GREYHOUND) HAVE LEFT BOTH CARRIERS STRUGGLING. EVEN SO, COSTS ARE DOWN & INTERNATIONAL REVENUES ARE GROWING. STUDIES FRENCH, & ENJOYS MONTREAL'S WINTERS!
TO FRANKFURT (767-300).
DECEMBER 1996: 1ST OF 35 A319'S, 112 PAX, 2 CLASS, 2/MONTH THROUGH 1998 REPLACING DC-9 FLEET (1ST A319 IN NORTH AMERICA).
JANUARY 1997: TORONTO TO OSAKA (A340). CODE SHARE WITH BRITISH MIDLAND (BMA), LONDON HEATHROW (LHR) TO BRUSSELS. RECEIVES CANADIAN RIGHTS TO FLY TO DENMARK, NORWAY, SWEDEN, AND UKRAINE.
1996 = +$110 MILLION: +14.6% (RPK) TRAFFIC, +10% (ASK) CAPACITY, 65.2% LF LOAD FACTOR (+2.2), INTERNATIONAL: +20% (RPK), +16.6% (ASK), DOMESTIC: +5.6% (RPK), +1.3% (ASK).
1996 = 19.890 BILLION (RPM) TRAFFIC (#20 HIGHEST IN THE WORLD). 19,000 EMPLOYEES.
1 A319 (CFM56-5A5) DELIVERY.
FEBRUARY 1997: +1,100 EMPLOYEES IN 1997.
SOME DOMESTIC 767'S SWITCHED TO INTERNATIONAL.
MARCH 1997: STRIKE BY 900 REGIONAL PILOTS = -$8 MILLION/MONTH OF 4 REGIONAL AIRLINES, NOW INTO 7TH WEEK.
TO RETURN 2 767'S (VB001; VB002) TO LESSOR IN 6/97.
5 YEAR MAINTENANCE CONTRACT FOR 26 AMERICA WEST AIRLINES (AMW) A320'S AT WINNIPEG MAINTENANCE BASE.
1 A319 (CFM56-5A5) & 1 A340-300X (CFM56-5C4) DELIVERIES.
APRIL 1997: 60TH ANNIVERSARY!
MAY 1997: NONSTOP TORONTO TO PHOENIX (A319, 112 PAX). NONSTOP TORONTO TO SEATTLE. NONSTOP TORONTO TO SAN FRANCISCO (SFO) (A319).
INTERNATIONAL FLIGHTS TO LEAVE FROM DORVAL AIRPORT FROM 1997-07, WITH MIRABEL ONLY USED FOR CHARTER AND CARGO FLIGHTS. CANADA TO USA +38% CAPACITY, INCLUDING DALLAS/FORT WORTH (DFW), RALEIGH/DURHAM, CHARLOTTE & PHOENIX.
2 A319'S (CFM56-5A5) DELIVERIES.
JUNE 1997: 1ST TRANSPACIFIC NONSTOP (5,800 NM) TORONTO TO OSAKA (A340 HGW). MONTREAL TO SAN FRANCISCO (SFO) (A319).
NEW "STRATEGIC PARTNERSHIP" WITH AIR NEW ZEALAND (ANZ).
JULY 1997: $1.4 BILLION, 8/20 ORDERS A330/A340'S.
AUGUST 1997: CODE SHARE WITH LUFTHANSA (DLH) TO UKRAINE, KIEV, AND ODESSA.
WET-LEASED 767-300 TO AIR NEW ZEALAND (ANZ) FOR HONOLULU TO VANCOUVER.
A319-114 DELIVERY IN LIVERY OF ORIGINAL TRANS-CANADA AIR LINES. SOLD DC-9-32 (47069) TO CEBU PACIFIC AIR. 3 A319-114'S (572; 693; 695) DELIVERIES. +1 ORDER (1998-05) A340-300ER, (ILF) LEASED.
SEPTEMBER 1997: 60TH ANNIVERSARY!
TORONTO TO MILWAUKEE & RESUMED TORONTO TO CLEVELAND. CODE SHARE WITH SCANDINAVIAN AIRLINES (SAS) ADDS 6 SCANDINAVIAN CITIES TO NETWORK: STOCKHOLM & GOTHENBURG, SWEDEN, COPENHAGEN & BILLUND, DENMARK, OSLO & STAVANGER, NORWAY VIA LONDON, FRANKFURT, AND NEWARK. THIS SUMMER, HAD EXTENSIVE 767-300ER CHARTER SERVICES TO JAPAN, INCLUDING SAPPORO, (CHITOSE), FUKUOKA, HIROSHIMA, KOMATSU, NAGOYA, SENDAI, AND TAKAMATSU. NEW ROUTE TORONTO TO CINCINNATI/NORTH KENTUCKY INTERNATIONAL.
LETTER OF INTENT (LOI) 5 A330-300'S & +3 A340-300'S +/20 OPTIONS (1999-10). TO REPLACE 6 747-100/-200'S & 2 LEASED A340-313'S. IN 1998-03, TO DECIDE ON 2 A340-500'S & 3 A340-600'S WITH /10 OPTIONS (2002). A340-500 FOR TORONTO TO HONG KONG NONSTOP. IN 1999, PLANS FOR +8 A330-300'S OR A340-300'S (2000). 3 OF THESE WOULD REPLACE 3 747-400'S. 2 A319-114'S (719; 721) DELIVERIES.
OCTOBER 1997: 19,868 EMPLOYEES.
TORONTO TO KINGSTON, JAMAICA (747).
2 A319-114'S DELIVERIES. +1 ORDER (1998-05) A340-300, (ILF) 5 YEAR LEASED. EXTENDED LEASES ON 2 A340-300'S TO 2000-06. SOLD 3 DC-9-32'S (47340; 47341; 47342) TO MEMPHIS GROUP FOR PART OUT.
NOVEMBER 1997: 5 ORDERS A330-300'S (1ST FOR SCHEDULED OPERATOR IN NORTH AMERICA) & 3 ORDERS A340-300'S.
DECEMBER 1997: AIR CANADA (ACN) IS PART OF STAR ALLIANCE (SAL) WITH LUFTHANSA (DLH), SCANDINAVIAN AIRLINES (SAS), UNITED AIRLINES (UAL), VARIG (VAR), & THAI AIRWAYS (TII). AGREES TO A GLOBAL AIR CARGO SYSTEM, SHARING INFORMATION TECHNOLOGY (IT) HANDLING FACILITIES, & A DEVELOPMENT OF JOINT PRODUCTS.
DC-9-32 (47266), SOLD TO CEBU AIR (CEB).
JANUARY 1998: EXPANDS E-TICKETING TO 14 US GATEWAYS. NOW HAS 1,300 NON-STOPS/WEEK CANADA/USA. SINCE TRANS-BORDER SIGNING, 33 NEW ROUTES (42 INCLUDING SUBSIDIARIES).
"BEST TRAVELER INTERNATIONAL" MAGAZINE VOTES AIR CANADA (ACN) "BEST AIRLINE FOR TRAVEL TO CANADA," FOR 6TH CONSECUTIVE YEAR.
1997 = +$299 MILLION (+$104 MILLION): +9% (RPK) TRAFFIC, +7% (ASK) CAPACITY, 70% LF LOAD FACTOR (+1.6).
2 A319-114'S (769; 773) DELIVERIES. PURCHASED 15 HUSH-KITS & POSSIBLE +10 TO RETROFIT SOME OF REMAINING DC-9-32'S.
FEBRUARY 1998: 2 A319'S (CFM56-5A5) DELIVERIES.
MARCH 1998: JOINT VENTURE PURCHASING COMPANY WITH LUFTHANSA (DLH) & UNITED AIRLINES (UAL), AS GIANT COMPANY WITH 1,124 AIRPLANES & 168,000 STAFF - AIR CANADA (ACN) HAS 24,000.
ALL 25 DC-9-32'S TO BE HUSH-KITTED TO STAGE 3 TO SUPPORT USA TO CANADA TRAFFIC.
APRIL 1998: AIR CANADA (ACN) IS 1 OF LAUNCH OPERATORS WITH 2 ORDERS A340-500'S, 3 ORDERS A340-600'S, /10 OPTIONS (2002). A340-500, 308 PAX, FOR NONSTOP TORONTO TO HONG KONG, -600, 360 PAX, MONTREAL TO LONDON.
E-TICKETING, NOW 8% SALES.
FISCAL YEAR (FY) 1997 = +$286 MILLION (+$149 MILLION) RECORD!
TO HIRE +1,500 EMPLOYEES. CURRENTLY 21,500 EMPLOYEES (INCLUDING 4,500 FLIGHT CREW (FC)).
3 A319-114'S (546; 813; 817), DELIVERIES.
MAY 1998: MONTREAL TO TEL AVIV (767). IN 1998-07, TORONTO TO SAN JOSE (A319, 112 PAX).
2 A319'S (CFM56-5A5) & 1 A340-300X (CFM56-5C4) DELIVERIES.
JUNE 1998: 1 ORDER (1999-02) A340-300, (ILF) LEASED. 2 A319'S DELIVERIES.
$18 MILLION FOR ENHANCED GROUND PROXIMITY WARNING SYSTEMS (EGPWS) INSTALLATION ON FLEET.
CODE SHARE WITH ROYAL JORDANIAN (RJA) TO AMMAN, JORDAN VIA LONDON HEATHROW (LHR) FROM TORONTO/MONTREAL.
JULY 1998: L-1011-385-1 (1025) SOLD TO AIR TRANSAT (AIJ).
SOLD GALILEO, CANADA. STARTING TO SHOW BENEFITS FROM THE STAR (SAL) ALLIANCE.
PLANS TO SELL 3 OLDER 747-100'S BY END OF 1998, & REPLACE WITH A340'S AND WILL REDUCE DC-9 FLEET FROM 25 TO 20.
1997 TOP WORLD AIRLINES COMPARISON:
EMPLOYEES (1,000): 15 TWA 25; 16 SVA 25; 17 IND20 23; 18 IBE 22; 19 SAS 22; 20 ACN 22; 21 TII 22; 22 PIA 19.
NET ($ MILLION): 10 CAL 385 (319); 11 SWA 318 (207); 12 AFA 314 (-28); 13 KLM 303 (-33); 14 ACN 286 (149); 15 283 (265).
(RPK) TRAFFIC (BILLION): 15 SWA 46; 16 TWA 41; 17 KAL 40; 18 CAT 39; 19 ACN 37; 20 ALI 36; 21 TII 31; 22 MAS 29; 23 IBE 28; 24 SWS 28.
PASSENGERS (PAX) (MILLION): 15 SAS 21; 16 QAN 19; 17 AMW 18; 18 JAS 17; 19 IBE 15; 20 GUN 15; 21 TII 15; 22 KLM 14.5; 23 ACN 14.0; 24 ANS
13; 25 ASA 12.
AUGUST 1998: TORONTO TO NEW ORLEANS (DC-9). CODE SHARE WITH AIR NEW ZEALAND (ANZ), LINKING VANCOUVER TO HONOLULU & TORONTO TO LOS ANGELES (LAX) TO NEW ZEALAND. IN 1997, 47,000 KIWIS TRAVELED TO CANADA (+21%).
SEPTEMBER 1998: FOLLOWING NORTHWEST AIRLINES (NWA) ACTION, PILOT'S (FC) GO ON STRIKE. ALL 161 AIRPLANES GROUNDED.
3 DC-9-32'S (47348; 47349; 47350) PARTED OUT. 3 747-100'S (JT9D-7A) (20015; 20767; 20881) RETIRED.
(IATA) REPORTED FISCAL YEAR (FY) 1997 = +$308.44 MILLION. 13-DAY PILOT STRIKE COST -$218.3 MILLION REVENUE, OFF SET BY -$26.4 MILLION EXPENSES = TOTAL -$191.8 MILLION. EXPECTS NET LOSS FOR 3RD & 4TH QUARTER 1998.
OCTOBER 1998: TO WASHINGTON DULLES FROM DORVAL INTERNATIONAL (RJ). RECEIVES APPROVAL FOR SERVICE TO LEBANON. OTTAWA TO NEW YORK LA GUARDIA (RJ, 50 PAX, NONSTOP). TORONTO TO NEW ORLEANS (DC-9, 16F, 75Y).
NOW 1,300 NON-STOPS/WEEK CANADA/USA ON 72 ROUTES TO 42 USA CITIES.
SOLD 3 747-133'S (JT9D-7A) (20015, 767, 881) TO (P&W), CANADA (PWC) FOR PART OUT. DC-9-32 (47353) TO CEBU PACIFIC (ZZX).
19 767'S, 180 MINUTES EXTENDED TWIN ENGINE OPERATIONS (ETOPS) FLIGHTS/MONTH (TOTAL FLIGHTS) = NORTH ATLANTIC 757 (43,640); PACIFIC 34 (3,196).
NOVEMBER 1998: OTTAWA TO NEW YORK LAGUARDIA, TORONTO TO NEW ORLEANS.
SELLS ITS 10.2% OF (GPA) GROUP (GUI) FOR +$11.6 MILLION AFTER TAXES.
DECEMBER 1998: 3 747-133'S (20015; 20767; 20881), SOLD TO EVERGREEN INTERNATIONAL (EVR) & (P&W) FOR PART OUT AT MARANA, ARIZONA. 2 DC-9-32'S (47354 & 47422), WITHDRAWN FROM USE (WFU).
JANUARY 1999: GOVERNMENT OK'S CANADA TO TAIPEI. IN 1999-05 CALGARY TO OTTAWA (2X-DAILY A319) & CALGARY TO CHICAGO (ORD).
1998 = 23.2 BILLION (RPM) TRAFFIC; (+2.0%); +2.1% (ASM) CAPACITY; 70.9% LF LOAD FACTOR(-.2); INTERNATIONAL: -1% (RPM); +.5% (ASM); -1% LF; DOMESTIC: +7.4% (RPM); +5.2% (ASM); +1.5% LF; 18.8 MILLION PAX.
FEBRUARY 1999: AFTER-EFFECTS OF LAST YEAR'S PILOT (FC) STRIKE RESULTS IN 1,275 STAFF LAYOFFS & -450 BY END OF 1999.
1998 = -$11 MILLION (13-DAY PILOTS' STRIKE -$103 MILLION). 4TH QUARTER = -$20 MILLION: +8% (RPM) TRAFFIC, +3% LF LOAD FACTOR.
IN 1999, TO RETIRE 6 747'S & REDUCE DC-9 FLEET TO 16 AIRPLANES, CANCELING REFURBISHMENT PROGRAM. WILL DEFER DELIVERIES OF 2 OF 4 A330'S FROM 2000 & 2001 & FINAL PHASE OF AIRBUS WIDE BODY RENEWAL PROGRAM.
"AIR TRANSPORT WORLD" MAGAZINE VOTES AIR CANADA (ACN) "1998 PASSENGER SERVICE AIRLINE OF THE YEAR." "OFFICIAL AIRLINE GUIDE (OAG) WORLDWIDE" NAMES (ACN) "1998 BEST NORTH AMERICAN DOMESTIC (SHORT HAUL AIRLINE," AND 3RD PLACE AFTER EMIRATES (EAD) AND SINGAPORE AIRLINES (SIA) AS OVERALL "1998 AIRLINE OF THE YEAR."
SELLS 35% STAKE FOR $28.1 MILLION IN INTERNATIONAL DATA NETWORK PROVIDER, EQUANT NV (PREVIOUSLY KNOWN AS SITA TELECOMMUNICATIONS HOLDINGS NV, THE NETHERLANDS). (ACN) STILL HAS $53 MILLION WORTH OF SHARES LEFT.
CODE SHARE WITH MEXICANA (CMA) VIA CHICAGO TO MEXICO.
A340-313X (257, C-GDVV) DELIVERY.
MARCH 1999: NOW HAS 22,520 EMPLOYEES WITH -450 BY END OF 1999, PRIMARILY THROUGH ATTRITION.
CODE SHARE WITH ROYAL JORDAN (RJA) FROM MONTREAL/TORONTO TO AMMAN, VIA LONDON HEATHROW. IN 1999-05, CALGARY TO CHICAGO (ORD) & IN 1999-06 TORONTO TO SAN DIEGO (A319).
RETIRED DC-9-32 (47292, C-FTMD), TO MARANA.
APRIL 1999: CHANGES MIND AND DEFERS 2 A330-300'S DELIVERIES TO 2001, WITH OPTIONS NOT TAKEN-UP. TO RETURN 3 A340-300'S TO TO (ILF) IN NEXT 2 YEARS. CANCELS HUSHKITS FOR 25 DC-9-30'S.
1998 = 3.16 BILLION (FTM) FREIGHT (+.1%). SOLD ITS 35% SHARE IN EQUANT (+$28.1 MILLION).
CODE SHARE WITH MEXICANA (CMA), WINNIPEG, QUEBEC CITY, VANCOUVER, CALGARY, TORONTO, AND MONTREAL TO MEXICO CITY, GUADALAJARA, CANCUN, ACAPULCO, AND PUERTO VALLARTA.
MAY 1999: STAR ALLIANCE (SAS), NONSTOP TORONTO TO COPENHAGEN. IN 1999-07, VANCOUVER TO TAIPEI. CODE SHARE WITH BRITISH MIDLAND (BMA), LONDON TO AMSTERDAM.
LAMAR DURRETT VICE CHAIRMAN & (CEO). ROBERT MILTON PRESIDENT & (COO).
JUNE 1999: IN 1999-08, NONSTOP OTTAWA TO WASHINGTON REAGAN AIRPORT (CANADAIR RJ).
1998 TOP WORLD AIRLINES - TRAFFIC (RPM) (BILLION):
13 QAN 35.22; 14 ANA 33.38; 15 SWA 31.43; 16 CAT 25.26; 17 TWA 24.42; 18 ACN 23.21; 19 ALI 22.10; 20 TII 21.34; 21 IBE 20.19; 22 KAL 19.95; 23 MAS 18.25.
2 A340-300'S DELIVERIES.
AUGUST 1999: LAMAR DURRETT PRESIDENT & (CEO) RETIRES, REPLACED BY ROBERT MILTON.
CODE SHARE WITH LUFTHANSA (DLH), FRANKFURT TO ABU DHABI/DUBAI.
SEPTEMBER 1999: NEXT MONTH, NONSTOP HALIFAX TO WASHINGTON DULLES.
EXPANDED ROUTES TO MEXICO BY CODE SHARE WITH MEXICANA (CMN), LOS ANGELES (LAX) TO MEXICO CITY AND GUADALAJARA, CANCUN, IXTAPA & PUERTO VALLARTA.
AIR CANADA (ACN) OPPOSES RECENT BID BY ONEX CORPORATION TO MERGE (ACN) WITH CANADIAN AIRLINES (CDI). SAYS IT WILL RESULT IN LOSS OF -10,000 JOBS FROM COMBINED AIRLINE.
DC-9-32 (47485) SOLD TO CEBU PACIFIC (CEB).
OCTOBER 1999: 1ST A330-343 DELIVERY.
UNITED AIRLINES (UAL) & LUFTHANSA (DLH) OFFER C$730 MILLION SUPPORT PACKAGE TO REPEL ONEX TAKEOVER, INCLUDING BUYING C$230 MILLION STOCK, EXTENDING CODE SHARE THROUGH 2009, AND CREATING C$310 MILLION GUARANTEED CREDIT FACILITY + PURCHASE AND LEASE BACK OF 3 A330-300'S.
NOVEMBER 1999: ONEX CORPORATION COUNTERS BY +C$300 OFFER FOR AIR CANADA (ACN)/CANADIAN (CDI) MERGED AIRLINE, WITH NO -5,000 STAFF CUTS, AND WILL BUY OUT (AMR) SHARES IN (CDI). LATER, (ONEX) WITHDREW BID. (ACN) TO CONTINUE TO TRY AND ACQUIRE CANADIAN (CDI).
IN 2000-01, TO REACTIVATE 2 DC-9-32'S (47022, C-FTLM; & 47198, C-FTLW). A330-343X (284, C-GFAJ) DELIVERY.
DECEMBER 1999: $10 MILLION, 14 MONTH CONTRACT FOR HEAVY MAINTENANCE ON SCANDINAVIAN AIRLINES (SAS) 767 FLEET WILL CREATE +180 NEW JOBS AT (ACN)'S DORVAL MAINTENANCE BASE.
GOVERNMENT OK'S (ACN) ACQUISITION OF CANADIAN (CDI) FOR C$92 MILLION.
JANUARY 2000: PURCHASED 82% OF CANADIAN AIRLINES (CDI). ALSO, IS CLOSING ACQUISITION OF (AMR) SHARES FOR C$59 MILLION.
1999 = 24.24 BILLION (RPM) TRAFFIC (+4.4%), +3.8% (ASM) CAPACITY, 71.4% LF LOAD FACTOR (+.5).
INVESTS C$23 MILLION IN ITS MONTREAL DORVAL MAINTENANCE FACILITY, & IS PROMOTING ITS 3RD -PARTY MAINTENANCE CONTRACTS. HAS SCANDINAVIAN AIRLINES (SAS) 767-300 FOR AIRFRAME & CABIN RECONFIGURATION MODIFICATIONS. TO CATER FOR 767'S, A330'S, & A340'S (+30,000 SQ FT).
FEBRUARY 2000: 5 YEAR COMPONENT PART MAINTENANCE CONTRACT FOR AIR JAMAICA (JAM) A320 & A321'S.
IN 2000-04, TORONTO TO TOKYO. IN 2000-06, DAILY NONSTOP AUSTIN TO BERGSTROM INTERNATIONAL AIRPORT TO TORONTO (A319), AND DAILY NONSTOP VANCOUVER TO WASHINGTON DULLES (A319). ALSO, VANCOUVER TO MEXICO CITY, BOSTON, AND LOS ANGELES (LAX), PLUS TORONTO TO KELOWNA. CODE SHARE WITH LUFTHANSA (DLH), TORONTO TO MUNICH (767-300ER).
1999 = +C$213 MILLION.
23,100 EMPLOYEES, (INCLUDING +200 MAINTENANCE TECHNICIANS (MT) EMPLOYEES AT MONTREAL MAINTENANCE).
2 DC-9-32'S (45845; 47019), RETIRED.
MARCH 2000: CLAUDE MORIN, VP CARGO, & ALICE KEUNG, VP INFORMATION TECHNOLOGY & CHIEF INFORMATION OFFICER.
1999 = 39.01 BILLION (RPK) TRAFFIC (+4.4%).
IN 2000-04, CODE SHARE WITH ALL NIPPON (ANA), TORONTO TO TOKYO (A340), VIA LOS ANGELES (LAX).
APRIL 2000: TORONTO TO MEXICO CITY. IN 2000-07, TORONTO TO AMSTERDAM (767-200, DAILY).
JUNE 2000: A330-343X (344, C-GFUR) DELIVERY.
JULY 2000: CANADIAN (CDI) IS NOW A WHOLLY OWNED SUBSIDIARY OF ALBERTACO, WHICH IS OWNED BY AIR CANADA (ACN).
VANCOUVER TO CHICAGO (ORD). TORONTO TO KELOWNA (A319, NONSTOP, DAILY).
1999 TOP WORLD AIRLINES COMPARISONS:
TRAFFIC (RPK) (BILLION): 13 SWA 58.7; 14 QAN 58.1; 15 ANA 56.7; 16 TWA 41.9; 17 CAT 41.5; 18 ACN 39; 19 TII 38.5; 20 ALI 36.7; 21 KAL 36.7; 22 IBE 35.4.
NET PROFIT ($ MILLION): 16 SAS 217; 17 AMW 201; 18 ASA 196; 19 JAL 187; 20 SWS 171; 21 IBE 154; 22 ACN 147; 23 TII 140; 24 ANZ 114.
EMPLOYEES (1,000): 17 SAS 25.8; 18 TII 24.1; 19 QAN 23.4; 20 ACN 23; 21 MAS 22.8; 22 IND 22; 23 TWA 21; 24 EGP 20.1; 25 JAL 19.
1999 = +$146.61 MILLION (-$11.01 MILLION): 39.01 BILLION (RPK) (+4.4%); 71.4% LF; 1.26 BILLION (FTK) (+3.6%); 15.2 MILLION PASSENGERS (PAX) (+2.7%); 22,991 EMPLOYEES.
JOINS E-COMMERCE VENTURE CALLED "aeroexchange" FOR AIRPLANE PARTS, MAINTENANCE SERVICES; & GENERAL SUPPLIES WITH 12 AIRLINES: (CAT); (DLH); (SIA); (FED); (NWA); (ANA); (AMW); (SAS); (KLM); (AUL); & (ANZ). AWARDED "BEST MANAGED MAJOR AIRLINE IN NORTH AMERICA" BY "AVIATION WEEK" MAGAZINE.
IN 2000-10, VANCOUVER TO NEW YORK (JFK).
AUGUST 2000: +652 EMPLOYEES.
SEPTEMBER 2000: IN 2000-11, VANCOUVER TO SHANGHAI (767-300, DAILY NONSTOP).
FLIGHTSAFE CONSULTANTS, UK, AWARDS AIR CANADA (ACN) "WORLD'S SAFEST AIRLINE" FROM ANALYSIS OF >500 AIRLINES.
OCTOBER 2000: MONTREAL TO MIAMI, TORONTO TO RALEIGH AND ST JOHNS. VANCOUVER TO TOKYO. VANCOUVER TO LONDON. EDMONTON TO OTTAWA. MONTREAL TO ST JOHN'S. CODE SHARE WITH SINGAPORE AIRLINES (SIA), TORONTO TO LONDON, COPENHAGEN, SINGAPORE.
CONSIDERING FORMING SEPARATE, INTERNATIONAL CARGO CARRIER USING 747F'S.
+2 ORDERS A319'S & 12 ORDERS A321'S, 160 PAX (1ST CANADIAN ORDER) (2001-10). 6 ORDERS (2001-08) A319'S & 3 ORDERS (2001-08) A320'S, BOTH (ILF) 10 YEAR LEASED. 5 ORDERS A319, (GEH) 13 YEAR LEASED, AND 4 ORDERS 767-300'S, (GEH) 13 YEAR LEASED.
NOVEMBER 2000: BY 2001-03, AIR CANADA (ACN)/CANADEIAN (CDI) WILL FLY UNDER A SINGLE AIR OPERATIONS CERTIFICATE (AOC).
FORMS AIR CANADA TECHNICAL SERVICES TO OFFER 3RD PARTY MAINTENANCE, REPAIR & OVERHAUL (MRO). ROBIN WOHNSIGL PRESIDENT (ACN) TECHNICAL SERVICES.
1 767-35HER (26388), EX-AIR EUROPE ITALY (EIY), LEASED TO CANADIAN (CDI).
DECEMBER 2000: IN 2001-03, OTTAWA TO SAN JOSE.
1 767-3YO (24948, /91 C-GHML) (PW4000), EX-TRANSBRASIL (TBL), (GECAS) (GUI) LEASED.
BUYS 82% OF CANADIAN (CDI).
JANUARY 2001: TO REDUCE ITS WORK FORCE BY -3,500 THROUGH ATTRITION, A VOLUNTARY SEPARATION PROGRAM AND "OTHER MEASURES." SINCE MERGER WITH CANADIAN (CDI), HAS GROWN TO 46,000 EMPLOYEES. LAST MONTH, 1,400 AGREED TO TAKE VOLUNTARY SEPARATION. PLANS TO HIRE +300 PILOTS (FC).
NEW AIRPLANES HEAVY MAINTENANCE CONTRACT FOR JETBLUE (JBL) A320'S.
CODE SHARE WITH LUFTHANSA (DLH), FRANKFURT TO MOSCOW/ST PETERSBURG.
3 737-275'S (20958, C-GBPW; 20959, C-GCPW; 21115, C-GEPW), EX-(PWA)/(GUI).
TOP WORLD AIRLINES 2000 - TRAFFIC (RPM) (BILLION):
7 DLH 58.52; 8 AFA 57.04; 9 JAL 55.30; 10 USA 46.83; 11 SIA 43.99; 12 ACN 42.38; 13 SWA 42.23; 14 QAN 39.46; 15 KLM 37.5
FEBRUARY 2001: PAUL BROTTO VP PLANNING & COST MANAGEMENT, EX-(CEO) CANADIAN (CDI).
IN 2001-06, CALGARY TO SAN JOSE.
AIR CANADA (ACN) TECHNICAL SERVICES PLANS TO EXPAND ITS REGIONAL AIRPLANE MAINTENANCE BUSINESS AT CALGARY (275,000 SQ FT) THROUGH 3RD PARTY WORK.
(ACN) USES MXI MAINTENANCE EXPEDITOR, OTTAWA, WHICH TAKES FAULT MESSAGES TRANSMITTED FROM IN-SERVICE AIRPLANES & DISPLAYS THEM VIA A WINDOWS-BASED PERSONAL COMPUTER TO LINE MECHANICS TO DEAL WITH INBOUND PROBLEMS. "EXPEDITOR" GIVES MECHANICS ONE-CLICK ACCESS TO 6 OTHER GREEN SCREEN SYSTEMS: (ACARS), FLIGHT SCHEDULING, DISPATCH, AIRPLANE MAINTENANCE HISTORY, TROUBLE-SHOOTING MANUAL (TSM), AND THE MINIMUM EQUIPMENT LIST (MEL).
4 767-300ER'S TO BE LEASED TO ANSETT (ANS) IN 2001-06.
MARCH 2001: 20OO = 68.65 BILLION (RPK) TRAFFIC (+4.2%).
VANCOUVER TO TAIPEI. IN 2001-04, CODE SHARE WITH AUSTRIAN (AUL), TORONTO TO VIENNA. CODE SHARE WITH ALL NIPPON (ANA), VANCOUVER TO NAGOYA, (767-300ER, 4X-WEEKLY). IN 2001-10, POLAR ROUTE, VANCOUVER TO NEW DELHI (A340) TO SAVE 4 HOURS.
APRIL 2001: IN 2001-05, TORONTO & MONTREAL TO VARADERO. TORONTO TO CIEGO DE AVILLA.
767-275 (22683), WITHDRAWN FROM USE (WFU).
MAY 2001: LETTER OF INTENT (LOI) FOR ACQUIRING 30% OF SKYSERVICE AVIATION AND 50% VOTING/35% NON-VOTING INTEREST IN SKYSERVICE AIRLINES (SKB) FOR $9.8 MILLION.
PLANS TO CUT AIR CANADA (ACN) STAFF BY -3,500.
CODE SHARE WITH FIRST AIR (BRS), EDMONTON TO YELLOWKNIFE. IN 2001-06, TORONTO TO CHARLESTON/GREENVILLE/NORFOLK. EDMONTON TO SAN FRANCISCO (SFO). IN 2001-07, VANCOUVER TO MIAMI. IN 2001-10, TO LAS VEGAS. PLANS TO TAKE ADVANTAGE OF CURRENT COMAIR (COI) STRIKE, BY IN 2001-06, ADDING TORONTO TO CINCINNATI (F28, 2X-DAILY, 6 DAYS/WEEK).
1 A330-343X (400, C-GHKR) DELIVERY.
JUNE 2001: 767 (C-GBZR) HAS COLOR SCHEME CALLED "FREE SPIRIT" DESIGNED TO INCREASE AWARENESS OF ABORIGINAL TOURISM. THE DEPICTION OF THE 120-FOOT LONG EAGLE WAS CREATED BY IROQUOIS ARTIST, ARNOLD ARON JACOBS.
GARRY FAILLER, VP ENGINE MAINTENANCE CENTER. WILLIAM ZOELLER VP HEAVY MAINTENANCE. DAVE DIGGLE VP COMPONENT MAINTENANCE. RON ELVIDGE VP SUPPORT SERVICES AND AIRWORTHINESS.
LAUNCHES NEW MOBILE COMMUNICATION SERVICE, DEVELOPED IN COOPERATION WITH SYMPATICO-LYCOS, THAT ALLOWS CUSTOMERS TO ACCESS A VARIETY OF TRAVEL INFORMATION AT ANY TIME, FROM THEIR WEB-ENABLED WIRELESS PHONE, OR COMMUNICATION DEVICE.
TORONTO TO CINCINNATI. IN 2001-12, TORONTO TO HOLGUIN, CUBA (A320, 4/WEEK).
AFTER IN-FLIGHT EVALUATION ON 5 767'S ON NORTH AMERICAN ROUTES, AIR CANADA (ACN) COMMITS WITH TENZING COMMUNICATIONS TO DEPLOY IN-FLIGHT, E-MAIL & INTERNET SERVICES, ACROSS ENTIRE FLEET, STARTING 2001-10 & COMPLETE BY THE END OF 2003.
767-35HER (26387) LEASED TO ANSETT (ANS). 3 767-333ER'S (30846, C-GHLQ; 30850, C-GHLT; 30851, C-GHLU) & 2 A330-343X'S (408, C-GHKW; 412, C-GHKX) DELIVERIES.
JULY 2001: $907.2 MILLION DEAL WITH (IBM) CANADA, TO DEVELOP NEW TECHNOLOGIES FOR AIR CANADA (ACN) AND THE AIRLINE INDUSTRY. PROJECTED TO SAVE (ACN) $129.6 MILLION >7 YEAR TERM, WITH TRAVEL INDUSTRY SOLUTIONS. WILL BE AVAILABLE TO OTHER COMPANIES THROUGH THIS MARKETING ALLIANCE. IBM WILL MANAGE ALL (ACN)'S COMPUTER & INFORMATION TECHNOLOGY (IT) OPERATIONS, AND WILL MANAGE ITS GLOBAL (IT) INFRASTRUCTURE, INCLUDING ANY APPLICATION DEVELOPMENT AND MAINTENANCE, 20,000 WORKSTATIONS, EMPLOYEE HELP DESK SERVICES, AS WELL AS NETWORK & COMPUTER SERVER OPERATIONS.
AGREEMENT WITH ITS PILOTS (FC) TO LAUNCH A LOW FARE CARRIER BY END OF 2001, WITH UP TO 20 AIRPLANES. (ACN) THEN TERMINATED AGREEMENT TO FORM A STRATEGIC PARTNERSHIP (INCLUDING 30% STAKE) WITH SKYSERVICE (SKB).
AUGUST 2001: PLANS TO CUT -4,000 JOBS TO TRY TO RETURN TO PROFITABILITY. BY END OF 2001, TO REDUCE BY -7,500. IN 2002, WILL ELIMINATE 1 747-400 AND 2 A340'S FROM (ACN) FLEET.
IN 2001-02, TORONTO TO HONOLULU TO MELBOURNE (767-300ER).
DC-9-32 (47292, 47270) WFU. 1 A319-112 (1562, C-GITP) DELIVERY. HEAVY MAINTENANCE CONTRACT FOR ANSETT (ANS) 4 A320'S, 1ST ALREADY AT WINNIPEG.
CODE SHARE WITH ALL NIPPON (ANA) TOKYO, OSAKA, NAGOYA TO FUKUOKA, SAPPORO, OKINAWA, & KAGOSHIMA.
NAMES STEPHEN SMITH PRESIDENT & (CEO) OF ITS AS-YET-UNNAMED, LOW-FARE CARRIER, EX-WESTJET (WJI).
SEPTEMBER 2001: INTRODUCES NEW TRAVEL WEBSITE: (http://www.destina.ca).
IN 2001-12, TORONTO TO HONOLULU TO MELBOURNE. TORONTO TO WHITE PLAINS. TORONTO TO HOLGUIN. TORONTO TO PROVIDENCIALES (WEEKLY CHARTER). MONTREAL TO HOLGUIN.
IN AFTERMATH OF TERRORIST ATTACK ON NEW YORK WORLD TRADE CENTER (WTC) TOWERS & PENTAGON, AIR CANADA (ACN) WILL LAY OFF -5,000 EMPLOYEES AND GROUND 84 (55 (ACN), THE REST FROM REGIONAL SUBSIDIARIES). SCHEDULE TO BE REDUCED BY -24%.
A319-112 (1577, C-GITR) DELIVERY.
OCTOBER 2001: GROUNDED 38 737-200'S (20 TO BE TRANSFERRED TO PLANNED LOW-FARE AIRLINE), 17 DC-9'S, 19 F28'S; & 10 B AE 146'S.
NAMES ITS NEW LOW-FARE, NO-FRILLS A320 CARRIER, "TANGO." TANGO WILL USE 13 A320'S ON EXISTING, HIGH TRAFFIC MAINLINE ROUTES (flytango.com) STARTING IN 2001-11. WILL USE A320'S, CONFIGURED 159Y PASSENGERS (PAX). WILL ALSO LAUNCH A WESTERN CANADA-BASED, SHORT-HAUL, LOW-FARE SUBSIDIARY, SO FAR UNNAMED.
737-2T5 (22024), 737-217 (22255) & 2 DC-9-32'S (47199; 47293) WITHDRAWN FROM USE (WFU). 1 767-333ER (30852, C-GHLV), GECAS (GEF) LEASED FOR (CDI) OPERATIONS TO TAMPA.
OTTAWA TO FORT LAUDERDALE. IN 2001-11, TORONTO TO HOLGUIN (WEEKLY CHARTER). IN 2001-12, MONTREAL TO CANCUN (WEEKLY). TORONTO TO PROVIDENCIALES. CALGARY & VANCOUVER TO PHOENIX. CALGARY TO LAS VEGAS (737, 100 PAX) & VANCOUVER TO LAS VEGAS (A319, 112 PAX).
NOVEMBER 2001: TANGO, BY AIR CANADA (ACN) STARTS OPERATIONS WITH NO-FRILLS SERVICE, WITH 13 A320'S, 150Y PASSENGERS (PAX), FROM TORONTO TO 7 CANADIAN, & 3 FLORIDIAN CITIES. TANGO ADDS ST JOHN'S, NEWFOUNDLAND AS ITS 9TH CANADIAN CITY IN ITS NETWORK.
CLOSES ITS MAINTENANCE CONTROL CENTER IN VANCOUVER AT THE OLD CANADIAN (CDI) AND CONSOLIDATES 737/747 CONTROL TO MONTREAL.
747-475 (24883) STORED. 767-38E (25347) RETURNED FROM QANTAS AIRWAYS (QAS). 767-3YO (24948) GROUNDED AT TORONTO. 767-233 (24143) WITHDRAWN FROM USE (WFU). 2 767-35HER'S (26387, C-GHLA; 26388, C-GHLK), ITOCHU (CIF) LEASED. 8 DC-9-32'S (47022; 47195; 47290; 47554; 47592; 47611; 47554; 47598) WFU. 2 A321-211'S (1602, C-GITU; 1611, C-GITY) DELIVERIES.
IN 2002-05, VANCOUVER - ANCHORAGE (737, DAILY NONSTOPS).
FORMS "AC JETZ" TO OPERATE 3 TO 4 48-PAX, EX-CANADIAN (CDI) 737'S, FOR SPORTS TEAMS AND VIP CHARTERS.
DECEMBER 2001: IN 2002-04, SUMMER NONSTOPS, TORONTO TO MADRID & TORONTO TO AMSTERDAM (767-300, DAILY). AIR CANADA (ACN) NOW CONTROLS 80% OF DOMESTIC MARKET.
CHANGES A320 CONFIGURATION TO 20F, 120Y. HAS USA/CANADIAN FLAG DECALS ON ALL A318/A320'S TO SHOW SOLIDARITY AND SUPPORT FOR THE USA. CONVERTS 3 737'S (C-GCPV; C-GCPX; C-GCPZ) INTO A 48F CONFIGURATION FOR ITS (ACN) JETZ, SPORTS CHARTER SUBSIDIARY. 767-233ER (24142) WFU. 1 A319-112 (1630, C-GITT) AND 3 A321-211'S (1623, C-GIUB; 1632, C-GIUE; 1638, C-GIUF) DELIVERIES.
JANUARY 2002: TANGO STARTS ST JOHNS TO HALIFAX TO TORONTO; & HALIFAX TO MONTREAL/OTTAWA. IN 2002-04, TANGO OPERATIONS, REGINA/SASKATOON - TORONTO AND THUNDER BAY TO TORONTO, FOR TOTAL SERVICE TO 12 CITIES. BY SUMMER, WILL HAVE A FLEET OF 9 AIRPLANES, INCLUDING 6 A320'S.
AIR CANADA (ACN) VANCOUVER TO PUERTO VALLARTA/ TO CANCUN (A319). TORONTO TO PROVIDENCIALES (WEEKLY CHARTER). IN 2002-04, (ACN) TORONTO TO MADRID. IN 2002-06, TORONTO TO AMSTERDAM & TO DUBLIN (767'S).
SIGNS 15-YEAR, $250 MILLION, MAINTENANCE PACT WITH ROLLS ROYCE (RRC), FOR (TRENT 722B) ENGINES FOR 8 A330-300 AIRPLANES.
HONOLULU TO MELBOURNE (767-300ER, 212 PAX, 3X-WEEKLY) FROM TORONTO.
2001 = 70.25 BILLION (RPK) TRAFFIC (-3%).
A340-313X (257) WFU.
2001 TOP 50 WORLD AIRLINES - TRAFFIC (BILLION) (RPM):
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
FEBRUARY 2002: LOW-FARE SUBSIDIARY, "TANGO," TO ADD 14 NEW ROUTES TO ITS SUMMER SCHEDULE: IN 2002-05, KELOWNA TO TORONTO; WINNIPEG TO EDMONTON; QUEBEC CITY TO MONTREAL TO WINNIPEG; QUEBEC CITY TO TORONTO; & FREDERICKTON TO ST JOHN TO TORONTO. IN 2002-06, TORONTO TO ABBOTSFORD; TO CALGARY TO VICTORIA; TO DEER LAKE; TO GANDER TO CHARLOTTETOWN & OTTAWA WINNIPEG. EXPANSION WILL INCLUDE 8 737-200'S AND 13 A320'S. IN 2002-04, TANGO OPERATIONS, TORONTO TO THUNDER BAY, TORONTO TO REGINA TO SASKATOON (A320). TANGO ADDS WINDSOR AND LONDON, ONTARIO, FOR TOTAL 23 CANADIAN DESTINATIONS.
4TH QUARTER = -$238 MILLION/-C$380 MILLION (-C$274 MILLION/-$51.3 MILLION). 2001 = -$788 MILLION/-C$1.25 BILLION (+$51.54 MILLION): 41.65 BILLION (RPM) TRAFFIC (-2.1%); -3.5% (ASM) CAPACITY, 72.9% LF (+1).
AIR CANADA CARGO MOVES TO NEW 290,000 SQ FT FACILITY AT TORONTO PEARSON, INCREASING ITS CAPACITY BY +50%.
MARCH 2002: NEXT MONTH, CODE SHARE WITH SPANAIR (SPP), TORONTO TO MADRID.
CODE SHARE WITH THAI INTERNATIONAL (TII), LONDON TO BANGKOK.
DONATES DC-9 TO CANADA AVIATION MUSEUM, OTTAWA. CONVERTS ITS 1ST "TANGO" 737 (C-GCPS) TO 117Y PAX.
APRIL 2002: AIR CANADA REGIONAL ROLLS OUT ITS NEW LOGO AND BRAND NAME "AIR CANADA JAZZ."
5-YEAR EXTENSION OF AGREEMENT WITH CANADA POST CORPORATION, FOR CARRIAGE OF MAIL AND CORPORATE PASSENGER (PAX) TRAVEL, INCLUDING 35 MILLION KG/YEAR OF MAIL, UTILIZING >200 DAILY FLIGHTS.
CALGARY TO HALIFAX. TORONTO TO MANCHESTER & GLASGOW.
MAIN BASE: MONTREAL TO DORVAL AIRPORT (YUL).
HUBS: VANCOUVER INTERNATIONAL AIRPORT (YVR); & TORONTO (PEARSON INTERNATIONAL) AIRPORT (YYZ).
May 2002: 5th anniversary of Star Alliance (SAL): (ACN); (ANZ); (AUL); (BMA); (CMA); (DLH); (LAL); (SAS); (SIA); (TII); Tyrolean; (UAL); & VAR).
2 737-275's (21115; 21639), stored at Mojave. 2 DC-9-32's (47195; 47290), WFU at Mojave.
June 2002: (ACN) Jazz, Montreal to Charlottetown.
2001 Top World Airlines by Traffic (RPK) (Billion):
1 UAL 187.67; 2 AAL 170.88; 3 DAL 163.66; 4 NWA 117.66; 5 BAB 106.27; 6 CAL 98.37; 7 AFA 94.42; 8 DLH 86.70; 9 JAL 84.27; 10 USA 73.93; 11 SWA 71.59; 12 SIA 69.15; 13 QAN 67.89; 14 ACN 67.03; 15 KLM 57.85; 16 ANA 56.90; 17 CAT 44.79; 18 TII 44.04; 19 IBE 41.30; 20 KAL 38.45; 21 MAS 38.31; 22 ALI 36.52; 23 SWS 32.98; 24 TWA 31.85; 25 AMW 30.69.
Air Canada (ACN) 2001: -$788.14 Million (+$51.54 Million): 67.02 million (RPK) traffic (-2.1%); 72.9% LF (+1); 23.10 Million (FTK); 40,000 employees (-11.1%).
737-275 (22266) WFU, stored in desert. 2 767-3YOER's (PW4000) (24999, C-GHPD; 25000), ex-Spanair (SPP), (GECAS) (GEF) leased. 1 A319-112 (1765, C-GJWF) & 2 A321-211's (1623, C-GIUB; 1772, C-GJWI), deliveries. A340-313 (093) returned to (ILF).
July 2002: Caters to corporate clients and sports teams with Air Canada Jetz division, which currently utilizes 2 737-200's in all-Executive Class configurations, including 737-217 (861-22658, C-GCPZ).
737-275C (21294) sold to First Air (BRS). A321-211 (1783, C-GJWN) delivery.
August 2002: SITA: YMQHHAC.
In 2002-11, code share with El Al (ELA), Toronto to Tel Aviv.
65th anniversary! Paints A320-211 (159, C-FFWN) in a "Symphony of Voices" color scheme, proudly displaying a Canadian flag, formed out of 40,000 employees names.
3 767-233ER's (24325; 22524; 22527) WFU, stored at Mojave. A320-212 (427, C-GJUL), (GAX) leased; 3 A321-211's (674, C-GKOH; 675, C-GKOI; 684, C-GKOJ), ex-Air France (AFA), (GATX) (GAX) leased.
September 2002: Subsidiary "(ZIP) Air" (WZP) starts service with 15 flights/day with 6 737-200's: 1 737-2T5 (22024, C-FHCP; 5 737-217's (21717, C-GCPN; 21718, C-GCPO; 22255, C-GCPP; 22728, C-GJCP; 22864, C-GMCP). Fleet will grow to 20 airplanes. ZIP (WZP) service Calgary to Vancouver; Calgary to Winnipeg; Edmonton to Vancouver/Winnipeg.
In 2002-02, Tango service, Montreal, Ottawa, Quebec City to Fort Lauderdale; & Montreal to Orlando.
Will furlough 1,300 employees (including -900 Cabin Attendants (CA), & -400 airport staff) as peak travel season ends.
(ACN) Jazz, Vancouver to Saskatoon, and Montreal to Mont Joli. In 2002-11, (ACN) Jazz to Atlanta.
737-242C (21728, C-GNDC) sold to (BRS). 737-275 (22807) withdrawn from use (WFU). Adds 737-200 (C-FCPM) to Jetz operations. Donates DC-9-32 (711-47021, C-FTLL) to Canadian Aviation Museum, Ottawa. 1 A319-112 (1805, C-GKNW), & 1 A321-211 (1811, C-GJWO) deliveries.
October 2002: In 2003-06, to launch another separate airline, named "Elite," to operate 10 A319's with 40 business (C) passenger seats, and offer regular business class fares. Initially, the Toronto to Vancouver route, is most likely, to be followed by international services, including to London Heathrow (LHR). Also, studying forming a separate, international airline, for leisure passengers.
1st 6 months Top World Airlines Traffic Billion (RPK):
1 AAL 95.18; 2 UAL 84.56; 3 DAL 74.53; 4 NWA 56.50; 5 BAB 49.30; 6 AFA 48.21; 7 CAL 47.49; 8 DLH 42.06; 9 JAL 39.44; 10 SWA 36.03; 11 SIA 36.00; 12 ACN 33.69; 13 USA 33.06; 14 KLM 27.54; 15 CAT 23.07; 16 IBE 19.53; 17 KAL 16.47; 18 CHI 15.70; 19 AMW 15.20; 20 ALI 14.21; 21 EAD 13.45; 22 VAR 12.68; 23 GUN 12.49; 24 SAS 12.01; 25 BEJ 10.32.
(ACN) Jazz, Winnipeg to Thunder Bay.
737-275 (22159, C-GNPW), WFU at Mojave. A320-214 (1864, C-GKOD) (ILF) leased. A321-211 (1794, C-FZVF) delivery. F28-1000 (11050) of (ACN) Jazz, WFU at Saskatoon.
November 2002: Code share with Spanair (SPP), Madrid to Alicante, Bilbao, Las Palmas, Tenerife, & Valencia. Code share with Star Alliance partner (DLH), via Frankfurt, to Venice and Bologna. Next month, code share with Varig (VAR), to Calgary, Ottawa, Montreal, and Vancouver, which connect with (ACN)'s Sao Paulo to Toronto flight. Also, code shares with (VAR), Sao Paulo to Buenos Aires, Porto Alegre, Rio de Janeiro, Salvador, and Santiago.
Government of Quebec, agrees to purchase # C$2.5 Million of travel/year from (ACN) for official travel.
Since last spring, (ACN) became 1 of the few airlines to implement Six Sigma methodology. Captain Robert Giguere, Executive VP Operations, who has spent most of the past year meeting with employees across the country, stated "We are aligned in fulfilling our mission of maintaining operational excellence and customer service, 2nd to none. Once areas for improvement are identified, we roll right into a Six Sigma product that will make the process more efficient." By 2005, all management employees (approximately 3,000) are required to attain Six Sigma Green Belt (part time assignment) status. It is intended to drive issues and improvements from the bottom up, and across branches & departments. All employees, including frontline, have roles to play in finding solutions and areas to improve. It is not about adding more work, but about getting to the root of issues, and working smarter. The Master Black Belt and Black Belt take a 2 to 3 year, full-time commitment.
To furlough -400 employees, due to sagging traffic.
1st 9 months Top World Airlines Traffic (RPK) Billion:
1 AAL 148.39; 2 UAL 132.89; 3 DAL 123.75; 4 NWA 88.26; 5 BAB 76.23; 6 AFA 74.00; 7 CAL 73.12; 8 DLH 67.07; 9 SIA 55.60; 10 SWA 55.20; 11 JAL 54.81; 12 ACN 54.41; 13 USA 50.38; 14 KLM 48.87; 15 QAN 43.76; 16 CAT 36.14; 17 IBE 30.78; 18 KAL 28.06; 19 AMW 23.82; 20 TII 19.76; 21 ALI 19.68; 22 SAS 18.82; 23 CHI 18.23; 24 VAR 17.47; 25 GUN 17.21.
Inflight Canada, completes 1-year testing on (ACN) 767-300, of design, that relocates PAX seat boxes (IFE), under the floor, in air-cooled structural cluster, seat-to-seat harnesses run, within subfloor, integrated raceways.
World Airline Entertainment Association (WAEA) awards Air Canada (ACN)'s "enRoute" in-flight magazine as "Best In-flight Entertainment Guide" & "Best Single Special Purpose Video" for its passenger boarding video.
Implements Canada's 1st Flight Operations Quality Assurance (FOQA) program, to automatically collect data on a real-time basis for subsequent processing and analyzing. Expected benefits including improvements to operating & training procedures, revision to airport & Air Traffic Control (ATC) procedures, improved engine & airplane performance assessment, and fuel cost savings.
737-217 (22259, C-GSWA) transferred to (ZIP). 737-275 (21639) sold to (FAA). 2 737-275 (22264; 22874) stored at Mojave. DC-9-32 (47198) sold to (C-S) Aviation (CSV). F28-1000 (11043) of (ACN) Jazz WFU at Saskatoon. A320-214 (1874, C-GKOE) delivery.
December 2002: To expand code share with Thai Airways International (TII), Vancouver to Bangkok, via Tokyo.
In 2003-02, Air Canada (ACN) ZIP will add 2 737-200's for total 10 737-200's, 117 PAX, fleet. Will expand service between Winnipeg and Montreal, Winnipeg, and Ottawa, and Calgary and Abbotsford, replacing (ACN) network flights. New flights between Calgary and Victoria. In 2003-01, Vancouver to White Horse.
Streamlines its (ACN) Jazz operations, by reducing its workforce by -391 employees (-9%), after already cutting -100 flight attendants (CA), and 26 airport jobs.
Plans to move exclusively to e-ticketing for domestic travel in 2003-01, and expand the policy to USA to Canada, later in 2003, and later for international routes.
"Airline Business" magazine, rates (ACN) Technical Services, 9th among 45 world leading Maintenance Repair & Overhaul (MRO) organizations, based on total revenues for 2001, 1st in Canada, and 4th in North America. It secures C$67 Million/$43 Million component and airframe (MRO) agreement covering Skyservice (SKB) A320's, including options that if exercised, could bring the total value to C$85 Million.
Nav Canada is investing C26 Million, to enhance air traffic safety by installing new Airport Surface Detection Equipment (ASDE), a radar-based system that allows air traffic controllers to monitor and direct airplanes and vehicle movements, on airport surfaces (over next 3 years, at 8 airports across Canada: St John's, Halifax, Quebec City, Montreal Dorval, Ottawa, Winnipeg, Calgary, and Vancouver. (ASDE) is already in operations at Toronto's Pearson Airport).
747-475 (25422), returned to Pegasus (PSS). A319-112 (1853, C-GKOB) delivery. 2 A320-211's (309, C-FLSU; 310, C-GQCA), for "TANGO" operations.
January 2003: Following United Airlline's (UAL) withdrawal from New Zealand, Air Neew Zealand (ANZ) has expanded its code share with Air Canada (ACN), from Sydney and Auckland to Los Angeles, + continuing flights to Calgary, Montreal, Vancouver, and Toronto. Also, Honolulu to Los Angeles (LAX).
3 years after a bitter takeover battle, Air Canada (ACN) and Onex Corp entered into an agreement, under which Onex will pay (ACN) approximately C$245 Million/$160.7 Million for a 35% equity interest in Aeroplan, (ACN)'s loyalty program. As part of the transaction, (ACN) will hold a C$200 Millionj note payable by Aeroplan and Onex will hold a C$52.5 Million note from Aeroplan. For (ACN), the transaction values Aeroplan and its related commercial agreements at C$900 Million, but that could increase to C$1.2 Billion based on certain performance criteria and other earn-outs. Under the terms of the agreement, proceeds to (ACN) could increase from C$245 Million to C$350 Million if the full earn-out amounts are achieved. After approximately 2 years, a value increase will be payable in cash or achieved through a dilution of Onex's interest. Onex will also have representation on Aeroplan's board and approval rights over fundamental decisions.
(ACN) Cargo, Northwest Airlines (NWA) Cargo, United Airlines (UAL) Cargo and Unisys Corp, announced that Cargo Portal Services (CPS), an internet-based portal that allows users to book and manage shipments, is "live." (CPS) is available to freight forwarders, free of charge.
"AC JETZ" HAS 4 737-217's (22260, C-GCPV), 52C; (22341, C-GCPX), 60C; (22658, C-GCPZ), 48C; & (22761, C-FCPM), 52C.
3 737-275's (21819; 22873; 22874) WFU, stored at Mojave. A319-112 (1886, C-GKOC) delivery.
February 2003: In 2003-03, Vancouver - Nagoya. Vancouver - Boston (daily). In 2003-04, Toronto - Manchester, and Calgary - Halifax.
(ACN) ZIP, Calgary & Winnipeg to Montreal, Ottawa, Abbotsford, and Victoria (737, daily). In 2003-03, (ACN) (ZIP), London (Ontario) - Calgary.
(ZIP) Air has modified its livery to a white fuselage with the solid (ZIP) signature colors on the tail.
(ACN) Jazz, Toronto - Kansas City/Milwaukee/Nashville/St Louis.
Code share with Air One (ADH), Rome (Fiumicino) - Catania/Lamezia Terme/Palermo/Venice. In 2003-05, Toronto - Copenhagen (767, daily nonstop summer season).
4th Quarter 2002 = -C$764 Million (-C$277 Million). 2002 (unaudited) = -C$428 Million/-$282 Million (-C$1.3 Billion): 69.40 Billion (RPK) traffic (+3.6%). Contributing to the deteriorating position were excess capacity in the domestic market, combined with soaring fuel prices. Robert Milton, (CEO), stated "the world has changed forever" and asked employees for labor cost reductions "in the range of -C650 Million/-$430 Million anually" representing 22% of (ACN)'s C$3 Billion annual labor budget.
In addition to seeking labor cost savings, plans were announced to sell up to 49% of (ACN) Technical Services, its maintenance operation, as well as a "significant stake" in its ground-handling unit, which will be transformed into a stand-alone subsidiary. It also said it would form a new subsidiary to house its cargo operation.
It is considering the sale of its money-losing Regional subsidiary, "Jazz."
2 737-217'S (22257; 22659) & 737-2T7 (22762, C-FCPN), transferred to Zip. 767-233 (22522), WFU at Mojave.
March 2003: Adds a technical (crew change) stop in Larnaca for its Montreal - Tel Aviv service. Code share with Mexicana (CMA), Mexico City - Caracas. In 2003-05, code share with Lufthansa (DLH), Munich - Montreal (A340, daily nonstop), and Germany to Moscow, St Petersburg, Kiev, Prague, Budapest, Oslo, Copenhagen, Stockholm, and Gothenburg. In 2003-06, Montreal-Rome (767-300ER, 3/week, nonstop) and Montreal - Beirut (767-300ER, 3/week nonstop). Tango: Toronto - St Johns.
Air Canada (ACN) Technical Services (ACTS) entered into a 5-year supply agreement with Heico Corp, providing for a "strategic relationship" between Heico's Flight Support Group and (ACTS). Subject to the terms of the accord, (ACTS) agreed to purchase newly developed parts and almost all applicable Heico Aerospace (FAA)-approved replacement parts on an exclusive basis.
Due to poor economy and decreased travel because of Iraq war, will cut -3,600 jobs (-10% union, & non-union by -20%), as well as its flight schedule (-8% capacity for 3/03, & -15% 2003-04 & 2003-05) to cut costs by -C$650 Million/year. At end of 2002, (ACN) had 34,800 full time-equivalent employees.
37,476 employees. SITA: YMQHHAC.
Parent organization/shareholders: Institutions (70%); retail (19%); employees (11%).
737-217 (21716, C-GCPM) transferred to ZIP. 747-233B sold to Kalitta Air (KAC). 1 747-400F Atlas Air (TLS) wet-leased, for Toronto - Hong Kong (2/week).
April 2003: Declaring that "the business model is broken and it must be fixed without burning any more furniture," Robert Milton, President & CEO, took (ACN) into bankruptcy under Canada's Creditors Arrangement Act, broadly the equivalent of USA Chapter 11 protection.
In 2003-05, (ACN) (ZIP) (WZP) Vancouver - Winnipeg (737, daily); & Saskatoon - Vancouver/- Winnipeg.
World Top 20 Airlines 1st Quarter Traffic (Billion) (RPK)
1 (AAL) 44.67; 2 (UAL) 39.66; 3 (DAL) 36.82; 4 (NWA) 26.65; 5 (BAB) 23.31; 6 (AFA) 23.27; 7 (CAL) 21.35; 8 (DLH) 20.62; 9 (SWA) 17.53; 10 (KLM) 14.04; 11 (USA) 13.28; 12 (SIA) 12.20*; 13 (ACN) 9.65*; 14 (CAT) 8.51*; 15 (AMW) 7.84; 16 (QAN)* 7.18; 17 (KAL)* 6.72; 18 (IBE) 6.17*; 19 (EAD) 5.69*; 20 (AAT) 5.42. * 2 mths only.
737-217 (22658, C-GCPZ) transferred to (Zip) (WZP). 767-3S1 (35221) returned to AFT leasing.
May 2003: Air Canada (ACN) pilots (FC) agree to provide a -10% wage reduction during 2003-06 & 2003-07.
Severe Acute Respiratory Syndrome (SARS) virus epidemic in Asia results in (ACN) cutting capacity by -17% (ASM) in 2003-06 to 2003-08 and parking -40 airplanes. For that time, will also close its heavy maintenance bases in Calgary, Montreal, and Vancouver.
Terminated -400 non-unionized and management employees and will lay off another -400 as part of its plan to reduce its workforce by -3,600 people.
Fiscal Year (FY) 2002 = -C$828 Million (versus then unaudited - C$428 Million reported earlier) (-C$1.3 Billion).
Alongside the launch of its revamped website: (http://www.aircanada.com), Air Canada (ACN) unveiled a new fare structure for domestic flights, comprising 5 fare categories: Fun, Latitude, Freedom, Econo, and Flash. Frequent-flier mileage points vary, depending on the fare category.
By 2003-06, will implement e-ticketing throughout North America.
Is deferring 2 A340-500's due this month and 3 A340-600'S due in 2004.
737-217 (22342) and 737-275 (23283) transferred to Zip (WZP). 767-35HER (26389, C-GGBJ), returned to CIT (TCI).
June 2003: Air Canada (ACN) Jazz, Toronto - Dallas, in 2003-07, Toronto - Moncton/Providence, Montreal - Charlottetown, Toronto - Quebec City. In 2003-07, Zip (WZP), Victoria - Edmonton.
July 2003: 2002 = -$273.1 Million (-$849 Million): 69.40 Billion (RPK) traffic (+3.6%); +.4% (ASK) capacity; 75.3% LF (+2.3); 23.1 Million passengers (PAX); 1.91 Billion (FTK) (+1.5%); 35,205 employees (+1.7%).
2002 TOP 25 WORLD AIRLINES - TRAFFIC - Billion - (RPK)
1 (AAL) 195.81; 2 (UAL) 176.15; 3 (DAL) 152.66; 4 (NWA) 115.91; 5 (BAB) 99.71; 6 (AFA) 96.80; 7 (CAL) 95.51; 8 (DLH) Grp 88.57; 9 (JAL) 83.54; 10 (QAN) 75.23; 11 (SWA) 73.05; 12 (SIA) 71.12; 13 (ACN) 69.42; 14 (USA) 69.42; 15 (KLM) 58.89; 16 (ANA) 52.97; 17 (CAT) 49.04; 18 (TII) 48.51; 19 (KAL) 41.80; 20 (IBE) 40.47; 21 (MAS) 36.90; 22 (AMW) 31.98; 23 (SAS) Grp 30.91; 24 (EAD) 30.17; 25 (ALI) 29.84.
2002 TOP 25 WORLD FREIGHT CARRIERS - Billion - (FTK):
1 (FED) 13.20; 2 (LUB) 7.16; 3 (UPS) 6.62; 4 (KAL) 6.25; 5 (SIA) 6.08; 6 (AFA) 4.87; 7 (CAT) 4.85; 8 (CHI) 4.60; 9 (JAL) 4.39; 10 (CLX) 4.16; 11 (BAB) 4.12; 12 (KLM) 3.99; 13 (EVA) 3.28; 14 (NWA) 3.24; 15 (AAL) 2.93; 16 (UAL) 2.79; 17 (AAR) 2.75; 18 (NCA) 2.21; 19 (POA) 1.97; 20 (EAD) 1.96; 21 (MAS) 1.92; 22 (BEJ) 1.88; 23 (TII) 1.824; 24 (DAL) 1.823; 25 (ACN) 1.58.
In 2003-10, Toronto - Delhi (A340, daily nonstop).
Announces a series of high-level management retirements and departures, including Robin Wohnsigl, Senior VP (ACN) Maintenance & Aircraft Programs ("to pursue other interests"), Ross MacCormack, Senior VP International & Alliances (after 32 years), Doug Port, Senior VP Customer Service (after 30 years), Steve Markey, VP Govt Relations & Regulatory Affairs, and Alice Keung, VP Information Technology (IT). Also, -300 management and nonunionized positions are being eliminated, bringing total layoffs among such employees to -1,100, a payroll cost reduction among the group of -40%.
2002 = -$525.30 Million (-$834.20 Million): 69.42 Billion (RPK) traffic (+3.6%); 75.5% LF; 23.43 Million passengers (PAX) (+.1%); 1.58 Billion (FTK) freight (-.6%).
2 737-275's (22266; 22807) returned to Triton (TIA). 3 737-275's (21713; 22159; 22264) WFU at Mojave. 737-296 (22276), returned to Arkia (ARK). A319-112 (1963, C-FWTF) & A320-214 (2018, C-FXCD) delivery. 747-475 (24895) & 767-233ER (22528) returned to lessor. 767-3YOER (24948) WFU.
August 2003: Air Canada (ACN) Technical Services secures a C$139 Million/$99 Million, 6-year agreement with JetBlue Airways (JBL) for maintenance, repair & overhaul (MRO) of its A320's (45 A320's + 107 firm orders), with heavy maintenance starting at its Winnipeg (MRO) center this month.
Toronto - New Orleans. Air Canada (ACN) Jazz, Toronto - Halifax, & Toronto - Charlottetwon (weekends). In 2003-10, (ACN) Tango, Vancouver - Montreal/Ottawa, Calgary - Montreal/Ottawa, & Edmonton - Montreal/Ottawa. (ACN) Jetz Toronto to Nassau (CRJ, Charter).
(ARINC) installed a digital voice communications system for use by Air Canada (ACN)'s flight dispatching operations across North America.
737-217 (22256) transferred to (ZIP) 737-275 (21819, C-GKPW), returned to lessor. 767-233 (22526) WFU at Mojave. 767-3S1ER (26608) WFU. DC-9-32 (47598) sold to (C-S) Aviation (CSV).
September 2003: In winter, Calgary, Toronto, London, Ottawa, Montreal, Moncton, and Halifax, to Cuba's Varadero, Holguin, Cayo Largo, Cayo Coco, and Havana. In October 2003, Toronto - Punta Cana. In 2003-11, Montreal - Punta Cana (2x-weekly), Toronto - Aruba/Puerto Plata, Toronto - Cozumel (A319, weekly). Toronto - Atlanta, Kansas City, Milwaukee, Nashville, St Louis, & White Plains. Montreal - San Francisco, Calcary - Phoenix, and Vancouver - Whitehorse. In 2003-12, Hong Kong - Toronto (eastbound only, westbound via Vancouver). Toronto San Jose (A319, 3/week). Toronto - Daytona Beach (CRJ, 2/week). Vancouver - Kona (767-300ER, weekly). Calgary - Cancun (A319, 2/week). Calgary - Ixtapa (A319, weekly). Calgary - Puerto Vallarta, Toronto - La Romana (weekly). Toronto - Santiago - Buenos Aires (A319, 3/week). Vancouver - Puerto Vallarta (A319, weekly). Calgary, Montreal, & Winnipeg - Montego Bay (A320, weekly). Montreal - Purto Plata (2/week). Ottawa - Punta Cana (weekly). Vancouver - Cancun (A319, weekly). Winnipeg - Punta Cana (weekly). London (Ontario) - Orlando (A320, weekly). London (Ontario) - Punta Cana (weekly). In 2004-02, Halifax - Orlando (A319, weekly). Halifax - Punta Cana (weekly). Halifax - Cancun (A319, weekly). Halifax - Montego Bay (weekly). Moncton - Punta Cana (weekly). Halifax - Barbados (A320, weekly).
Operated its last (ACN) Tango flight.
In 2003-11, (ACN) Jazz Toronto - Quebec City, Thunder Bay and Montreal - Halifax. Montreal - New York (LGA)
2 737-217's (22260; 22341) returned to lessor. 767-233 (22525) returned to lessor. DC-9-32 (47195, C-FTLT) donated to Confederation College, Thunder Bay.
October 2003: Toronto - Delhi (A340, 282 PAX, daily nonstop). Montreal - Barbados (weekends). Toronto - Cayo Coco/Punta Cana (Suns). Toronto - Cozumel/Puerto Plata/Varadero (Sats). Next month, Toronto - Providenciales/Puerto Vallarta (Sats). Toronto - Kelowna (weekends). Toronto - Havana (3/week). Toronto - San Juan (Sats). Montreal - Nassau (weekends). Montreal - Winnipeg. Vancouver - Miami (weekends). Vancouver - Victoria. Code share with (BMI) British Midland (BMA), London Heathrow (LHR) to Amsterdam and Brussels. Also, between Canada and the UK & the USA.
(ACN) Jazz in 2003-11, Toronto - Boston, Manchester, Raleigh, Montreal - Deer Lake, Hartford, Newark, Vancouver - Calgary, Halifax - Montreal, St John's, & Toronto - New York (LGA).
Painted A319 (254, C-FYJD) to support its participation in the "Kids" Horizons Hospital Transportation Program," a donation of 2,700 seats to children's hospitals in Canada. (ACN) Jetz receives 1st of 4 A320-211's (210, C-GQCA) with J60 layout. Reached new lease agreements with European credit agencies for 22 A319's, 8 A330's and 8 A340's. Has completed (MOU) for revised leases with 4 lessors for an additional 14 airplanes, for a total 184 airplanes. Together with Jazz, is in the process of finalizing agreements with 6 lessors for another 23 airplanes.
November 2003: Receives temporary OK to operate Toronto - Delhi nonstop over Russian air space.
Next month, to expand its code share with (BMI) British Midland to London - Palma de Mallorca.
Will receive a C$650 Million/$495.3 Million bailout from a Hong Kong-based businessman, Victor T K Li (who controls Trinity Time Investments), whose equity bid for a 31% stake was accepted over Cerberus Capital Management, a New York-based investment group, which is expected to bring Air Canada (ACN) closer to emerging from bankruptcy.
737-217 (22865, C-GQCP) transferred to (Zip) (WZP). 767-3YOER (26200) returned to (GECAS) (GEF). A319-112 (1742, C-GJVY) returned to (ILF). A320-211 (283, C-FLSI) returned to (GEF).
December 2003: Receives a scheduled license to operate to Granada between 2003-12 to 2004-04.
Montreal to San Jose (Costa Rica), and Havana (A319, 2 class, 3/week). Toronto - Havana (3/week). Toronto - Kelowna (Saturdays). Ottawa - Fort Lauderdale (weekends). Montreal - Holguin (2/week). Toronto - Holguin (weekends). Montreal/Toronto - Cayo Largo del Sur (Sundays). Ottawa - Varadero (Sundays). Calgary - Varadero (Mons). Also, Montreal - Santiago with continuing service to Buenos Aires (767-300ER, 209 PAX, 3/week).
Jazz Air, Toronto - Houston.
$1.3 Billion, 45/45 orders (2004-09) Bombardier CRJ's (15 CRJ-200's & 30 CRJ705's), 74Y, and $1.35 Billion, 45/45 orders (2005-11) Embraer E190's, 93Y. A320-214 (2145, C-FZQS) delivery.
January 2004: Star Alliance (SAL) Air Canada (ACN) is one of 15 members) signed a 5-year Information Technology (IT) accord with (BEA) Systems Inc, San Jose, California, an application infrastructure software firm. The contract gives Star (SAL) Alliance's 15 members "the opportunity to introduce (BEA)'s innovative application platform suite at a cost no single airline would be able to negotiate" said Michael Stagl, Star (SAL) Alliance (CIO). United Airlines (UAL), Lufthansa (DLH), & Singapore Airlines (SIA), as well as the alliance itself, have developed ticketing, baggage handling, and loyalty software applications on the (BEA) WebLogic platform in recent years. Under the new agreement, (BEA) WebLogic Server and (BEA) WebLogic Integration become Star (SAL) Alliance's preferred application server and integration software.
February 2004: In April 2004, code share with British Midland (BMA) Manchester - Toronto.
To transfer 20 of its 48 A319's to ZIP (WZP) to replace 12 737-200'S to be retired along with 9 mainline 737-200's by end of 2004.
March 2004: Code share with Air Jamaica (JAM), Toronto - Kingston and Montego Bay. Code share with Austrian Airlines (AUL), Montreal to Vienna. In April 2004, (ACN) Jazz Air, Toronto - Quebec City (Suns). In June 2004, code share with Lufthansa (DLH), Montreal to Munich. Toronto - Caracas (A319, 120 PAX, 3/week), - Bogota (A319, 3/wk), and in November 2004, - Lima (767-300, 313 PAX, 3/week).
April 2004: Fiscal Year (FY) 2003 = -C$1.87 Billion/-$1.43 Billion including C$1.05 Billion in noncash reorganization and restructuring expenses (+$525.28 Million): 59.51 Billion (RPK) traffic (-14.1%); 74.1% LF; 20.04 Million passengers (PAX) (-14.5%); 1.28 Billion (FTK) freight (-18.6%).
Moved its domestic and international operations to the new Terminal 1 at Toronto Pearson Airport.
Vancouver - Nagoya. In May 2004, Montreal - Edmonton - Vancouver. Vancouver - Anchorage. In June 2004, Toronto - Caracas (3x-weekly). Toronto - Bogota (3x-weekly). In November 2004, Toronto - Lima (3x-weekly).
Bill Bredt, President (ZIP) Air, replaces Steve Smith, now Senior VP Customer Experience. Rob Reid, Senior VP Operations with responsibility for Air Canada Technical Services (ACTS). Ben Smith, VP Planning. Duncan Dee, Senior VP Corporate Affairs is also responsible for Corporate Security & Risk Management and Safety & the Environment. Yves Dufresne, VP International & Regulatory Affairs, with responsibility for (ACN)'s international and alliance activities.
767-233 (22519), WFU at Mojave.
May 2004: Michael Welch, General Manager, Toronto Airport, ex-Continental Airlines (CAL).
Next month, Toronto - Glasgow, Amsterdam, Zurich. Vancouver - Boston. Halifax - Calgary. Toronto - Dublin - Shannon - Toronto.
737-2T7 (22761) returned to lessor.
June 2004: Zip Air (WZP) is to be absorbed back into Air Canada (ACN) in November 2004, as the cost base for mainline is now the same.
Bill Zoeller, President & (CEO), Air Canada Technical Services. Ron Elvidge, VP & (COO) of the business unit.
5-year contract with e-Travel, the e-commerce business unit of Amadeus GTD, under which e-Travel will provide online booking technology and services to (ACN)'s travel booking websites for consumers and travel agencies. Will migrate its consumer, travel agency and destina.ca sites to e-Travel Planitgo from a booking engine that was developed in house in conjunction with (IBM), (ACN)'s technology partner. (ACN) has also developed Latitude Pass, designed for frequent travelers, who can purchase 10 or 20 flight credits and manage them online via a flight wallet.
(ACN)'s online sales tripled in 2003 and more than half of its domestic bookings are made on its consumer and travel agency Web sites.
Cargo operations, Toronto - Calgary - Vancouver - Toronto (727-200F, All Canada Express (EXM) wet-leased, weekdays).
Air Canada (ACN) 4-year contract to (ARINC) to maintain all of (ACN)'s 3,200 Ultra High Frequency (UHF) ground radios and systems located at 18 airports across Canada. (ARINC) will also provide a fully managed radio support program, incl centralized equipment purchasing and program management.
Star Alliance (SAL): Air Canada (ACN); Air New Zealand (ANZ); All Nippon Airways (ANA); Asiana (AAR); Austrian (AUL); Blue 1 (applicant); bmi (BMA); (LOT) Polish Airlines; Lufthansa (DLH); Scandinavian (SAS); Singapore Airlines (SIA); South African Airways (SAA) (applicant); Spanair (SPP); (TAP) Air Portugal (applicant); Thai Airways (TII); United Airlines (UAL); US Airways (USA); & Varig (VAR).
(ACN) accepts an investment proposal from New York-based Cerberus Capital Management under which the firm will invest # C$250M/$183.8M in convertible preference shares, equivalent initially to 9.2% of the reorganized airline.
In conjunction with the C$850 Million raised through a Deutsche Bank Stand-By Purchase Agreement, (ACN) will have C$1.1 Billion in new funding with which to complete its bankruptcy reorganization, set for end of September 2004.
July 2004: Toronto-Bogota; - Caracas (3/week nonstop). Code share with (LOT) Polish Toronto - Warsaw, Gdansk, Krakow, Katowice, Posnan, Wroclaw, Rzeszow, & Szczecin.
All 737-200's will be retired by end of 2004. All remaining 747-400's to be retired by 10/04, and 1 767-200. 3 A320's to be returned to lessors in /05, 2 A319's & 2 A320's in 2006, & 5 A320's in 2007. A340-541's (445, C-GKOL; 464, C-GKOM) deliveries.
August 2004: General sales agency (GSA) agreement with Volga-Dnepr (VDA) to act as (VDA)'s exclusive (GSA) to the Canadian governmental agencies for the provision of An-124-100 & Il-76 charter services.
(ACN) creditors voted overwhelmingly to approve its reorganization plan, which should allow it to emerge from bankruptcy on schedule at the end of next month.
767-233 (92-22526, C-GAVA), returned to lessor.
September 2004: Next month, Toronto - Buenos Aires - Santiago (3/week). In April 2005, to resume Toronto - Rome (767-200ER, daily).
Is forming Air Canada Cargo as a separate Quebec corporation, initially responsible for belly cargo. CargoJet (CJT) began flying Hamilton - Calgary - Vancouver - Hamilton (727-200F, 4/week) for Air Canada (ACN) Cargo.
Contingent on emerging from bankruptcy protection, has signed a $2.45 Billion contract for up to 90 Bombardier CRJ's for subsidiary (ACN) Jazz operations: 15 orders (11/04) CRJ200's, 15 orders (6/05) CRJ700 Series CRJ705LR's (launch customer), +15 conditional orders, +45 options.
767-233 (22521) retired and to be used as a fire trainer at Montreal.
767-233 (22528) scrapped at Mojave.
October 2004: After 18 months, (ACN) emerged from bankruptcy protection. Analysts' predictionc for the carrier's odds of success are mixed. Canada's federal transport minister is looking into expanding the open skies agreement between the USA & Canada to allow for cabotage.
Toronto - Fort Myers, Kansas City, Nashville, Raleigh, St Louis, West Palm Beach, Montreal - Las Vegas (2x-weekly), Toronto - Aruba, Cozumel, Providenciales, Puerto Vallarta (Sats), Montreal - Orlando, Tampa (Sats), Ottawa - Orlando (Sats), Vancouver - Kahului (Sats).
November 2004: MD-11F, Gemini Air Cargo (GMN) wet-leased for (ACN) Cargo operations between Toronto and Frankfurt. All Canada Express (EXM) will assume this contract once it has acquired DC-10F's.
Next month, Calgary - Phoenix, Ottawa - Fort Lauderdale (weekends), Montreal - Barbados (Suns), Vancouver - Kelowma, Montreal - St John's, Toronto - Holguin, Kona, La Romana, Cayo Largo del Sur, Montego Bay, Nassau, West Palm Beach (Sats), Ottawa - Punta Cana (Sats), Calgary - Montego Bay (Sats), Vancouver - Cancun, Kona, Puerto Vallarta (Sats), Toronto - Cayo Largo del Sur (Suns), Montreal - Holguin (2x-weekly), Otaawa - Varedero (Suns), Calgary - Ixtapa, Varadero, Punta Cana (Sundays), London (YXU) - Punta Cana (Mondays), Calgary - Puerto Vallarta (Mondays), Vancouver - Varadero (Mondays), Winnipeg - Montego Bay (Fridays), Vancouver - Punta Cana (Fridays), Sydney - Vancouver (A340-500, daily northbound only). Jazz Air, Calgary - Victoria, Vancouver - Whitehorse. In January 2005, Toronto - Port of Spain - Caracas - Toronto (4x-weekly).
737-2L9 (22072, C-FACP) returned from Zip (WZP). 2 767-200's to be returned to service in 12/04, after storage at Mojave. Becomes launch customer for E175 with 15/15 orders (2005-07) of the 73Y PAX regional jet, with order/options valued at $840 Million.
December 2004: Lufthansa Systems implemented e-ticket interlining between Air Canada (ACN) and Lufthansa (DLH).
Air Canada Technical Services (ACTS) has 5-year agreement to provide airframe, component, engine & landing gear maintenance support for (ILFC) (ILF)-owned 737's, 767's, A320 family airplanes, A330's & A340's, plus (CFM56-5A/-5B) engines used on (ILF) A320 family airplanes.
Vancouver - Punta Cana (Fris). In January 2005, Monteal - San Juan (Suns).
2 747-433's (24998, C-GAGL; 25074, C-GAGM), returned to (GECAS) (GEF). 767-233ER (22526), to Teebah Airlines (TEE), wet-leased to Iraqi Airways (IRQ).
January 2005: 4th Quarter (ACN) Parent, (ACE) Aviation Holdings = + C$15 Million/+$12.4 Million (-C$768 Million). Last 9 months = - C$895 Million.
Another -800 employees will be laid off in 2005.
In June 2005, Toronto - Beijing (4/week).
Selected Lufthansa (DLH) Systems NetLine Plan solution for network planning, including the NetLine Flexible Costs module.
In 2005, will add 2 767-200's, 3 767-300's, & 1 A340 for +4.3% (ASM) capacity increase.
March 2005: World Airways (WLD) MD-11F wet-leased to Air Canada (ACN) Cargo for May 2005, Vancouver - Shanghai (3/week). Toronto - Calgary - Vancouver (737F, 4/week).
Air Canada Technical Services will conduct work on Delta (DAL) 757's & 767's.
April 2005: Air Canada (ACN), Canada's flagship carrier, flies to over >150 destinations worldwide, together with holiday packages to 90 destinations.
(IATA) Code: AC - 014. (ICAO) Code: ACN (Callsign - AIR CANADA).
Parent organiztion/shareholders: (ACE) Aviation Holdings.
Owns: Air Canada Jazz (100%); Air Canada Jetz (100%); & Tango (100%).
Alliances: Star Alliance; Air Creebec; Air Georgian; Air Jamaica (JAM); Air Labrador; Air Wisconsin; Calm Air; Canadian North (CNN); Central Mountain Air; El Al (ELA); (EVA) Air; Pacific Coastal Airlines; Royal Jordanian Airlines (RJA); & SkyWest Airlines.
Main Base: Montreal Trudeau airport (YUL).
Hubs: Toronto Pearson International (YYZ); & Vancouver International (YVR).
Domestic, scheduled destinations: Calgary; Charlottetown PE; Edmonton; Fredericton; Halifax; Kelowna; London; Moncton; Montreal; Ottawa; Quebec; Regina; Saskatoon; St John; St Johns; Thunder Bay; Toronto; Vancouver; Victoria; & Winnipeg.
International, scheduled destinations: Antigua; Aruba; Barbados; Beijing; Bermuda; Bogota; Boston; Buenos Aires; Cancun; Caracas; Cayo Coco; Cayo Largo del Sur; Charlotte; Chicago; Cozumel; Delhi; Denver; Fort Lauderdale; Fort Myers; Frankfurt; Grand Cayman Island; Havana; Holguin; Hong Kong; Honolulu; Houston; Ixtapa/Zihuatanejo; Kahului; Kansas City; Kingston; Kona; La Romana; Las Vegas; Lima; London; Los Angeles; Mexico City; Miami; Minneapolis/St Paul; Montego Bay; Munich; Nashville; Nassau; New York; Orlando; Osaka; Paris; Philadelphia; Phoenix; Pointe-a-Pitre; Port au Prince; Port of Spain; Providenciales; Puerto Plata; Puerto Vallarta; Punta Cana; Raleigh/Durham; San Francisco; San Jose; San Juan; Santiago; Sao Paulo; Seattle; Seoul; Shanghai; St Louis; St Lucia; St Maarten; Sydney; Tampa; Tel Aviv; Tokyo; Varadero; Washington; & West Palm Beach.
$6 Billion, 14/46 orders (2010-02) 787-8/-9's and 16/18 orders 777-200LR's/-300ER's (GE90-115), +2 777-200F's.
These new airplanes will replace the existing fleet of 65 767's, A330's & A340's, including 2 A340-500's in service and 3 A340-600's on order.
Robert Milton, Chairman, stated "Our analysis of these airplanes pointed to overwhelmingly attractive economics. We have estimated the fuel burn rate and maintenance cost savings alone on the 787 to be approximately -30% versus the 767's they will replace. The 777's & 787's are uniquely suited for Air Canada's (ACN) current route structure and growth plans, which include long-range, nonstop services for both passengers and cargo with an increasing emphasis on markets in Latin America and China."
Plans include in 2006, daily nonstop services, Toronto to Beijing, and Shanghai, plus to Guangzhou in 2007.
1st Q = -C$77 Million/-$60.5 Million (-C$304 Million): +5% (RPM) traffic; +4.8 LF; +23% fuel expenses.
A321-211 (674, C-GKOH) returned to (GATX) (GAX), leased to Czech Airlines (CSA).
June 2005: World Airways (WLD) $101 Million multiyear 2 MD-11F's (48523, N381WA), ex-Korean Air (KAL), wet-lease contract for Air Canada (ACN) through August 7 between Toronto, China and other points in North America.
After failing to agree to a new pilot (FC)'s contract, Air Canada (ACN) cancels $6 order for 777's & 787's.
737-275 (21712) donated to Alberta Aviation Museum, Edmonton. 2 767-3YOER's (487-26206, C-GHPF; 26207, N227MT), ex-Kenya Airways (KEN), (GEF) leased. A321-211 (675, C-GKOI) returned to (GATX) (GAX), leased to Royal Jordanian Airlines (RJA). A321-211 (684, C-GKOJ) returned to GATX (GAX), leased to Czech Airlines (CSA). A340-312 (048, C-FDRO), ex-Air Jamaica (JAM), (ILF) leased. CL-600-2D15 (15037, C-FBJZ), delivery for Jazz Air operations.
July 2005: In December 2005, new daily nonstops, Vancouver - San Diego, Abbotsford - Toronto & - Calgary, Calgary - Orlando, & - Newark. Following other boosts in service, (ACN) will operate a total of 1,300 flights/day on 194 nonstop routes to 60 destinations in Canada and 50 destinations in the USA.
Swiss International Airlines (CSR) and Air Canada (ACN) plan to codeshare on Zurich - Toronto. (ACN) is also considering Toronto - Delhi, via Zurich to take advantage of (CSR)'s membership in the Star alliance, and the introduction of Zurich into the Lufthansa (DLH) hub network, after (DLH) completes its acquisition of (CSR).
August 2005: 31,991 employees (-3.4%).
(ACE) Aviation Holdings assigned Brian Dunne, (CFO) & Executive VP, ex-Aer Lingus (ARL), replaces Bob Peterson. Greg Cote, Senior VP Corporate Finance & Strategy.
September 2005: Star (SAL) Alliance chose UK-based Zero Octa as the preferred vendor for revenue recovery and protection services. Ten member carriers: - Air Canada (ACN), Air New Zealand (ANZ), Asiana Airlines (AAR), bmi (BMA), (LOT) Polish Airlines, Singapore Airlines (SIA), Spanair (SPP), United Airlines (UAL), US Airways (USA) and Varig (VAR) - - will be using Zero Octa.
Swiss (CSR) will begin new codeshare services from Zurich to Toronto and Delhi with Air Canada (ACN) from October 30.
Air Canada (ACN) said it reached agreement with the Air Canada Pilots Association (ACPA) "on a process to resolve all issues relating" to the airline's acquisition of 777 and 787 airplanes. (ACN) cancelled its order for up to 36 777s and 14 787s last spring after its pilots' union rejected a tentative agreement covering pay and work rules for the new fleets.
In Friday's statement, the airline said it had reached agreement with (ACPA) on a binding arbitration process to settle the disagreement. "Through this process, the airline will obtain certainty on pilot costs and other issues relating to the new airplanes [and] subject to a satisfactory outcome, (ACN) would then re-engage Boeing to conclude an agreement on the order."
The order fell apart after original (ACN) pilots vetoed it to protest their dissatisfaction with results of the integration of the (ACN) and Canadian Airlines (CDI) seniority lists following (ACN)'s purchase of Canadian (CDI) in 2000. On Friday, (ACN) said that "subject to the results being approved by the Canada Industrial Relations Board, a mediation process will take place to review the current pilot (FC) issue resulting from the merger" of the carriers.
October 2005: Former Canadian Airlines (CDI) pilots (FC) yesterday refused a request by Air Canada (ACN) and the Air Canada Pilots Association to participate in a new round of mediated talks over the integration of Canadian (CDI) and Air Canada (ACN) pilot (FC) seniority lists following (ACN)'s purchase of Canadian (CDI) five years ago. The rejection does not threaten Air Canada (ACN)'s potential order for up to 96 777s and 787s, which is subject to separate negotiations, the company said. In a statement, the Canadian pilot group said that "reopening the seniority issue is simply Air Canada (ACN) responding to what amounts to blackmail by its former Air Canada pilots. We trust the (CIRB) will unequivocally reject this appeal." The airplane order was placed last April subject to (ACN) reaching agreement with (ACPA) on pay and working conditions for the new fleets. The carrier canceled the order in June after a majority of original Air Canada (ACN) pilots, unhappy with the way in which the (ACN) and Canadian (CDI) crew lists were combined, voted down the tentative agreement. Last month, (ACN) and (ACPA) agreed "on a [binding arbitration] process to resolve all issues relating" to the airline's acquisition of 777 and 787 airplanes and "subject to a satisfactory outcome, Air Canada (ACN) would then re-engage Boeing to conclude an agreement on the order." As part of the deal, (ACN) said it would support an appeal to the Canadian Industrial Relations Board to review the integration. Yesterday, (ACN) called the decision by the Canadian (CDI) group regrettable, but added that "the 777/787 issue is a separate issue and a process for its resolution has already been determined. One is not tied to the other."
(ACN) has begun freighter service between Toronto and Anchorage with flights continuing to Shanghai. Canada is Alaska's 3rd-largest international trading partner, with the 2-way flow of trade reaching $531 million in 2004.
767-375ER (24087, C-GHOZ), ex-Varig (VAR), (CIT) Group (TCI) leased. 2 E170's (00101, C-FEKD; 00102, C-FEKH), deliveries.
November 2005: "Crown Rent Policy Madness," a headline on a statement released last week by (IATA), was emblematic of the vitriol directed toward the Canadian government and the Greater Toronto Airports Authority (GTAA) following (GTAA)'s proposal to increase landing fees +6.9% and terminal fees +8.9% for 2006, making Pearson International Airport the most expensive in the world, according to (IATA). (GTAA) claims it needs to raise fees owing to Canada's policy of charging airports rent on their land grants. The authority said in a statement that it pays two-thirds of the country's airport rent despite handling just one-third of the traffic and owes payback of a deferral it was given to mitigate losses caused by the 2003 (SARS) outbreak. It warned that it may have to pay Transport Canada as much as C$151.5 million/$127.1 million for ground rent in 2006, compared to the C$133 million paid in 2005.
(IATA) Director General & (CEO), Giovanni Bisignani, who has clashed with (GTAA) in the past, agreed that the rent policy "is the single largest obstacle to lowering airline fees at Pearson [and] should have died when the government recouped its airport investments." However, he also called on the authority to "do a better job of managing its costs," declaring, "We are paying a heavy price at Toronto for the excessive airport redevelopment that the government allowed to proceed unchecked."
The government agreed to cut future rents at Pearson -6% by 2010, compared to -63% at Vancouver, -60% at Calgary and -20% at Montreal. Additionally, it has not assumed any of the debt associated with (GTAA)'s C$4 billion redevelopment investment.
The USA Air Transport Association (ATA) suggested that USA airlines may avoid Toronto in the future owing to the high fees, serving southern Ontario "through nearby USA cities such as Buffalo, Detroit, Chicago and even New York."
Air Canada (ACN), which sued (GTAA) over its "excessive" redevelopment program, urged the government "to revisit the rationale for charging airport ground rents and to amend the governance policies for Airport Authorities to provide airlines and other users with meaningful input in airport development and operations."
USA and Canada reached a full open skies agreement "that removes all economic restrictions on air services to, from and beyond the other's territory by the airlines of both countries." The agreement was reached after three days of talks in Washington and builds on the liberalized accord reached in 1995 that dramatically boosted air services between the countries but "provided virtually no rights for airlines to fly beyond the other country and severely limited express cargo services," according to the USA Deptartment of Transportation (DOT). Last year, nearly 19 million passengers flew nonstop between the countries on 372,000 flights, (DOT) said. The agreement is expected to take effect next September.
All Nippon Airways (ANA) will move into the new South Wing of Narita Airport Terminal 1 in June 2006, along with fellow Star (sal) Alliance members Air Canada (ACN), Asiana Airlines (AAR), Austrian Airlines (AUL), Lufthansa (DLH), Scandinavian Airlines (SAS), Singapore Airlines (SIA), Thai International (TII), United Airlines (UAL), and Varig (VAR).
Air Canada (ACN) will introduce daily direct service between Montreal and Mexico City beginning June 17 aboard 120-seat A319s.
(ACE) Aviation Holdings, parent of Air Canada (ACN), reported third-quarter net income of +C$270 million/+$229.6 million compared to an -C$81 million loss in the year-ago period. "Our ongoing efforts to reposition this company are clearly paying off," (ACE) Chairman & (CEO), Robert Milton said in a conference call. "These results for the third quarter, traditionally our best, are the strongest results reported by any North American carrier for the period and reflect our ability to now achieve North American industry-leading levels of profitability versus low-cost carriers as well as legacy carriers."
(ACE)'s third-quarter 2004 results included C$313 million in pre-tax restructuring and reorganization costs. The company emerged from bankruptcy protection on September 30, 2004.
Operating income in the 2005 quarter climbed +31.7% to +C$320 million from +C$243 million last year. Revenues were up +13.5% to C$2.83 billion as the carrier raised fares and boosted load factor 2 points to a company record +82.4%. (RPM) (passenger traffic) growth outpaced (ASM) (capacity) growth +9% to +6% and passenger yield rose +7% to C17.6 cents. Operating (RASM) was C16.7 cents, also a hike of +7%.
A +11.5% increase in operating expenses to C$2.51 billion was driven almost entirely by a +46.1% surge in fuel costs. Unit cost was reduced -3% excluding fuel, while (CASM) including fuel rose just +5% to 14.8 cents.
(ACE)'s net income through the 1st 9 months was +C$361 million compared to an -C$895 million loss at the same point last year. Operating income was up +305.8% to +C$487 million, operating revenue climbed +9.2% to C$7.47 billion and expenses rose just +3.9% to C$6.98 billion. Reorganization and restructuring items cost the company C$871 million last year.
Air Canada (ACN) parent (ACE) Aviation Holding is preparing to sell a share of its Regional subsidiary Jazz through an initial public offering (IPO) of units of Jazz Air Income Fund, which will hold a minority interest in the carrier with (ACE) retaining majority control. (CIBC) World Markets and (RBC) Capital Markets are acting as joint bookrunners for the (IPO), which follows a favorable ruling by the Ottawa government with regard to tax treatment of income trusts.
Proceeds from the sale will be used by (ACE) for "general corporate purposes." The company did not provide specific financial terms of the transaction ahead of a final prospectus filing expected in December, but the Globe and Mail said ACE is targeting the sale of 15% of Jazz, raising C$150 million/$128 million.
The Halifax-based carrier operates about 684 flights per day with a fleet of 119 airplanes. It is an outgrowth of the 2001 merger of AirBC, Air Nova, Air Ontario and Canadian Regional.
Air Canada (ACN) will introduce new seats across its entire fleet including installing lie-flat seatbeds in its international Executive First premium cabins beginning next spring. Seats, designed and manufactured by Contour Premium Aircraft Seating, will offer 6 ft 3 inches of length in bed configuration and provide up to 31 inches of width at the shoulders. They will be separated by 43-inches-high privacy screens. Cabins will feature individual In-Flight Entertainment (IFE) units, in-seat power supplies and multiple storage areas. (ACN) also is introducing new seats designed and manufactured by B/E Aerospace in the Executive Class cabins of its North American fleet comprising A319, A320, A321 and 767-200 airplanes. Seats will offer 38 inches pitch. Cabins will outfitted with in-seat video and audio and in-seat power for portable electronic devices. (ACN) intends to roll out new seats for its Hospitality Class (economy) cabins made by (B/E) Aerospace and (C&D) Aerospace. Every seat will include individual seatback (IFE) units.
Following resolution of its disagreement with the Air Canada Pilots Association (ACPA) through binding arbitration, (ACN) also revived its order for 32 777s and 787s and expects the 1st 777 deliveries in January. It will begin taking delivery of 45 E190s this month.
(ACE) Aviation Holdings, parent of Air Canada (ACN), concluded its previously announced order with Boeing covering 18 777s, plus purchase rights for 18 more, in a yet-to-be-determined mix of 777-300ERs, 777-200LRs and 777Fs with deliveries beginning next March. The deal also includes firm orders for 14 787 Dreamliners plus options and purchase rights for an additional 46 with deliveries starting in 2010. The order originally was placed in April but was suspended after Air Canada (ACN) was unable to reach a satisfactory agreement with its pilots union on pay rates and work rules for the new fleet. An arbiter settled the matter to (ACN)'s satisfaction earlier this month. (GE) will supply engines for the 777s and 787s and valued the firm engine orders at $1.2 billion.
2 E170-200SU's (00103, C-FEKI; 00109, C-FEKJ), deliveries.
December 2005: Air Canada (ACN) Jazz will launch daily service between Los Angeles and Edmonton May 1 aboard CRJ705s. (ACN) launched service from San Diego to Vancouver. Daily nonstops are being flown by 2-class, 75-seat CRJ705s operated by Air Canada (ACN) Jazz. Air Canada (ACN) inaugurated nonstop seasonal winter weekend service from Calgary to Orlando. The airline operates a Saturday & Sunday flight using its A319s. Air Canada (ACN) will operate daily Denver - Montreal service from June 16 aboard Embraer E190s.
Air Canada (ACN) said it has cut its base commission to travel agents from 9% to 7%.
Embraer was granted type certification for its 100-seat E190 from Transport Canada Civil Aviation. The certification allowed Air Canada (ACN) to take delivery of the 1st of 45 Embraer E190s, which will be configured for 2 classes. (ACN) placed its initial order in 2003 and subsequently extended it to include 15 Embraer E175s, 13 of which are currently operating in the carrier's fleet. "Having these 2 E-Jet types, the 73-seat Embraer E175 and the 93-seat E190, will allow Air Canada (ACN) to significantly increase its operational flexibility, tailoring airplane size to market demand without the typical training and logistical transition costs," Embraer (EMB) Executive VP Fleury Curado said.
A320-211 (305, C-FMES), returned to lessor. 1 E170-200SU (00110, C-FEKS), & 3 E190-100's (00010, C-GWEN; 00013, C-FFYJ; 00015, C-FFYM), deliveries.
January 2006: Air Canada (ACN) reported a +7.4% increase in passenger traffic during December to 3.4 billion (RPM)s against a +4.5% rise in capacity to 4.4 billion (ASM)s, sending load factor up 2.1 points to 77.3% LF. End-of-year figures included a +6.1% gain in (RPM)s to 44.18 billion, +2.6% growth in (ASM)s to 55.17 billion and a 2.6-point improvement in load factor to 80.1% LF.
Air Canada (ACN) will operate 3x-weekly Toronto - Shanghai service from June 16 aboard 286-seat A340-300s departing Toronto on Wed/Fri/Sun and Shanghai on Mon/Thu/Sat.
Air Canada (ACN) intends to challenge Qantas (QAN) between Los Angeles (LAX) and Sydney next year, operating 5th freedom services as part of a daily, Toronto - Sydney service that will commence during the 1st half of 2007 when its new 777-300ERs and 777-200LRs begin arriving. (ACN) said it will use authority contained in the recent open skies agreement between the USA and Canada and will apply to Canadian and Australian authorities for permission to operate the route.
Qantas (QAN) previously has lobbied the Australian government successfully to keep Singapore Airlines (SIA) from operating between Sydney and (LAX). The government is expected to announce whether (SIA) will receive clearance to fly Singapore - Sydney - Los Angeles as part of its international aviation reform package in March. Most analysts believe it will agree to a phased-in program of rights for the Singaporeans to provide access to the route, which accounts for up to 20% of Qantas (QAN)'s international profits.
Air Canada (ACN) flights will be timed to offer "convenient connection possibilities" from (LAX) to and from Montreal, Edmonton, Calgary and Vancouver as well as connections across the USA via Star Alliance partners United Airlines (UAL) and US Airways (USA)/(AMW). (ACN) already operates between the USA and Australia on its Vancouver - Honolulu - Sydney service using existing route authorities.
Separately, (ACN) lost its legal challenge to prevent its flight attendants from comparing their pay with that of pilots and mechanics. According to the Globe and Mail, the flight attendants hope to demonstrate that they are being discriminated against because of their gender. The Supreme Court of Canada, without ruling on the merits of their argument, said it is fair to compare the pay rates because all groups work at the same company. The case has dragged through the court system for 15 years, the newspaper said.
(IATA) announced the launch of its (IATA) Catering Quality Assurance (ICQA) program, which it called "the industry's first global food processing safety and quality assurance" initiative. The association will partner with Medina Quality Assurance Services, which will audit catering facilities in compliance with (ICQA) standards on a contractual basis for program participants. Medina will conduct 2 types of audits: Unannounced on-site Validation Audits and Web-based e-Audits, which are "customized questionnaires designed to identify deficiencies." An (ICQA) Council will be established to oversee the program, approve the audit schedule and update standards, guidelines and audit procedure. (IATA) said Air Canada (ACN), Aeroflot (ARO), Japan Airlines (JAL), (KLM) and Northwest Airlines (NWA) have confirmed their participation in (ICQA).
(ACE) Aviation Holdings, parent of Air Canada (ACN) and Jazz, moved forward with previously announced plans for a partial sale of its Regional airline subsidiary. Under an agreement between Jazz Air Income Fund and a group of underwriters, 23.5 million units of the fund will be sold at a price of $10 per unit, representing 19.1% of the airline. Based on the unit price, gross proceeds to (ACE) will total C$235 million before overallotments. The fund has granted the underwriters an option to purchase up to an additional 3.25 million shares that if fully exercised would raise the divestiture to 22%. The units are expected to provide a cash-on-cash yield of 8.75% annually based on the initial public offering (IPO) price. Jazz will distribute the net proceeds of the offering to (ACE) for general corporate purposes. (CIBC) World Markets and (RBC) Capital Markets are acting as joint bookrunners for the (IPO). In connection with the offering, a commitment letter has been entered into by Jazz with (RBC) and (CIBC) in respect of the establishment of C$150 million senior secured syndicated credit facilities. On closing of the offering, C$115 million is expected to be drawn under such facilities.
(ACE) Aviation Holdings named Chahram Bolouri, President & (CEO) of Air Canada (ACN) Technical Services.
2 E190-100's (00018, C-FFYT; 00019, C-), deliveries.
February 2006: Air Canada (ACN) mainline passenger traffic increased +2.7% in January to 3.5 billion (RPM)s. Capacity rose +2.2% over the year-ago month to 4.48 billion (ASM)s and load factor went up +0.4 point to 78.1% LF.
(ACE) Aviation Holdings, parent of Air Canada (ACN), announced it will lay off -600 management and salaried employees, representing -20% of the nonunion workforce, as it reported a 4th-quarter net loss of -C$103 million/-$89.7 million, largely attributed to a +C$146 million increase in fuel expense during the seasonally weak fall quarter although other costs rose as well.
(ACN) reported a slender profit of +C$15 million in the 2004 4th quarter owing to foreign exchange gains.
"The decision to reduce jobs is never easy," Chairman & (CEO) Robert Milton said. "However, it is necessary in this cost environment as we advance with the implementation of our business model." Most of the cuts will occur in the first half of 2006 at Air Canada (ACN), (ACN) Cargo, (ACN) Ground Handling Services and its Maintenance Repair & Overhaul (MRO) unit (ACN) Technical Services (ACTS).
For the full year, (ACN) posted a profit of +C$258 million compared with a net loss of C$880 million in 2004. The 2004 results are pro forma and comprise 3 months of (ACE) and 9 months of its predecessor, Air Canada (ACN). During a webcast with analysts, Milton called the 2005 financial performance "amongst the best in the North American [airline] industry," but nevertheless stressed, "There is no room for any complacency and we must continue to improve efficiencies throughout our business."
4th-quarter revenue rose +15% to +C$2.36 billion, driven by a +17% jump in passenger revenue to +C$1.97 billion, which was owing to both a +7% yield improvement and a +9% gain in passenger traffic (RPM)s. Riding a +34% hike in fuel costs, operating expenses surged +16% to C$2.4 billion and the company's operating loss widened to -C$35 million from -C$3 million the previous year.
After declining in the 1st 3 quarters of 2005, unit cost excluding fuel, rose +3.6% compared with the year-ago period. Higher airplane ownership and maintenance costs were significant factors in the (CASM) increase, (ACN) said. Ironically, (ACN) had to outsource some (MRO) work in the period at a higher cost because (ACTS) was full of 3rd-party work from Delta Air Lines (DAL) and US Airways (AMW)/(USA).
For the full year, operating revenues lifted +10.5% to +C$9.83 billion while operating expenses climbed +6.8% to C$9.38 billion, resulting in a better-than-threefold rise in operating profit to +C$452 million from +C$117 million in 2004.
Although (ACN) did not hit its profitability targets because of the impact of higher fuel prices, Milton said the board approved 2005 employee profit-sharing payments "to recognize the efforts of our employees."
Air Canada (ACN) will install the Boeing Class 3 Electronic Flight Bag (EFB) on the 777s and 787s it ordered last year, becoming the 1st North American carrier to operate a Class 3 (EFB). (ACN) will take delivery of the 1st of 18 777s in 2007 and the 1st of 14 Dreamliners the following year. Boeing is making the (EFB) standard on the 787.
Air Canada (ACN) Jazz and the Toronto Port Authority (TPA) exchanged broadsides over the former's eviction from Toronto City Centre Airport. (ACN) Jazz, which operates five weekday roundtrips to Ottawa and is the airport's only scheduled commercial carrier, said it would be suspending service there during March due to "continuing uncertainty" and the "surprising unwillingness of the [TPA] to assist its longest-standing commercial airline in finding alternate facilities at the Island Airport." The carrier said it was served a notice of termination on January 31 and was forced to issue furlough notices to its Toronto City Center-based employees.
The (TPA) Port Authority responded with "disappointment," saying (ACN) Jazz has been on a month-to-month lease since 2004 and did not contact (TPA) until February 3 about renting space. (TPA) claimed discussions ensued and (ACN) Jazz was notified February 9 that "we don't control enough space to support a passenger terminal facility." It urged (ACN) to negotiate with other airport tenants.
Earlier this month, (REGCO) Holdings, which also owns Toronto City Centre operator City Centre Aviation, announced the launch of Porter Airlines, a new Regional carrier at the airport that will operate 10 70-seat Bombardier Dash 8-Q400 turboprops.
The Australian government, as expected, rejected Singapore Airlines (SIA)'s plans to offer service on the transpacific route to the USA, bowing to a concerted campaign by Qantas (QAN) to limit competition on its most profitable route and ruling that there would be minimal benefits to Australia. The route accounts for 20% of Qantas (QAN)'s profits, according to the "Sydney Morning Herald." It wasn't all good news for Qantas (QAN), however, as the government blocked its effort to lift foreign ownership beyond 49%. In addition, the way now is clear for Virgin Blue (VOZ) to establish long-haul services to the USA in competition with Qantas (QAN), United Airlines (UAL) and Air Canada (ACN). The latter enters the market next year.
"Liberalization of market access is essential and must continue. However, this requires equal opportunity for Australian carriers, which is not now available in many instances," Qantas (QAN) (CEO) Geoff Dixon said.
Anticipating the decision, (SIA) issued a statement saying that "consumers will continue to pay high fares and suffer a lack of service enhancements that competition would bring" by the government's opting to "continue an outdated legacy of protecting Qantas (QAN)." (SIA)'s Australian head Paul Tran insisted Australians are "getting a raw deal on the Pacific route."
(SIA) had argued that its entry would generate A$114 million/$84.4 million in additional tourism revenue by bringing +48,000 extra USA visitors to Australia. However, the emergence of Virgin Blue (VOZ) and Air Canada (ACN) swayed the debate in Qantas (QAN)'s favor. The government had assured Singapore in 2003 that talks would resume on an open skies pact between the countries once stability returned to the international aviation industry. It suggested a regional alliance between (SIA), a Star Alliance member, and Oneworld (ONW) Alliance's Qantas (QAN) but (QAN) Chairman Margaret Jackson said the Australian carrier was not interested.
Regarding foreign ownership, Dixon said raising the limit would have helped the airline lower its capital costs "as well as provided parity with other Australian international carriers, allowing us to operate competitively while not in any way endangering our role as a major Australian company."
Air Canada (ACN) intends to challenge Qantas (QAN) between Los Angeles and Sydney next year, operating fifth freedom services as part of a daily Toronto - Sydney service that will commence during the first half of 2007 when its new 777-300ERs and 777-200LRs begin arriving. (ACN) said it will use authority contained in the recent open skies agreement between the USA and Canada and will apply to Canadian and Australian authorities for permission to operate the route. (ACN) flights will be timed to offer "convenient connection possibilities" from (LAX) to and from Montreal, Edmonton, Calgary and Vancouver as well as connections across the USA via Star Alliance partners United Airlines (UAL) and US Airways (AMW)/(USA). (ACN) already operates between the USA and Australia on its Vancouver - Honolulu - Sydney service using existing route authorities.
Air Canada (ACN) will inaugurate nonstop service from Fort McMurray to Toronto with continuing service to St John's on April 8th. Initially the flight will operate on Saturdays only increasing to daily service on June 17th. An Embraer E190 will be used on this new route.
March 2006: Air Canada (ACN) launched daily New York (JFK) - Calgary service using a 93-seat, Embraer E190. Air Canada (ACN) inaugurated nonstop service from Edmonton to Montreal. The airline now operates a daily service on this route using an Embraer E190. Air Canada (ACN) will launch daily Toronto - Salt Lake City service from June 2 aboard Air Canada (ACN) Jazz CRJ705s and daily mainline flights from Toronto to San Diego beginning July 1 aboard A319s. Air Canada (ACN) Jazz will begin daily nonstop service to Yellowknife from Edmonton on July 3 and from Calgary on July 4. It will launch daily nonstop service August 1 on the following new routes: Edmonton - Victoria, Calgary - Comox, Edmonton - Kelowna and Winnipeg - London, Ontario.
(ACN) Jazz is poised to expand its fleet with the addition of more Canadair regional jets. The (ACN) fleet will grow to 135 airplanes by the end of July, up from the current 123 airplanes, and another 45 regional jets could eventually be added.
A319-112 (1718, C-GJVS), returned to (GECAS) (GEF). E190-100 (00022, C-FGLW), delivery. CRJ-200 (7500, C-GJZA), (GEF) leased, (ACN) Jazz operations.
April 2006: Air Canada (ACN) flew 3.75 billion (RPM)s passenger traffic in March, a +3.8% increase from the year-ago month. Capacity rose +1.7% to 4.61 billion (ASM)s and load factor went up +1.6 points to 81.4% LF. Air Canada (ACN) Jazz traffic grew +88.8% to 304 million (RPM)s against a +84.5% hike in (ASM)s to 417 million, raising load factor +1.7 points to 72.9% LF.
Air Canada (ACN) is boosting weekday service from Calgary to 18 daily flights to Vancouver and 19 daily flights to Edmonton from July 3. Flights are aboard Embraer E175s and E190s.
Air Canada (ACN) parent (ACE) Aviation Holdings is selling 35% of its holding in US Airways Group (AMW)/(USA) to (PAR) Investment Partners LP. (ACE) invested $75 million to acquire 5 million shares representing 7% in the reorganized US Airways (AMW)/(USA) when it emerged from bankruptcy last September. (ACE) said net proceeds from the sale of 1.75 million shares will amount to $67 million, or 90% of its original investment, and it still holds 3.25 million shares worth nearly $123 million at a recent midday price of $37.83 per share. The transaction is expected to close April 13, and "in accordance with the terms of the original Stockholders Agreement entered into between (ACE) and US Airways (AMW)/(USA), (ACE) Chairman President & (CEO) Robert Milton will resign" from the US Airways (AMW)/(USA) board in the near future.
Separately, (ACN) announced a fare hike to compensate for rising fuel prices. One-way fares on domestic flights and services to the USA have been raised C$6 - C$10/$5 - $8, based on distance.
Thales (THL) said its TopSeries i-4500 all-digital In-Flight Entertainment (IFE) system was certified by Embraer for Air Canada (ACN)'s E175s and E190s.
Air Canada (ACN) said it welcomed "the successful conclusion of an Open Skies Agreement for Canada and the UK." (ACN) said the deal will allow it to introduce "more flexible simplified pricing" and enable it to expand its popular multitrip flight passes. London Heathrow is the carrier's most important international gateway.
Air Canada (ACN) Technical Services (ACTS) will provide component Maintenance Repair & Overhaul (MRO) and support for JetBlue (JBL)'s A320 fleet under a 10-year, $200 million contract. It is "the largest component maintenance contract for (ACTS)," according to the company, and represents two-thirds of the total component maintenance demand for the airplanes. Work will be performed at the (ACTS) Montreal components facility.
Air Canada (ACN) is accelerating introduction of the 777-300ER with a lease of 1 airplane from (ILFC) (ILF) to be delivered in May 2007. (ACN) will take delivery of 8 777-300ERs next year. The airline announced its order for up to 36 777s and 60 787s in last May, but delays caused by a dispute with pilots cost it some 777 delivery positions.
The Star (SAL) Alliance is working on collective specifications for the 787, Air New Zealand (ANZ) (CEO) Rob Fyfe said during the group's meeting in Johannesburg earlier this week. The alliance has a working group including member airlines Lufthansa (DLH), All Nippon Airways (ANA), Singapore Airlines (SIA), (ANZ), Air Canada (ACN) and (LOT) Polish Airlines negotiating with Boeing on a wide spectrum of specifications ranging from cockpit configuration through galley configuration and seat pitch. Individual carriers would buy the airplanes, "but a far-reaching commonality in the specifications facilitates the seasonal airplane swapping between members," Fyfe noted, adding there is also a cost benefit. "The more you have commonality in your requirements, the more that Boeing will look to feed those issues into the base design, rather than having to do them as add-on incremental." Economies of scale are an additional advantage.
2 A319-112 (1688, C-GJTC; 1718, C-GJVS), (GEF) leased.
May 2006: Air Canada (ACN) reported a +6.4% rise in consolidated passenger traffic in April to 3.77 billion (RPM)s. Capacity increased +4.7% to 4.63 billion (ASM)s and load factor gained +1.2 points to 81.2% LF. Domestic (RPM)s grew +3.1% to 1.16 billion, capacity lifted +6.9% to 1.48 billion (ASM)s and load factor dropped -2.9 points to 78% LF. International (RPM)s rose +4.4% to 1.91 billion against a +1.5% increase in capacity to 2.27 billion (ASM)s, boosting load factor +2.3 points to 84.1% LF.
Largely driven by proceeds from the partial sale of Regional subsidiary Jazz, Air Canada (ACN) parent, (ACE) Aviation Holdings posted 1st-quarter net income of +C$118 million/+$107.3 million, a figure that represented a vast improvement over a -C$77 million loss in the year-ago quarter and overshadowed a -C$29 million operating loss.
"During the quarter, we made substantial progress in creating shareholder value through the successful monetization of our Regional carrier Jazz," Chairman, President & (CEO) Robert Milton said.
First-quarter revenues rose +14.1% to C$2.48 billion, driven by a +16% increase in passenger revenues to C$2.02 billion, while operating expenses climbed +16.4% to C$2.55 billion. Excluding a special labor charge of C$33 billion, (ACE)'s operating loss was nearly 3x- greater than the -C$10 million reported in the year-ago quarter.
1st-quarter yield was up +9% to C17.9 cents on a +6% increase in (RPM)s to 11.24 billion. Capacity grew +5% and load factor rose +0.7 point to 78.7% LF, pushing (RASM) ahead +10% to C14.1 cents. Fuel costs jumped +37.1% to C$569 million. "As expected, spiraling fuel costs had a major negative impact on the airline's cost performance and we anticipate this impact to continue throughout 2006," Milton said.
Jazz posted a +49.5% gain in revenues to C$320 million. The Regional's operating expenses jumped +54.9% to C$285 million, producing operating income of +C$35 million, up +16.7% from +C$30 million in the year-ago quarter. (ACE) netted more than +C$200 million by selling a 20.3% stake in Jazz in a 1st-quarter Initial Public Offering (IPO).
"While the fuel cost environment remains a concern. I am satisfied that we are well positioned to deliver a strong performance for the full year relative to the industry," Milton said.
There is no resolution to the controversy surrounding Tango bookings, however. President, Montie Brewer said in a webcast, that (ACN) had no choice, but to remove its low-fare product earlier this year from all (CRS)'s/Global Distribution System (GDS)s, which he said failed to find ways to distribute bookings for the unconventional offering that eschews seat assignments. "We've been hoping the (GDS)s would find ways to distribute this innovative product. They were basically causing us to lose revenue on [Tango] operations and we waited for three years for the (GDS's to solve the problem. We just can't afford to not have this product distributed correctly," Brewer said.
The latest skirmish in the distribution wars turns the spotlight on whether traditional (GDS)'s can accommodate new types of airline product differentiation.
Air Canada (ACN) withdrew its Tango fare for travel within Canada and between Canada and Florida from the (GDS)s and from its own dedicated travel agency Web site, aircanada.com/agents.
In response, Sabre began "de-preferencing" Air Canada (ACN)'s displays in its (GDS) to ensure that flights by carriers that provide full content are displayed before Air Canada (ACN) flights. Galileo said it would no longer return Air Canada (ACN) results in low-fare shopping inquiries unless they are specifically requested.
The moves by both (GDS)s apply outside of Canada and the (EU).
Tango fares, Air Canada (ACN)'s lowest levels, are "stripped down" fares; advance seat selection for Tango purchasers costs an additional C$15, and Aeroplan members earn 50% of the flown miles.
In addition to the "sell up" option for advance seat selection, Air Canada (ACN) recently introduced a "sell down" option: Purchasers of Tango fares can save another C$10 each way if they agree not to make any changes to their booked itineraries and to fly without checked baggage, within the normal carry-on bag allowance.
In order to obtain the discount, customers must click on the GO Discount Tango fare option when making an online booking.
Passengers also can "mix and match" options on the same fare, paying C$15 for seat selection and saving C$10 for not checking bags.
The Internet environment has taken the airline industry in new directions, Marc Rosenberg, the carrier's Vice President of Sales and Product Distribution, said, but traditional (GDS) technology does not support Air Canada (ACN)'s simplified fare products.
"Unfortunately, they just can't handle it," he said, adding that Air Canada (ACN) would have no problem making the fares available through the (GDS)'s if they could display the various options.
He said Air Canada (ACN) competes head-on with low-cost carriers on its home turf. A travel agent looking at fares in a (GDS) will see only that both Air Canada (ACN) and a Low Cost Carrier (LCC) are offering a $100 fare, but the agent won't see Air Canada (ACN)'s "unbundled" options.
"That puts us at a tremendous disadvantage," Rosenberg said.
Air Canada (ACN) began the unbundling of its fares in May 2003, about a month after it entered bankruptcy protection, with the breaking out of advance seat selection.
"As we went through the dark hours as a legacy carrier morphing ourselves into something new, we pushed the envelope and tested the market and appetite for new and different things," Rosenberg said.
Rosenberg said the carrier has had "ongoing discussions" with various vendors about meeting airlines' changing needs. The public has embraced the unbundled fare concept enthusiastically, and "travel agents should be able to sell these fares," Rosenberg said.
He said Air Canada (ACN) removed Tango from its agent site due to contractual obligations to vendors.
In response to inquiries, Sabre said it was disappointed that Air Canada (ACN) made a "drastic" move that makes it "more costly and more difficult for agencies to sell Air Canada (ACN), negatively impacting agencies and consumers. In effect, Air Canada (ACN) has implemented a significant fare increase through the agency channel."
It said it was "working with Air Canada (ACN) to resolve this situation and ensure our customers have access to the Tango fares through the Sabre system. We have heard from the travel agencies how unhappy they are about this surprise move by Air Canada (ACN) and have been told that many of them are contacting Air Canada (ACN) to reconsider, or are considering moving to different carriers."
Galileo said it is "frustrated and severely disappointed that with virtually no advance notice, Air Canada (ACN) has taken the severe action of removing Tango fares from all the (GDS) systems, including the Apollo system, and is no longer permitting the pricing or ticketing of Tango fares. We stand behind our customers and their need to have access to full content in a cost-effective manner."
Galileo said if it is unable to resolve the flap amicably, "we would pursue whatever means we need to protect the interests of our customers, including legal action."
Air Canada (ACN) said Tango is primarily a domestic product. In the transborder market, it is available year-round only on routes to Florida; in other USA markets, Tango fares are offered for limited-time promotions.
Bruce Bishins, President & (CEO), (CSTAR), a Canadian travel agency association, called Air Canada (ACN)'s handling of the current dispute "deplorable," but he also had plenty of blame to dish out for the (GDS)'s. "There is no way that Air Canada (ACN) will return its low fare inventory to the high costs and limiting technology which most (GDS)'s continue to embrace," he said. (GDS) companies' response to new functionality has been "lackluster," he said.
Bishins also is President of Genesis, a travel agency-owned and managed distribution system.
Kevin Mitchell, Chairman of the Business Travel Coalition in the USA, said opposition to Air Canada (ACN)'s move "is becoming so strong and diverse that the airline will realize the harm its policy is causing and reverse course."
Mitchell dismissed Air Canada (ACN)'s contention that technology was at the heart of the dispute. "Contrary to Air Canada (ACN)'s spin, there are no technological limitations involved in loading these fares into (GDS)s; the only technological problems have come from Air Canada (ACN) deliberately throwing sand in the gears of managed travel programs through this unfortunate and unwise move."
The Association of Canadian Travel Agencies, the Canadian Corporate Travel Association and the American Society of Travel Agents also called on Air Canada (ACN) to restore Tango fares to the (GDS)s, saying the fares represent roughly 20% of tickets used by Canadians.
"Unbundling" has been slow to catch on in the USA. A notable exception is Northwest Airlines (NWA), which a few months ago began offering exit row and far-forward aisle seats in coach for an additional $15.
The carrier offers the seats when passengers are checking in online at nwa.com. (GDS)'s cannot handle the transaction at this juncture.
Air Canada (ACN) will discontinue nonstop service from St Johns Newfoundland to London Heathrow. The airline currently operates a daily 767 flight from Halifax to London via St Johns, but announced it was going to bypass this stopover in the near future. Air Canada (ACN) Jazz launched daily flights between Edmonton and Los Angeles with CRJ705s.
Air Canada (ACN) Technical Services (ACTS) signed a $2.8 million Maintenance Repair & Overhaul (MRO) agreement with (S7) Airlines (SBR) covering 10 newly leased A319s. (ACTS) will perform "C1" and "C4" airframe maintenance checks as well as "major" required and requested modifications prior to the airplanes' entry into service. Work will be performed in Montreal and Winnipeg and will be completed by the end of August.
WestJet (WJI) and Air Canada (ACN) settled their contentious dispute over alleged corporate spying and unauthorized data collection by WestJet (WJI) executives, with the Calgary-based Low Cost Carrier (LCC) agreeing to pay C$15.5 million/$14 million (C$5.5 million covering (ACN)'s legal costs in the matter and C$10 million to charity) and Chairman & (CEO) Clive Beddoe apologizing to his primary rival for "misconduct. "Air Canada (ACN) sued WestJet (WJI) for C$220 million in 2004, alleging that carrier officials illegally entered (ACN)'s reservations system to gather critical data. In a joint statement, the airlines detailed "unethical and unacceptable" activities "undertaken with the knowledge and direction of the highest management levels of WestJet (WJI)."
The statement confirms that in 2003 and 2004, WestJet (WJI) executives "engaged in an extensive practice of covertly accessing a password-protected proprietary employee Web site maintained by Air Canada (ACN) to download detailed and commercially sensitive information without authorization or consent from Air Canada (ACN). WestJet (WJI) sincerely regrets having engaged in this practice and unreservedly apologizes to Air Canada (ACN) and (ACN) Chairman, President & (CEO) Mr Robert Milton."
(ACN) said it has withdrawn its claims against its rival and "all legal proceedings between the parties have been terminated." It alleged in court filings, that an employee who moved from (ACN) to WestJet (WJI) used his old passwords to enable WestJet (WJI) executives to access (ACN)'s employee website more than 240,000 times. WestJet (WJI) co-Founder and VP, Strategic Planning, Mark Hill resigned in July 2004 as the controversy heightened. (ACN) has maintained throughout the dispute, that Beddoe was aware of the hacking.
The two airlines are fierce competitors in Canada's domestic market, with the flag carrier holding a 60% share and the (LCC) a 30% share. WestJet (WJI), founded in 1996 and modeled after Southwest Airlines (SWA), has engaged (ACN) in heated fare wars that have forced the larger airline to keep fares low on many high-density domestic routes and offer its own low-cost services.
E190 (00028, C-FGLY), delivery.
June 2006: (ACN) flew 4.06 billion (RPM)s passenger traffic in May, a +5.7% increase over the year-ago month. Capacity rose +2.2% to 4.93 billion (ASM)s, lifting load factor +2.7 points to 82.3% LF. Domestic traffic grew +2.6% to 1.32 billion (RPM)s as capacity increased +4.9% to 1.67 billion (ASM)s and load factor fell -1.7 points to 79% LF. International (RPM)s jumped +4.9% to 2.1 billion as capacity dropped -0.8% to 2.44 billion (ASM)s, raising load factor +4.7 points to 86.2% LF.
Air Canada launched daily Montreal - Denver service aboard an A319. Air Canada (ACN) Jazz inaugurated nonstop service from Toronto to Salt Lake City. The daily year-round service is operated with a Canadair CRJ705. Air Canada (ACN) will inaugurate nonstop service from Edmonton to Las Vegas on September 7th. The airline will operate 2 flights a week, on Thursdays & Sundays using an A319. Air Canada (ACN) will inaugurate nonstop service from Winnipeg to Las Vegas on September 7th. Air Canada (ACN) Jazz will operate 2 flights a week, on Thursdays & Sundays, using a CRJ705. Air Canada (ACN) will inaugurate nonstop seasonal winter service from Calgary to Palm Springs on December 15th. Air Canada (ACN) Jazz will operate the daily flight with a CRJ705.
In what All Nippon Airways (ANA) President & (CEO), Mineo Yamamoto described as a "great day for (ANA) and the Star (SAL) Alliance, and the dawn of a new age" for air travel in Japan, 10 of the 11 Star (SAL) Alliance airlines serving Tokyo Narita begin operating today from co-located facilities in the airport's Terminal 1 South Wing. Star members that moved overnight into the newly rebuilt terminal are (ANA), Air Canada (ACN), Asiana Airlines (AAR), Austrian Airlines (AUL), Lufthansa (DLH), (SAS) Scandinavian Airlines, Swiss International Air Lines (CSR), Singapore Airlines (SIA), Thai Airways (TII), and United Airlines (UAL). Air New Zealand (ANZ), which has a code sharing relationship with Japan Airlines (JAL), remains in Terminal 2.
Bringing the carriers under one roof will result in international-to-international connecting times being reduced >-50% from 110 minutes to 45 minutes and create "huge opportunities" to develop domestic connections with (ANA), according to Star (SAL) Alliance (CEO) Jaan Albrecht. In total, the 10 airlines offer more than 794 weekly flights to 30 destinations in 15 countries from Narita.
Among the many firsts in the spacious and attractive South Wing, are common "zone check-in" areas for all carriers save (SIA), with check-in areas organized by class of travel across the airlines. The hall features a record 126 common-use self-service check-in kiosks and common-use check-in desks. (ARINC) is the technology vendor for both.
Travelers on (ANA), United (UAL), Air Canada (ACN) and Austrian (AUL) can use the kiosks, which are equipped with passport readers. By year end, Star (SAL) Alliance expects passengers on any of the 10 member carriers to be able to check in via the kiosks. The new terminal also offers curbside check-in, a 1st for Japan, and the country's 1st baggage reconnecting facility for passengers connecting from an international to a domestic flight.
Additional and upgraded premium lounges are part of the package, as is a new pier with 8 attached airbridges. (ANA) has 4 lounges with shower facilities, which it claims is a 1st for a Japanese carrier. Its domestic arrivals lounge also is equipped with showers.
This is the third and largest "Move Under One Roof" exercise for the Star (SAL) Alliance. Last year, it brought carriers at Paris Charles de Gaulle T1 together and Star members at Centrair near Nagoya also are co-located.
E190 (00031, C-FHIQ; 00036, C-FHIS; 00037, C-FHIU), delveries.
July 2006: Air Canada (ACN) mainline and Air Canada (ACN) Jazz flew a combined 4.4 billion (RPM)s passenger traffic in June, a +4.5% increase over the year-ago month. Capacity grew +2.4% to 5.32 billion (ASM)s and load factor climbed +1.7 points to 82.7% LF.
Air Canada (ACN)'s parent (ACE) Aviation Holdings announced the sale of an additional 2.75 million shares of US Airways Group (AMW)/(USA) stock in June and July "through a series of transactions on the open stock market," that netted proceeds of +$137.9 million. Air Canada (ACN)'s parent said it has earned +$205.5 million from the sale of shares in its Star Alliance partner from an initial investment of $75 million in September 2005. (ACE) still holds 500,000 shares.
Air Canada (ACN) sales, customer service and scheduling employees represented by the Canadian Auto Workers Union, were awarded a +1% wage increase effective this month, a +1.75% raise in July 2007, and another +1.75% raise the following year by an arbitrator. The raises cover approximately 5,540 workers.
Air Canada (ACN) announced the addition of three new routes to the USA: 2x-weekly flights to Las Vegas starting September 7 from Edmonton with A319s and Winnipeg with CRJ705s and daily seasonal Calgary - Palm Springs flights starting December 15. (ACN) also launched daily Toronto - Shanghai Pudong service aboard an A340-300, daily Montreal - Mexico City flights on an A319, and daily Embraer E190 service between Toronto and Abbotsford. Air Canada (ACN) Jazz started service to Yellowknife with daily CRJ flights from both Calgary and Edmonton. Air Canada (ACN) inaugurated nonstop service from Calgary to Yellowknife on Tuesday. Air Canada (ACN) Jazz now operates a daily flight using its CRJ-200. Air Canada (ACN) will resume nonstop service from Toronto City Airport to Montreal on August 28th. Air Canada (ACN) Jazz will operate 7 flights on weekdays, 2 on Saturdays and 4 on Sundays. Air Canada (ACN) will resume nonstop service from Toronto City Airport to Ottawa on August 28th. Air Canada (ACN) Jazz will operate 10 flights on weekdays, 2 on Saturdays and 5 on Sundays.
Air Canada (ACN) will inaugurate seasonal summer nonstop service from St John's Newfoundland to London. The airline will operate 3x-weekly, on Wednesdays, Fridays, & Sundays, using an A319. In May, the frequency will increase to 5x-weekly and from mid-June to September, the flight will operate on a daily basis.
Algeria and Canada concluded their first bilateral air accord, allowing access to airlines from both countries, according to the Arab Air Carrier Association. Code share services also are permitted. Air Algerie (ALG) announced plans to operate up to 2 weekly flights to Montreal, while Air Canada (ACN) intends to code share on flights to Algeria via Europe with existing partners.
A319-112 (1886, C-GKOC), returned to Oasis Internatioinal. A320-211 (279, C-FLSF), returned to (ILF).
August 2006: In July, (ACN) carriers flew a consolidated 4.95 billion (RPM)s passenger traffic, a +3.3% increase over the year-ago month, against a +3.7% rise in capacity to 5.99 billion (ASM)s that dropped load factor -0.3 point to 82.7% LF. The mainline flew 4.59 billion (RPM)s, up +0.8%, 5.49 billion (ASM)s, also up +0.8%, and load factor was a static 83.6% LF.
Buoyed by a +39.6% increase in second-quarter net profit to +C$236 million/+$210.4 million, Air Canada (ACN) parent (ACE) Aviation Holdings announced its intention to launch an Initial Public Offering (IPO) of a minority stake in the mainline and to "monetize" Air Canada (ACN) Technical Services (ACTS) later this year.
"The board has reaffirmed its strategy to maximize shareholder value by surfacing the underlying value of the subsidiaries," (ACE) Chairman, President & (CEO), Robert Milton said. He added that last year's flotation of the Aeroplan loyalty program and the launch of the Jazz (IPO) at the beginning of 2006 "were very successful [and] we expect both Air Canada (ACN) and (ACTS) to benefit in a similar way as we move ahead."
(ACE) operating revenues rose +9% to C$2.68 billion and expenses increased +10% to C$2.5 billion, leaving operating profit stable at +C$181 million compared to +C$178 million in the second quarter of 2005. The company realized a pre-tax gain of +C$100 million on its sale of shares in US Airways (AMW)/(USA).
The Transportation Services division posted second-quarter operating income of +C$113 million, a +6.6% increase over the year-ago quarter. Aeroplan's operating income climbed +24% to C$31 million, Jazz's operating income of C$36.5 million was up +33.2% and losses in the airframe maintenance division dropped (ACTS)' operating income -95% to +C$1 million.
The company flew a consolidated 12.25 billion (RPM)s in the June quarter, up +5% over the year-ago period. Capacity rose +3% to 14.93 billion (ASM)s, pushing up load factor +1.9 points to 82.1% LF. Yield increased +3% to C18.6 cents and passenger (RASM) was up +6% to C15.3 cents. Operating (RASM) also rose +6% to C18 cents. Unit costs increased +6% to C16.8 cents and +4% to C12.5 cents excluding fuel.
For the 6-month period, ACE's net profit nearly quadrupled to +C$354 million from +C$92 million. Revenues climbed +11% to C$5.17 billion against a +13% rise in expenses to C$5.05 billion. Operating income fell -29.2% to +C$119 million from +C$168 million.
Air Canada (ACN) Jazz won't be returning to Toronto City Centre Airport (YTZ) anytime soon following the Toronto Port Authority (TPA)'s refusal to approve a sublease that would have enabled the Regional to resume operations there. (ACN) Jazz was evicted from Toronto City in March by its landlord, City Centre Aviation and failed in its attempt to stop the eviction through an injunction. The move cleared the way for startup "Porter Airlines" to launch operations there this fall. Porter is owned by Regco Holdings, which also owns City Centre Aviation. (ACN) Jazz subsequently struck an agreement with Stolport Corp to sublease facilities at the airport, but (TPA) refused to approve the arrangement.
"We have repeatedly told the (TPA) that we'll not stand victim to the commercial regulation and limitations they seek to impose on our operations at the Toronto City Centre Airport," (ACN) Jazz President & (CEO) Joe Randell said. He described the conditions set by the agency for an agreement as "well outside the norms of the aviation industry," but added that (ACN) Jazz remains committed to returning to (YTZ) and will "pursue the matter through all appropriate avenues, including the courts." Porter, which said it "is willing to make the type of long-term commitment to the airport that Air Canada (ACN) never has," will launch 10x-daily weekday flights to Ottawa in the fall and plans to announce its schedule, fares and launch date "in the coming weeks."
Air Canada (ACN) Jazz launched daily CRJ service from Edmonton to Victoria, Calgary to Comox and Winnipeg to London, Ontario, and
2x-daily Edmonton - Kelowna flights.
Air Canada (ACN) announced a +13% year-over-year service increase to vacation destinations during its winter schedule, or nearly 10,000 seats per week. Included in the additions, are a new Toronto - Sarasota service starting November 4 and increasing to daily from December 16 on Embraer E190s, 3x-weekly on Wednesdays, Fridays, & Sundays, Calgary - Fort Lauderdale flights from October 29 aboard A319s, daily Calgary - Palm Springs service starting December 15 aboard CRJ705s, 2x-weekly flights to Las Vegas beginning September 7 from Edmonton with A319s and Winnipeg with CRJ705s and weekly Edmonton - Cancun flights from December 20 aboard a 767. (ACN) also will launch weekly A319 flights from Toronto to Cozumel from December 15 and Ixtapa from December 16 and from Halifax to Cozumel on February 8, weekly Edmonton - Punta Cana service from December 21 on a 767, 207 PAX, and weekly Halifax - Holguin flights from February 8 aboard an A319.
Air Canada will launch 3x-weekly on Tuesdays, Thursdays, & Saturdays, Edmonton - London Heathrow service on October 31, increasing to daily from April 1, 2007, using a 767-300ER.
Air Canada (ACN) named Senior Director Daniel Shurz, VP Network Planning. He succeeds Benjamin Smith, new President and (CEO) of Air Canada (ACN) Vacations. Also, Senior Director Strategic Marketing Charlie McKee was named VP Marketing.
Boeing said it has firmed the design configuration for the 777F freighter, which was launched 15 months ago with an order from Air France (AFA) and will be the 6th version of the 777.
The manufacturer said (AFA) "has been closely involved in the airplane's design and development." The airline will take delivery of the 1st of 5 777Fs in the last quarter of 2008.
According to Boeing, the 777F will have a range of 4,895 miles/9,065 km with a full payload. Maximum takeoff weight will be 766,000 lb/ 347,450 kg with a revenue payload capability of 229,000 lb/103.9 metric tons. It will be capable of accommodating 27 standard pallets on the main deck, 10 pallets in the lower cargo hold and 600 cu ft/(17 cu m of additional bulk cargo.
"The 777 freighter is designed to complement 747 cargo operations with easy direct-transfer shipments," Dennis Todd Engineering leader for the 777F program, said. "In addition, operators will benefit from the freighter's commonality with the passenger models of the 777 family."
The 777F is based largely on the 777-200LR passenger airplane and will be powered by (GE90-110B1)s. Emirates (EAD), Air Canada (ACN) and Avion Group (AID) have placed a combined 18 firm orders for the type.
2 E190-100 IGW'S (00041, C-FHJJ; 00044, C-FHJU), deliveries.
September 2006: Air Canada (ACN) mainline and Jazz flew a combined 5.04 billion (RPM)s passenger traffic in August, up +2.5% from the year-ago month. Capacity rose +3.5% to 6.02 billion (ASM)s, dropping load factor -0.8 point to 83.7% LF. Domestic traffic grew +3.5% to 1.67 billion (RPM)s against a +4.9% lift in (ASM)s to 2 billion. Load factor fell -1.1 points to 83.4% LF. International (RPM)s dropped -2.6% to 2.59 billion, capacity fell -2.2% to 3.04 billion (ASM)s, and load factor was down -0.3 point to 85.2% LF.
Air Canada (ACN) is adding capacity to Eastern Canada following the demise of Halifax-based CanJet Airlines (CNJ)'s scheduled service. From October, (ACN) and Air Canada (ACN) Jazz will add weekday flights from Halifax to Toronto, Montreal, Ottawa and Deer Lake. "For November and beyond, Air Canada (ACN) will analyze market conditions and look for opportunities to increase Air Canada (ACN) and Jazz service to meet customer demand," the company said. Air Canada (ACN) launched 2x-weekly flights to Las Vegas from Edmonton aboard an A319 and from Winnipeg aboard a CRJ705 operated by Jazz.
Air Canada (ACN) discontinued nonstop service from St John's (NFL) to London Heathrow (LHR) after >50 years of service on the route.
Air Canada (ACN) inaugurated nonstop service from Winnipeg to Las Vegas. Air Canada (ACN) Jazz now operates 2x-weekly service, on Thursdays & Sundays, using a CRJ705.
(SAS) Cargo became the 8th airline to join Cargo Portal Services (CPS), the Unisys-operated online booking portal that gives freight forwarders free Internet access to member carriers' schedules and space availability and the ability to book and confirm shipments in real time. (CPS) membership includes American Airlines (AAL), Air Canada (ACN), Austrian Airlines (AUL), (KLM), Northwest Airlines (NWA), and United Airlines (UAL). Continental Airlines (CAL) is in the process of going live.
(ACN) signed a deal with (ITA) Software to develop a new reservation management system for deployment late next year, replacing its old RES III system. Lise Fournel, the airline's Senior VP of e-commerce and Chief Information Officer (CIO), said the new system will take a modular approach and include all reservations, inventory control, seat availability, check-in and airport operations systems. The transition to the new reservations system is slated for next year. Airport modules will probably be rolled out in 2008. (ITA) already has some modules in place, she said, such as domestic and international faring, but the airport systems will be entirely new. "We wanted to change, and we needed a partner that was ready to work with us," she said. "We needed some people who were highly creative. They have creativity." The deal was signed as Air Canada (ACN) wrapped up a program "to simplify all our processes and our offerings to our customers" in preparation for the development of the new system, Fournel said. That project entailed reducing the number of fares, automating vouchers and (MCO)s and streamlining procedures for handling groups. In all, 1,500 items came under the simplification process, Fournel said. Air Canada (ACN) wanted a completely new system that could accommodate its new approach to selling air travel. "We're talking about products with attributes, not just transactions," Fournel said. The carrier's Tango fares, which offer both upsell and downsell opportunities, and its multi-city passes are examples, but the carrier wants to do much more. Air Canada (ACN) also envisions a sort of "e-bank" system, in which each passenger would have a personal account and "interact with us in a fully automated mode," Fournel said. For example, if a customer canceled a flight, the credit would automatically go back into his e-bank. The system will enable the carrier to capture more customer information and, in turn, provide a more personal experience. "The same information will be available at all points of contact," Fournel said, so if the customer has a current or past problem, any airline agent will have the details at hand. Air Canada (ACN) had weighed participating in the new reservations system that Amadeus is developing for the Star (SAL) Alliance, based on its Alta platform.
But the carrier was concerned that the Star system would not address its particular needs and nontraditional style of merchandising. "It would have required so much home-grown development," Fournel said.
Air Canada (ACN) has been meeting with its Star partners and with Amadeus to ensure that the two systems have "connectivity right up front," she said.
E190-100's IGW (00044, C-FHJU; 00046, C-FHKA), delivery.
October 2006: Air Canada (ACN) mainline and Jazz flew a combined 4.33 billion (RPM)s passenger traffic in September, a rise of +2% from the year-ago month. Capacity was up +3% to 5.49 billion (ASM)s, dropping load factor -0.7 point to 79% LF.
(ACE) Aviation Holdings, parent of Air Canada (ACN), said its shareholders overwhelmingly approved a statutory arrangement under the Canada Business Corporations Act giving (ACE)'s board the authority to make "one or more special distributions to shareholders" of up to C$2 billion in capital, including units of its Aeroplan Income Fund subsidiary. It is expected to be completed by year end. The measure passed with 95.5% approval and was approved by Quebec Superior Court. The Air Canada (ACN) Pilots Assn is challenging the plan, saying it is "oppressive and unfairly disregards the interests of Air Canada (ACN)'s creditors."
Air Canada (ACN) will inaugurate nonstop service from Montreal to Rome Fiumicino on June 1st. The airline will operate a daily flight on a seasonal summer basis through September 30th using a 767-200ER.
(ACE) Aviation Holdings, which was created during the bankruptcy reorganization of Air Canada (ACN), unveiled its previously announced plans for the flotation of the airline unit.
The parent company filed a preliminary prospectus with Canadian securities authorities qualifying the offering of Class A variable voting shares and Class B voting shares. The inital public offering (IPO) will be comprised of a treasury offering by (ACN) for gross proceeds of C$200 million/$176 million and a secondary offering of an undetermined size by (ACE) of (ACN) shares. (ACE) will retain a majority interest in the airline.
"Since Aeroplan and Jazz became publicly traded companies in June 2005 and February 2006, both businesses have developed well as standalone companies with outside investors and delivered strong financial results. We expect Air Canada (ACN) to benefit in a similar way as we move ahead," (ACE) Chairman, President & (CEO) Robert Milton said.
(ACE) said it expects that Air Canada (ACN) will have cash and cash equivalents in excess of C$2 billion upon the completion of the offering and pre-closing transactions. (ACN) also will have access to a C$400 million senior secured revolving credit facility, pursuant to an amended and restated credit agreement entered into with a syndicate of lenders. The Bank of Montreal is the administrative agent.
Air Canada introduced a new pricing system, available on its website, that offers "a la carte options," that allow passengers to pay for specific services or to save money, by choosing not to use certain services.
The carrier is offering four fare types (Tango, Tango Plus, Latitude and Executive) and gives passengers the option to add or subtract items based on individual preferences.
The offerings include value-added car rental and hotel services, lounge access for Latitude customers for C$25/$22.30, advance seat selection for Tango customers (C$15), a C$5 inflight meal voucher option for Tango and Tango Plus customers, and options for Tango, Tango Plus and Latitude passengers to save C$5 by not checking baggage and for Tango passengers to save C$7, by agreeing not to change or cancel flights and C$3 by declining frequent-flier miles.
"Air Canada (ACN) is making it easier than ever for customers to choose only the products and services they want, with pricing that is transparent and clearly understandable," VP Marketing, Charles McKee said. "By coupling our branded fares with a la carte options on our revamped website, we are providing people an unprecedented ability to find the best value for their travel dollar through flexibility and product selection. As they build their individual tickets, travelers will see exactly what they are paying for, and thus be better able to determine whether to spend more for the added services they want, or to save money on those things they can do without." He noted that more options will be added in the future.
767-209 (22682), returned to lessor.
November 2006: Air Canada (ACN) and Air Canada (ACN) Jazz flew a combined 3.95 billion (RPM)s passenger traffic in October, a +4.6% increase over the year-ago month. Capacity climbed +3.8% to 5.03 billion (ASM)s and load factor was up +0.6 point to 78.4% LF.
1st 9 months = 56.2 billion passenger traffic, +1.6% (RPK).
(ACE) (ACN)'s nine-month profit of +C$457 million represented a +25.9% gain over the +C$363 million earned in the year-ago period. Its operating profit fell -34.2% to +C$322 million.
Falling operating income and a C$102 million/$90.2 million noncash pre-tax charge related to the redemption of Aeroplan miles issued before 2002, weighed heavily on (ACE) Aviation (ACN)'s bottom line, as the Air Canada (ACN) parent reported a third-quarter profit of +C$103 million, down -62% from +C$271 million earned in the year-ago period.
Chairman, President and (CEO) Robert Milton called the result "solid" and said the quarter featured "continued progress achieved in the implementation of (ACE) (ACN)'s business strategy" of spinning off its various subsidiaries.
Operating revenues climbed +4% to C$2.95 billion against a +5.2% increase in expenses to C$2.64 billion. (ACE) (ACN) booked the Aeroplan charge as an operating expense, which helped drive down its operating profit -36.8% to +C$203 million from the +C$321 million earned in the 3rd quarter of 2005. A +C$52 million gain realized as part of its sale of US Airways (AMW)/(USA) stock helped boost the bottom line. The company also reported a +C$100 million gain on the disposal of (USA) shares in the 2nd quarter.
On the subsidiary level, Air Canada (ACN) Services reported quarterly operating income of +C$130 million, down -52.2% compared to the year-ago quarter. Aeroplan had operating income of +C$33 million, up +57.1%; Air Canada Jazz earned +C$39 million, up +2.6%, and Air Canada (ACN) Technical Services' operating profit plunged -66.7% to +C$5 million.
(ACN) and Jazz flew a consolidated 14.35 billion (RPM)s passenger traffic during the quarter, an increase of +2.6% over the year-ago quarter. Capacity climbed +3.3% to 17.53 billion (ASM)s as (ACE) (ACN) added 26 airplanes to its fleet, dropping load factor -0.6 point to 81.8% LF. Passenger yield was up +1.1% to C17.8 cents and operating (RASM) increased +0.5% to C16.8 cents. Unit costs rose +2% to C15.1 cents, but fell -0.9% to C10.7 cents, excluding fuel.
Air Canada (ACN) pilots (FC) were awarded pay raises in an arbitrator's ruling. The carrier said in a statement that arbitrator Douglas Stanley ruled that the 3,100 pilots (FC), represented by the Air Canada (ACN) Pilots Association, will receive a pay increase of +2% this year, retroactive to July 1, and raises of +1.75% in each of the next two years.
In a separate arbitration ruling issued yesterday, Air Canada (ACN) Jazz flight attendants (CA) were awarded a +1% pay increase, retroactive to June 1, and raises of +1.75% in each of the next two years. The 740 flight attendants (CA), represented by Teamsters Canada, also were deemed eligible to participate in the Regional's profit-sharing plan.
Air Canada (ACN) launched Edmonton - London Heathrow flights aboard a 211-seat 767-300ER. The service, the only direct flight from Edmonton to Europe, will be operated 3x-weekly initially and increase to daily on April 1.
Air Canada (ACN) and WestJet (WJI) responded to the Canadian government's new "Blue Sky" policy with guarded optimism this week, saying they looked forward to the opportunities that would accompany new bilateral agreements, open skies and liberalized access and pricing, but that "a level playing field" is critical to ensuring Canadian carriers can compete.
"Air Canada (ACN) has been supportive of a liberalization of Canada's international aviation agreements, provided it is done on an equitable and reciprocal basis," Executive VP & (CCO), Sean Menke said. "Canadian carriers face higher costs at home, than foreign carriers in their home countries, and this puts Canada's airlines at a competitive disadvantage. We call on Canada's new government to recognize this fundamental inequality." WestJet (WJI) currently flies only within Canada, to the USA and the Caribbean, and said it "welcomes the chance to compete aggressively in the international arena, but only if we can do so equitably."
The government did say in "Blue Sky," the primary objective of which is to negotiate reciprocal open skies agreements, similar to the one reached with the USA last year, and the UK in April, that Canadian airlines "should have the opportunity to compete in international markets on a reasonably level playing field." It has no plans to allow cabotage. The Canadian Airports Council expressed satisfaction with the policy, but called on the government to "commit more resources to border services."
E190 IGW (00052, C-FHKI), delivery.
December 2006: Air Canada (ACN) and Air Canada (ACN) Jazz flew a combined 3.3 billion (RPM)s passenger traffic in November, a +4.6% increase over the year-ago month. Capacity climbed +3.8% to 4.31 billion (ASM)s and load factor rose +0.6 point to 76.7% LF.
Air Canada (ACN) Technical Services (ACTS) entered into an agreement to acquire 80% of Aeromantenimiento SA, the Maintenance Repair & Overhaul (MRO) division of Grupo (TACA) (TAC), during the first quarter of 2007 for $44.7 million in cash and the right to acquire an equity stake in (ACTS) (expected to be less than 7%). Grupo (TACA) (TAC) Chairman & President, Roberto Kriete will join the (ACTS) board. "This is a key step in establishing (ACTS) as a leading (MRO) organization in the Americas," (ACTS) President & CEO, Chahram Bolouri said. Aeroman employs about 1,000 and is a founding member of the Airbus (EDS) (MRO) network. Major clients include (TACA) (TAC), JetBlue Airways (JBL), and US Airways (AMW)/(USA).
(CAE) signed contracts for three full flight simulators: A 777-300ER and an A330/A340 for Jet Airways (JPL), and a 777-300ER for Air Canada (ACN). Both contracts include a suite of Simfinity training devices. The (ACN) contract includes an option to provide a second 777 simulator. (CAE) valued the orders at list prices, including some buyer-furnished equipment, at C$51 million/$45 million.
Air Canada (ACN) said new airplanes entering its fleet, will continue to drive operating costs down.
Costs were down across the board in the 1st 9 months of 2006, Executive VP & (CFO), Joshua Koshy said in New York at the Calyon Securities Airline Conference, which was available via webcast.
Commissions declined -13% owing to increased Internet bookings, benefits were down -6%, salary and wages decreased -5% and food and beverage costs lowered -4%. "We believe that this is just the beginning," he said. "There's a lot more [cost savings] to come." Airplane maintenance costs rose +6% and fuel spiked +21% for the nine months but new, more efficient airplanes on order, will help to trim those expenses, he predicted.
Koshy noted that (ACN) will begin taking delivery of 18 777s on firm order next year. "The 777 is -26% cheaper on a (CASM) basis, than the A340-500s, the new planes we will be replacing," he said. He added that E190s, of which it has ordered 45, have "-18% cheaper costs per trip" than the A319s those jets are replacing. In addition, 14 787s on firm order to begin delivering in 2010, are -30% less costly to operate than the 767-300s they will replace.
"There's a huge potential to control our costs and continue to take them down," he said. "We've got an airline with a totally new revenue model and a huge potential for cost reductions."
Added President and (CEO0, Montie Brewer: "We are now profitable competing against low-cost carriers. Basically we've cracked the code and know how to compete with anyone." He said the new 777s and 787s give (ACN) potential for robust international expansion as it is the only major airline operating from Canada globally. "We can basically fly anywhere we want, and there are a lot of opportunities we haven't taken advantage of."
E190 (00055, C-FHKP), delivery.
January 2007: In 2006, Air Canada (ACN) had 71.08 billion (RPK)s passenger traffic (+2.1%) (world 14th highest).
The "Air Transport World" magazine gave Air Canada (ACN) the "Market Leadership" award, recognizing its initiative in reversing the commoditization of air travel through transparent branded fares, "a la carte" pricing on its website, and travel passes.
Air Canada (ACN) and Air Canada (ACN) Jazz flew a combined 3.9 billion (RPM)s passenger traffic in December, up +6.7% from the year-ago month. Capacity grew +4.5% to 4.98 billion (ASM)s, lifting load factor +1.6 points to 78.3% LF.
Air Canada (ACN) Jazz launched a seasonal daily Calgary - Palm Springs flight aboard a CRJ705. Service will operate until April 10.
The European Union (EU), which hopes to jumpstart transatlantic open skies negotiations in meetings with USA officials in Brussels, said that it plans to seek a separate open skies accord with Canada.
The European Commission (EC) said an (EU) - Canada deal "may generate consumer benefits of at least +$94 million through lower fares and could create +3,700 jobs in the first year." Canada currently has separate bilateral agreements with 17 (EU) member states, accords the (EC) said are in conflict with current (EU) law.
The Canadian Airports Council (CAC) embraced the proposal, urging the Canadian government "to make concluding an agreement a priority." (CAC) President & (CEO) Jim Facette said an "open aviation area with our second biggest trading bloc and source of tourists, is a natural next step and would be a boon." Air traffic between Canada and the (EU) doubled between 2000 and 2005, according to (CAC), which noted that more than half of Canada's overseas tourists come from Europe.
The (EC) said a liberalized air treaty would increase annual (EU) - Canada passengers from 8 million currently to 14 million by 2011. The Canadian government recently said it would make commercial air transport liberalization a priority.
(STG) Aerospace of the UK signed supply deals with both British Airways (BAB) and Air Canada (ACN) for its SafTGlo photoluminescent cabin floorpath marking system. (BAB) will install (STG)'s ColorMatch product across its 757 fleet. (ACN)'s order was one of the largest single deals in (STG)'s history, the company said, adding that 2006 marked a record sales year thanks in large part to the ColorMatch technology that allows airlines to install strips that match cabin decor.
E190-100 (00064, C-FHKS), delivery. 2 A320-200s (333, 384), to KJ Aviation Services and leased to Lat Charter.
February 2007: Air Canada (ACN) reported 2006 operating income of +C$259 million/+$218.5 million, down -18.6% from +C$318 million in the prior year, as revenue rose +6.4% to C$10.07 billion and expenses increased +7.3% to C$9.81 billion.
(ACN) posted a 4th-quarter operating loss of -C$5 million, narrowed from an operating loss of -C$91 million in the year-ago quarter. President & (CEO) Montie Brewer described the period as "one of the strongest 4th quarters in Air Canada (ACN)'s history."
But the airline declined to release its net income for the full year or fourth quarter in a nontraditional earnings report issued Friday, leading to confusion over its financial performance. It said it expects to complete an audit this week, enabling it to release more complete results.
Parent (ACE) Aviation Holdings, which retains a holding of >70% in (ACN) following last year's Initial Public Offering (IPO), that spun off the airline, reported operating income of +C$395 million for 2006, down -13.2% from +C$455 million in 2005. Its 4th-quarter operating income was +C$65 million, reversed from a -C$34 million operating loss in the year-ago quarter. (ACE) also declined to release net income for the year or quarter.
"Our results are on track," Brewer said. "Consumers are responding favorably to our value-based fare products, that are successfully differentiating Air Canada (ACN) from the competition, and at the same time, our distribution costs have been significantly reduced in line with leading low-cost carriers (LCC)s. Looking forward, revenue and cost performance are on track aided by continued strong future bookings."
Full-year mainline traffic grew +2.1% to 45.09 billion (RPM)s on a +0.9% lift in capacity to 55.66 billion (ASM)s, producing a load factor of 81% LF, up +0.9 point. Full-year (CASM) climbed +3.6% to 16.41 cents. (CASM), excluding fuel, rose +0.8% to 12.21 cents.
Air Canada (ACN) plans to launch 3x-weekly, Toronto - Shanghai service on April 6, increasing to daily on June 30 and returning to 3x-weekly for the 2007 - 2008 winter schedule. It also will double its Vancouver - Beijing service to 2x-daily July 1 - September 30. Air Canada (ACN) announced the following new services: Halifax - New York LaGuardia (daily from April 1 aboard an Air Canada (ACN) Jazz CRJ), Toronto - Deer Lake (daily from May 4 aboard an A319), and seasonal Halifax - Edmonton (daily June 15 to September 16 aboard an A319).
Starting April 30th, Zurich - Delhi discontinued.
A320-211 (426), returned, leased to Air Comet (APZ).
March 2007: Air Canada (ACN) and Jazz flew a combined 3.59 billion (RPM)s passenger traffic in February, a +5.6% increase from the year-ago month. Capacity climbed +3.7% to 4.51 billion (ASM)s and load factor was up +1.4 points to 79.6% LF.
Air Canada (ACN) introduced subscription flight passes in the USA, allowing customers unlimited air travel for a flat monthly rate for three or six months or a predetermined number of flights during a 12-month period. Passes can be bought for specific zones in the USA or the whole country, and prices include airport fees, charges and taxes and feature (ACN)'s various fare/benefit levels.
(ACN) announced the addition of 2x-daily, Vancouver - Sacramento service beginning June 15, and flights from Calgary to Seattle (2x-daily), and Prince George (daily) starting June 1, all aboard Air Canada (ACN) Jazz 50-seat CRJs. Seasonal daily Edmonton - Halifax service will launch June 16. Among the frequency increases announced for the summer schedule are Vancouver - Beijing to 2x-daily from July 1, Calgary - New York (JFK) to 2x-daily, and Edmonton - London Heathrow to daily on April 1.
Canada's airports and government, already under fire for high fees, were forced to defend against charges from a senior Canadian legislator that airport security is lax and little more than a "Oublic Relations (PR) show." Senate National Security & Defense Committee Chairman, Colin Kenny (Liberal, Ontario) said "gaping holes" pointed out in a 2003 report "are still gaping holes, more than four years later" and leave major Canadian airports vulnerable. In a new report issued recently, the committee charged that the airports "are riddled with organized crime" and accused Transport Canada, which has responsibility for security oversight, of "blatant stupidity" for searching fewer than 2% of personnel entering restricted areas. "Transport Canada should get out of the security field and focus on areas in which it has competence," Kenny said.
Transport Minister Lawrence Cannon called Kenny's remarks "misleading" and "inappropriate coming from a senator." Canadian Airports Council, President & (CEO), Jim Facette said Kenny had taken "a simplistic look at aviation security" that failed to appreciate "the combined layers of security" that put Canadian airports "at the forefront of the world in safety and security."
(IATA) (IAT) and the Air Transport Association have complained that the government and airports impose taxes and fees on airlines that are too high, particularly a passenger security charge that is tacked onto flight tickets. (IATA) Director General & (CEO) Giovanni Bisignani said the charge yielded C$1.25 billion/$1.08 billion in 2002 to 2005, but complained that the government invested just C$820 million in aviation security during that period. "The Canadian government must stop looking at aviation security as a profit center," he said during a speech earlier this month in Vancouver.
Air Canada (ACN) will begin taking delivery next month of 8 777s coming this year, and plans to use them to launch daily, Vancouver (YYZ) - Sydney flights on December 14, the 1st nonstop service between Canada and Australia. Air New Zealand (ANZ) will code share. A 270-seat 777-200LR will replace the 777-300ER from February 1. (ACN) said it suspended plans to fly to Australia, via Los Angeles. It will introduce the 777 on its Toronto - London Heathrow service in April. Subsequent introductions will be on (YYZ) - Frankfurt and (YYZ) - Tokyo Narita (NRT) in June, (YVR) - (NRT) in July, and (YYZ) - Hong Kong in August. It has 18 777s on order.
Air Canada (ACN) President & (CEO) Montie Brewer said 48% of customers in the 2006 fourth quarter "willingly bought a higher fare" when purchasing tickets through (ACN)'s Web-based branded fare domestic pricing structure. Speaking at the National Bank Financial Transportation and Logistics Conference in Toronto, available via webcast, Brewer added that 25% of customers buying the lowest fare, purchased an additional amenity. "We've found that customers will buy up," he said. "For those who are willing to pay more, we now have a [pricing structure] to give them more and treat them better. People are changing the way they travel and we're working to take advantage of that."
777-333ER (35256, C-FITL), delivery. 2 A319-112s (1630, C-GITT; 1673, C-GJTA), returned to (ILF). 2 E190s (00070, C-FHNL; 00071, C-FHNP), deliveries.
April 2007: Air Canada (ACN) flew 3.94 billion (RPM)s passenger traffic in March, up +5% on the year-ago month. Capacity rose +2% to 4.7 billion (ASM)s, lifting load factor +2.4 points to 83.8% LF.
Zurich - Delhi, discontinued.
Air Canada (ACN) said that an arbitrator awarded approximately 6,000 flight attendants (CA) represented by the Canadian Union of Public Employees a +2% wage increase effective July 2006, another +1.75% increase effective in July 2007, and an additional +1.75% in July 2008. "With receipt of this decision, the wage review process agreed to with all labor groups in 2003 has concluded," (ACN) said.
Air Canada (ACN) converted 23 options and purchase rights into firm orders, lifting the carrier's 787 Dreamliner commitment to 37. It also took 23 new options. (ACN) will reduce its 777 commitment by two airplanes, that were scheduled for delivery in 2009. It now is scheduled to take 16 777s from Boeing and one from (ILFC) (ILF) by the end of next year. (ACN) said the revised order will enable it to replace "substantially all" of its leased 767s when those terms expire. It is engaged in a major fleet renewal program, under which it will phase out its 767-200s, 767-300s, A330s and A340s. It said it expects to remove eight widebodies and 15 narrow bodies from service this year.
(ACN) said the USA Export-Import Bank provided final commitments for loans covering seven 777s scheduled for delivery this year and a preliminary commitment covering next year's 777 deliveries and the 14 originally ordered 787s.
767-3YOER (24952), returned to (GEF), leased to LatCharter (LAJ). 777-333ER (35254, C-FITU) and E190 (00075, C-FHNV), deliveries. A319-112 (1742, C-GJVY), returned to (ILF).
May 2007: Air Canada (ACN) reported a first-quarter net loss of -C$34 million/-$30.7 million, narrowed from a net loss of -C$126 million in the year-ago quarter, on a +5.9% increase in revenue to C$2.53 billion. President & (CEO), Montie Brewer, noting that the first quarter is "traditionally the industry's weakest period" and that fuel costs were high, called the results "solid" and pointed to year-over-year improvement. "Performance in the domestic market, in particular, excelled," he said. Operating loss for the period was -C$78 million, narrowed from an operating deficit of -C$124 million in the year-ago quarter. Traffic grew +5% to 11.81 billion (RPM)s on a +3% lift in capacity to 14.74 billion (ASM)s, producing a load factor of 80.2% LF, up +1.5 points. Yield rose +2% to 18 cents as (RASM) climbed +3% to C17.2 cents and (CASM) increased +1% to C17.7 cents. (CASM) excluding fuel, was up +1% to C13.8 cents.
Air Canada (ACN) parent ACE Aviation Holdings posted a net loss of -C$72 million for the quarter, reversed from net income of +C$118 million in the year-ago quarter. Year-ago results included a +C$220 million gain resulting from ACE's Initial Public Offering (IPO) of (ACN) Jazz in January 2006. (ACN) Jazz reported a first-quarter net income gain of +5.5% to +C$35.3 million. Revenue increased +13.8% to C$364.2 million as expenses grew +15.2% to C$43.2 million, producing operating income of +C$36.3 million, up +2.8%. (ACN) Jazz officials attributed the robust performance in part to the addition of nine new airplanes and a +12.1% lift in block hours flown. The regional carrier derives 99% of its income from its capacity purchase agreement with (ACN).
Starts Toronto - Deer Lake, using A319s. Calgary - Abbotsford, discontinued. Starting June 1st, Calgary - Prince George, - Seattle, using CRJ-200s, and Montreal - Rome Fiocimo (FCO), using 767-200s. Starting June 15th, Halifax - Edmonton, using A319s and Vancouver - Sacramento, using CRJ-200s. Starting September 16th, Halifax - Edmonton, discontinued. Starting December 14th, Vancouver - Sydney, using 777-200s.
World Airways (WLD) signed a one-year, $22.5 million deal to continue operating Toronto - Frankfurt MD-11F freighter flights for Air Canada (ACN), extending an agreement set to expire July 1.
Air Canada (ACN) named Executive VP & (CCO), Sean Menke Executive VP Commercial Strategy, focusing on long-term strategy and the implementation of (ACN)'s new Polaris reservation system. Air Canada Vacations President & (CEO), Benjamin Smith was named Executive VP Commercial, succeeding Menke.
E190 (00077, C-FHNW) delivery. A320-211 (311), returned to lessor, leased to LatCharter (LAJ). A340-313X (150), returned, leased to Swiss (CSR).
June 2007: Air Canada (ACN) Jazz started daily Vancouver - Sacramento flights aboard 50-seat CRJs.
(ACE) Aviation Holdings, parent of Air Canada (ACN), agreed to sell a 70% interest in its wholly owned maintenance, repair and overhaul (MRO) subsidiary Air Canada Technical Services (ACTS) to an investment consortium that includes Sageview Capital and (KKR) Private Equity Investors in a transaction valuing (ACTS) at approximately C$975 million/$912.2 million. ACE will retain 30% and Air Canada (ACN) will remain (ACTS)' largest customer. "This transaction is an important step in (ACE)'s strategy of unlocking the value in all of our businesses," President & (CEO), Robert Milton said. He added that the move is in line with the company's strategy of making (ACTS) a more profitable standalone entity. Sageview and (KKR) "have a track record of helping businesses that were once part of large conglomerates to become bigger, stronger and more competitive as independent organizations," he explained. "This investment brings us closer to our goal of establishing (ACTS) as the leading independent airplane maintenance provider in the Americas," President & (CEO), Chahram Bolouri said. "Canada is a mature market for (ACTS). To be successful, we have to leverage our current capabilities and expand beyond our borders to capture a growing share of an C$18 billion market opportunity for (MRO) in North and South America."
The transaction is expected to close during the third quarter and is subject to regulatory approval. (ACTS) employs approximately 4,800.
Air Canada (ACN) cited record load factors for its decision to stop flying pets beginning July 15. The current policy allows pets to be boarded in the cargo hold, but with the increasing number of passengers and their luggage, it has become more difficult to accommodate pets, an (ACN) spokesperson said. The airline stopped transporting pets, save for service animals, in the cabin in September 2006 after it found it increasingly difficult to balance pet owners' interests with those who were unwilling or unable to sit near an animal. "We tried to reseat passengers away from the source but with record load factors, it became more difficult. We try to devise policies that are fair to each customer," the spokesperson said, noting that carriers such as Southwest Airlines (SWA), JetBlue Airways (JBL), Lufthansa (DLH), and Cathay Pacific Airways (CAT) have adopted similar policies.
E190 (00083, C-FHNX), delivery.
July 2007: Air Canada (ACN) and Air Canada Jazz flew a combined 4.5 billion (RPM)s passenger traffic in June, up +2% on the year-ago month. Capacity climbed +1.8% to 5.43 billion (ASM)s and load factor rose +0.2 point to 82.8% LF.
Air Canada Technical Services (ACTS), the Maintenance Repair & Overhaul (MRO) provider, 30% owned by Air Canada (ACN) parent (ACE) Aviation Holdings, reached new 10-year agreements with both (TACA) (TAC) and Mexico's Volaris (VLS) for (MRO) work on components and related logistics, in deals valued at a combined C$200 million/$190.5 million. ACTS President & (CEO), Chahram Bolouri said the company "anticipates strong revenue growth" in its engine and component businesses for 2007 and that its acquisition of El Salvador's Aeroman "strategically positioned us to attract the business of carriers across the Americas."
The Carlyle Group, a private equity firm, reached a definitive agreement to acquire (ARINC) from its current shareholders, which include more than a dozen major airlines and Boeing (TBC). (ARINC), which generates more than >$900 million in annual revenue, specializes in transportation communications technology, and its Air Traffic Control (ATC) support systems are used by carriers and airports throughout the world. Primary shareholders in the 77-year-old company based in Annapolis, include American Airlines (AAL), United Airlines (UAL), Delta Air Lines (DAL), Continental Airlines (CAL), Northwest Airlines (NWA), US Airways (AMW)/(USA), Air Canada (ACN), Air France (AFA)/(KLM), Lufthansa (DLH), British Airways (BAB), Mexicana (CMA), Swiss International Air Lines (CSR), TACA (TAC), FedEx (FED), Hawaiian Airlines (HWI), and Philippine Airlines (PAL). (AAL) said it would receive $194 million from the sale of its stake and (UAL) expects $125 million. Other carriers did not immediately disclose expected proceeds and (ARINC) did not release financial details. The company said the transaction is expected to close in the third quarter subject to regulatory approval. "This is an important step in the evolution of (ARINC)," Chairman & (CEO), John Belcher said. "We have worked very hard to find a partner, who shares our vision and believe that Carlyle's international presence, financial resources, and expertise in the aerospace, defense and communications sectors will be instrumental in the continued expansion of our business." Carlyle Managing Director & Head Global Aerospace & Defense, Peter Clare said, "We believe that (ARINC) is well positioned to capitalize on several favorable macro trends in both its commercial and government market segments." (ARINC) earned net income of +$10.2 million in 2006, a +14.3% decrease from +$11.9 million in 2005. Its annual revenue has risen steadily this decade, increasing +72.7% from $532 million in 2000 to $919 million last year.
2 E190s (00092, C-FLWE; 00094, C-FLWH), deliveries. A340-313X (1267, C-FYLC), sold to (LAN) Airlines.
August 2007: Air Canada (ACN) and Jazz flew a combined 5.05 billion (RPM)s passenger traffic in July, up +1.9% on the year-ago month, against a +2.9% lift in capacity to 6.17 billion (ASM)s. Load factor fell -0.9 point to 81.8% LF.
Reporting as a standalone company following ACE Aviation Holdings' spinoffs of its various subsidiaries including Air Canada (ACN) Jazz, Air Canada (ACN) - - formerly Air Canada (ACN) Services (ACS) - - reported a +C$155 million/+$147.3 million profit in the second quarter, up +2% from the +C$152 million (ACS) posted in the year-ago period.
The result was due largely to a +C$160 million gain on the revaluation of foreign currency monetary items that compared to a similar +C$108 million boost in the second quarter of 2006. (ACN)'s operating profit dropped -22.1% to C$88 million from C$113 million, which it attributed to "costs related to the introduction of new airplanes and the maintenance preparation for outgoing leased and subleased airplanes." (ACN) put its first four 777s into service during the quarter and has taken delivery of three more since June 30. It also added four E190s. "There is still much work to be done. However, we have made progress in creating a solid foundation for sustained profitability . . . We are anticipating a much improved second half," President & (CEO), Montie Brewer said.
Operating revenue rose +2.3% to C$2.64 billion, a performance Brewer said was "encouraging mainly due to strong domestic Canada and Asia/Pacific markets," adding that the UK market "underperformed" and that the 777s will allow (ACN) to transfer UK capacity to the Asia/Pacific.
The airline (ACN), not including Jazz, flew 12.58 billion (RPM)s passenger traffic during the quarter, a year-over-year increase of +2.7%. Capacity climbed +2% to 15.22 billion (ASM)s and load factor rose +0.6 point to 82.7% LF. Yield inched up +0.5% to 18.5 cents as operating (RASM) was steady at 17.3 cents. Unit cost rose +1.2% to 16.7 cents, or by +2.4% to 12.6 cents, excluding fuel.
Half-year income of +C$121 million was more than four times greater the +C$26 million earned in the year-ago semester. Operating profit of +C$10 million represented a reversal from a year-ago loss of -C$11 million.
(CAE) and Air Canada (ACN) signed contracts valued at C$60 million/$56.4 million over 15 years giving (CAE) responsibility for "operation services" at (ACN)'s Toronto and Vancouver training centers. (CAE) also will market excess training capacity to third parties. (ACN) will continue to conduct its own pilot (FC) training, including curriculum and instructors.
Galileo and Air Canada (ACN) announced a multiyear agreement under which Galileo-connected Canadian travel agents will have access to (ACN)'s "a la carte" fare products and Flight Passes, through a "revolutionary" desktop solution. (ACN) will be the first airline to use the application. The solution, which Galileo developed, uses (ACN)'s direct-connect application, programming interface platform, called "AC2U" and integrates the carrier's Web-only content with content from Galileo's Global Distribution System (GDS). Galileo said it intends to make the application available to Canadian travel agents in the fourth quarter.
Air Canada (ACN) said it will launch weekly seasonal service from Vancouver to San Jose del Cabo and Ixtapa December 21 to 22 aboard A319s. The move follows rival WestJet (WJI)'s announcement that it will start seasonal flights to Mexico for the first time, including a Vancouver - San Jose del Cabo route. WestJet (WJI) has authority to operate to Ixtapa but has not announced service there. Separately, (ACN) said it will boost its thrice-weekly Edmonton - London Heathrow service to daily. It is the only carrier operating the route.
Air Canada (ACN) announced the addition of the following new services from Ottawa: 5x-weekly to Fredericton, from October 28 aboard 37-seat Dash 8s; daily to Moncton, from October 28 aboard 50-seat CRJs; daily to St John's, from October 28 aboard 93-seat E190s; Saturdays to Cancun and Montego Bay, from December 22 aboard E190s (seasonal); plus continuation of its 2x-weekly Las Vegas flights and winter frequency increases to Vancouver, Calgary, Edmonton, London (Ontario) and Boston. From Montreal, (ACN) will operate seasonal weekly service to Turks and Caicos from December 20 and Santa Clara from December 23 and increase frequencies to Montego Bay, Orlando International and Quebec City. It also will launch daily flights from St John's to Calgary, Edmonton and Fort McMurray, add a second daily, Halifax - Gander flight, and continue several summer services.
777-233LR (35243, C-FIUF), delivery, A320-211 (342, C-FMJK), (GEF) leased and 3 E190s (00096, C-FLWH; 00097, C-FHON; 0101, C-FHOS), deliveries.
September 2007: Air Canada (ACN) introduced paperless boarding passes for customers who check in using a Personal Digital Assistant (PDA) or cell phone. The service allows the option of receiving an electronic boarding pass in the form of an (SMS) text message, that the customer shows to airport security screening personnel and Air Canada (ACN) gate agents, in lieu of a paper boarding pass. The mobile service currently is available for boarding domestic Canada flights and those to international (non-USA) destinations, including connecting flights, from 60 airports across Canada served by Air Canada (ACN) and Jazz.
A340-312 (048), returned to (ILFC) (ILF). A340-541 (445, C-GKOL), sold to (TAM) Brazil (TPR). 3 E190s (0105, C-FHOY; 0108, C-FMYV; 0111, C-FMZB), deliveries.
October 2007: Air Canada (ACN) and its Jazz subsidiary flew a combined 4.48 billion (RPM)s passenger traffic in September, up +3.3% from the year-ago month. Capacity climbed +3.7% to 5.7 billion (ASM)s, and load factor slipped -0.2 point to 78.7% LF.
(ACN) announced the launch of a daily Toronto - Madrid service on June 15, 2008, aboard a 767-300. Air Canada (ACN) will launch 4x-weekly Toronto - Caracas service on April 6, and 3x-weekly Toronto - Port of Spain flights on April 8, both aboard 120-seat A319s.
Porter Airlines, a regional carrier that launched operations from Toronto City Centre Airport last October, on Friday sought an injunction from an Ontario Superior Court to force Air Canada (ACN) and its Jazz affiliate to sever all ties for allegedly violating Canadian competition laws and to pay Porter C$850 million/$878.4 million in damages. Porter's allegations were filed in a counterclaim to a lawsuit previously filed by Jazz, which operates regional services on behalf of (ACN) via a capacity purchase agreement. Jazz's lawsuit seeks "equal access" to Toronto City Centre for itself and other Canadian carriers. Porter is asking the court to "unwind the existing relationship between two of Canada's largest airlines." It said (ACN) and Jazz have "an agreement through which they effectively coordinate their activities to establish airfare prices, increase their market dominance, avoid competition between themselves and impede new competitors such as Porter Airlines." (ACN) issued a statement calling Porter's claim "frivolous, without merit," adding: "It should be noted that the relationship between Air Canada and Jazz is similar to that in place between other mainline and regional carriers in North America." (ACN) and Jazz were among the units spun off by (ACE) Aviation Holdings earlier this year. (ACE) retains stakes in each.
European Union (EU) transport ministers gave the European Commission (EC) a mandate to start negotiations with Canada on a comprehensive air transport agreement "aimed at establishing an open aviation area between the (EU) and Canada, opening market restrictions and achieving a high level of regulatory convergence." Currently, 17 of the 27 (EU) member states have bilateral aviation agreements with Canada, but none "are in conformity with Community law," the ministers noted. Canada started pursuing "open skies" arrangements last November, under a program called "Blue Sky" and has reached agreements with the USA, UK, New Zealand, Ireland and Iceland. The (EC) claims an (EU)-Canada "open skies" agreement would increase the number of passengers traveling between the regions, from the present 8 million to 14 million by 2011. In addition, it could create +3,700 jobs in the first year, and generate consumer benefits of at least €72 million/$102.2 million through lower fares. The (EU) and the USA reached an "open skies" accord earlier this year.
Air Canada (ACN) named Michael Rousseau as its new (CFO), effective October 22. Rousseau was President of Canadian retailer, Hudson's Bay Company and replaces Joshua Koshy, who is leaving the airline.
Air Canada Technical Services (ACTS) Aero Technical Support & Services reached a 10-year, C$70 million/$71.5 million deal with SkyWest Airlines to provide maintenance support on a "significant number" of airframe and engine components including line replaceable units for the airline's fleet of 121 CRJ200s and 70 CRJ700s.
Qantas (QAN), the largest customer for the 787, was among several carriers that offered generally muted responses to Boeing (TBC)'s announcement that it will delay first flight and first delivery by at least six months. (QAN) said the delivery delay will not "materially impact the operations of the Qantas (QAN) Group of airlines." (CEO), Geoff Dixon said Boeing (TBC) had assured the carrier that the 15 Dreamliners scheduled for delivery between August 2008 and December 2009 all would arrive by the 2009 date. "Boeing (TBC) said the August 2008 airplanes would slip, but not by six months. Once that airplane arrives, the remaining 14 airplane deliveries will be staggered until December 2009," he said. The group has 65 firm orders for the 787, 20 options and 30 purchase rights, with the first 15 scheduled for Jetstar Airways (IMU)'s long-haul operation. Dixon said Qantas (QAN) had contingency plans for any short-term capacity shortages. "Once Boeing (TBC) confirms a revised deliv
ery schedule, we will assess the need for any other measures, such as delaying the retirement of airplanes." (QAN) has struggled with the A380's two-year delay. The first of those airplanes now is scheduled for delivery in August 2008 - - the same date as the 787 originally was set to arrive. The airline has been forced to keep 747-300s in service longer than expected to make up for the capacity shortfall.
Meanwhile, North American customers were not anticipating a significant impact. A Northwest Airlines (NWA) spokesperson said, "We are disappointed by Boeing (TBC)'s delay, but we can adapt. It will be very important that Boeing (TBC) meet its new deadline, and we expect them to do so. A six-month slide in the test flight does not necessarily mean a six-month slide in all deliveries. Boeing (TBC) has committed to giving us an updated delivery schedule in the next few weeks." (NWA) has 18 787s on firm order.
Air Canada (ACN), which has 37 on order, said it has "not been advised of any impact on our deliveries," and that it still expects its first airplane to arrive in 2010. Continental Airlines (CAL) (25 on order) said it was "too early to tell" if the slip would impact its 2009 scheduled delivery date. Chairman & CEO, Larry Kellner maintained the 787 still "is destined to be a game-changer."
2 E190-100 IGWs (0115, C-FMZD; 0116, C-FMZR), deliveries.
November 2007: Air Canada (ACN) and Jazz flew 4.06 billion traffic (RPM)s in October, a +2.7% increase from the year-ago month. Capacity rose +2.4% to 5.16 billion (ASM)s and load factor was up +0.2 point to 78.6% LF.
Bolstered by the rising value of the Canadian dollar and helped by decreasing unit costs, Air Canada (ACN) reported third-quarter net income of +C$244 million/+$262.4 million, a more than sixfold jump over +C$44 million posted in the year-ago period. Revenue increased +7.1% to C$2.95 billion and operating income surged +170% to +C$351 million from +C$130 million last year. "Our new business model continues to perform well, delivering increases in yields and unit revenues, while reducing unit costs . . . [that] in every major cost area were flat or down from one year ago," President & (CEO), Montie Brewer said. The more than +25% increase in the value of the Canadian dollar compared to the USA dollar since January 1 was evidenced in the quarterly results, which benefited from net gains on foreign currency monetary items of C$104 million, compared to net losses of -C$3 million on such items in the year-ago period. Third-quarter traffic grew +3.1% to 14.79 billion (RPM)s on a +3.5% lift in capacity to 18.14 billion (ASM)s, producing a load factor of 81.5% LF, down -0.3 point. Yield improved +1.1% to C17.9 cents as (RASM) rose +3.4% to C16.3 cents, and (CASM) lowered -4.4% to C14.3 cents. (CASM) excluding fuel, and a labor restructuring charge was C10.4 cents, down -2.4%.
(ACN) said fourth-quarter capacity is expected to increase +2.5%, while full-year 2007 capacity is projected to rise +3%. Full-year (CASM) is forecast to lower -1%. The carrier projects capacity expansion of +2.5% to +4% (ASM)s in 2008.
1st 9 months = 57.83 billion (RPK)s traffic (+2.7%).
Parent (ACE) Aviation Holdings, created in 2004 as part of Air Canada (ACN)'s restructuring, reported third-quarter net income of +C$224 million, more than double +C$103 million last year, though it cautioned that the results are not comparable, owing to its ongoing sale of assets. Chairman, President & (CEO), Robert Milton said (ACE), which owns a 75% stake in (ACN), likely will continue its "pattern [of] selling into the market" and projected that the company could sell all its holdings within six months, and cease operating.
Canada and Singapore announced an "open skies" agreement allowing any carrier from either country to operate passenger and cargo flights to any city at any frequency, as well as to codeshare.
(ACTS), formerly Air Canada (ACN) Technical Services, reached a 10-year deal with Aero Inventory for the supply and management of its consumable airplane stock. Aero is expected to streamline (ACTS)' high-volume in-house inventory, work with numerous suppliers, accelerate customer turnarounds, increase access to consumable parts and reduce costs. The value of the contract was not disclosed.
Seven cargo airlines working in conjunction with (IATA) (ITA) and freight forwarders, initiated e-freight pilot programs on a number of selected trade routes. The airlines are Air Canada (ACN), British Airways (BAB), Cathay Pacific (CAT), (KLM), Martinair (MTH), (SAS), and Singapore Airlines (SQC). Cargo on key trade routes connecting the countries represented by the carriers, will be processed electronically. "The paper-free era for airfreight begins," (IATA) (ITA) Director General & (CEO), Giovanni Bisignani said. "This first wave of pilots (FC) will pave the way for a global rollout of e-freight that will eliminate the paper that costs this industry $1.2 billion every year. Combined, these documents could fill 39 747F cargo freighters each year, making e-freight a win for the business and for the environment." Participating freight forwarders in the e-freight pilot program are (DHL) Global Forwarding, Panalpina, Kuehne+Nagel, Schenker, (TMI) Group-Roadair, and Jetspeed. The potential impact of the increased efficiency in air cargo is expected to have "very broad implications across the global economy," Bisignani claimed. (AFA)/(KLM) said that based on its "experiences at [Amsterdam] Schiphol, we hope to introduce e-freight shipments on the [Paris] Charles de Gaulle network at a later stage" and that it is targeting 50% e-freight penetration on "important trade lanes" within five years.
Air Canada (ACN) announced a 10-year lease deal with (ILFC) (ILF) for one 777-300ER. (ACN) will take delivery of its 18th 777 and sixth 777-300ER in April 2009. It has placed orders with Boeing (TBC) for 16 777s plus 18 purchase rights.
777-233LR (35244, C-FIUJ), delivery. A319-112 (1853), returned to Pegasus (PSS). A319-112 (1963), returned to (GECAS) (GEF). 2 A340-541s (445; 464), to TAM Brasil (TPR). 3 E190s (0118, C-FMZU; 0124, C-FMZU; 0132, C-FNAI), deliveries.
December 2007: As of January 1, 2008, Robert Milton retires as Chairman and leaves the board of directors at Air Canada (ACN). He remains as Chairman & (CEO) of (ACE), where he plans to preside over the holding company's dissolution. (ACE) still owns 75% of Air Canada (ACN), 20.1% of Jazz, 20.1% of Aeroplan, and 23% of Air Canada Technical Services (ACTS). (ACE) hopes to sell these stakes over the next six months and distribute all remaining cash to its shareholders.
A319-114 (639, C-FYJB), returned to GECAS (GEF). 3 E190s (0134, C-FNAJ; 0136, C-FNAN; 0142, C-FNAP), deliveries.
January 2008: Air Canada (ACN) and Jazz flew 3.99 billion (RPM)s passenger traffic in December, up +2.4% from the year-ago month. Capacity rose +1.6% to 5.07 billion (ASM)s, lifting load factor +0.6 point to 78.8% LF.
2007 statistics: 74.56 billion (RPK)s +2.5%; +2.2% capacity (ASK)s; +.2 load factor for 81.3% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "ACN-2007-STATS."
Air Canada (ACN) will launch daily Ottawa - Frankfurt (FRA) service June 1 aboard a 767-300. Lufthansa (DLH) will codeshare. (ACN) will place its code on (DLH)'s 6x-weekly, Toronto - Dusseldorf service scheduled to operate May 1 to October, aboard an A340-300, and (DLH)'s second daily, Calgary - Frankfurt flight, launching April 14 aboard an A330-300. (ACN) also will transition its daily Montreal - (FRA) to a 777-300ER from an A330-300 on April 1.
Air Canada (ACN) Jazz launched a daily Ottawa - Montreal - St John service aboard a 50-seat, DHC-8-300. It will operate a daily Vancouver - Yellowknife flight, aboard a 50-seat CRJ until April 4 and will start daily, Ottawa - Charlottetown service on May 1 aboard a 50-seat CRJ.
Air Canada announced the following new routes: Twice-daily, Ottawa - Washington National (DCA), beginning May 1, operated by Air Canada (ACN) Jazz CRJ-100/-200s; daily, Toronto - Austin, from May 1 aboard a Jazz CRJ705; twice-daily, Toronto - Richmond, from May 1 aboard a Jazz Dash 8; daily, Calgary - Chicago O'Hare, starting May 15, on an EMB-190. (ACN) also announced a +19% year-over-year increase in seats to and from Ottawa from May 1, which will include new service to (DCA), Saskatoon (daily on a CRJ-705), Thunder Bay (daily, on a CRJ-100/-200) and Charlottetown (daily, on a CRJ-100/-200).
Air Canada (ACN) Technical Services reached a 10-year OnPoint Solutions agreement with (GE) for material to repair (CF34) engines, and a 10-year materials deal with (CFM) for the repair and overhaul of (CFM56) engines, specifically the -2, -3, -5A, -5B, and -5C. The contracts total an estimated $2.5 billion covering life-limited and nonlife-limited parts, plus component repair, and used materials for work on (GE) and (CFM) engines.
Airlines throughout the world are contending with antitrust charges made at the end of 2007 by the European Commission (EC), which has accused at least 11 and as many as 25 carriers of "cartel" activity relating to airfreight transport. In addition to British Airways (BAB), Japan Airlines (JAL), Air France (AFA)/(KLM), (SAS) Group, and Cargolux (CLX) (all of which confirmed receipt of statements of objections from the (EC) before Christmas).(ANA), Air New Zealand (ANZ), Air Canada (ACN), Cathay Pacific Airways (CAT), (LAN) and Singapore Airlines (SIA) have admitted to being charged.
(ACN) said, "It is not possible at this time to predict with any degree of certainty the outcome of these proceedings but these proceedings may result in liability to Air Canada (ACN), which may be material."
Carriers charged late last year, have two months from the receipt of statements of objections to respond in writing to the (EC) and also have the option of requesting a formal hearing. An airline found guilty or admitting to guilt can be fined up to 10% of its annual revenue.
INCDT: Air Canada (ACN) Flight 190, an A319 en route from Victoria to Toronto, was diverted to Calgary on January 10th for an emergency landing following what was described as extreme turbulence that caused 10 passengers to sustain what the airline termed "non-life-threatening injuries." Emergency personnel met the airplane following a smooth landing in Calgary and transported 10 of the 83 passengers to a local hospital. There were 5 crew (FC)/(CA)onboard. (ACN) said it was investigating this "incident," that created a "very stressful experience" for passengers and crew. Uninjured passengers told Canadian media that the A319 abruptly lurched "sideways" and then quickly went "back down." One of the injured passengers reportedly "hit the ceiling" during the incident. (ACN) warned against "speculation" and noted that most of the uninjured passengers were put on Calgary - Toronto flights later in the day.
Later, the Transportation Safety Board of Canada launched an investigation into this incident, but the mystery of exactly what happened and why it occurred remained unsolved. Neither (ACN) nor Airbus (EDS) offered an explanation. The downward drop reportedly was -4,000 to -5,000 ft. Several passengers said pilots (FC) announced afterward that there was a "computer malfunction" and that they were manually flying the airplane to Calgary. (ACN) did not confirm and said investigators should be given time to determine what happened. The safety board said turbulence, mechanical/computer failure, human error or a combination of factors are possible causes. Investigators, (ACN) and Airbus (EDS) are under pressure to explain what happened, with Canadian media giving prominent coverage to the incident. The "Globe" and "Mail" devoted most of its front page to the episode.
INCDT: On an Air Canada (ACN) 767 flight from Toronto to London with 9/146 on board, the co-pilot (FC) had a mental breakdown and had to be forcibly removed from the cockpit, restrained and sedated by two doctors on board. A flight attendant (CA) on board with flying experience, helped the captain (FC) to safely make an emergency landing with no injuries to anyone on board.
The Irish Air Accident Investigation Unit report on the incident, applauded the decision-making of the pilot (FC), and the cockpit skills of the flight attendant (CA), who stepped into the co-pilot's (FC) seat for the emergency diversion to Shannon Airport in western Ireland.
767-233 (22520), WFU at Marana. 777-233LR (35245, C-FIVK), delivery. A319-114 (649, C-FYJD), sold to SkyBus (SKS). E190 (0146, C-FNAQ) delivery. DHC-8-311 (342, C-FSOU), for (ACN) JAZZ.
February 2008: Air Canada (ACN) and Jazz flew a combined 4.06 billion (RPM)s passenger traffic in January, up +3.8% from the year-ago month. Capacity rose +3.7% to 5.22 billion (ASM)s, and load factor increased +0.1 point to 77.9% LF.
Air Canada (ACN) reported net income of +C$429 million/+$426.3 million for 2007, significantly turned around from a net loss of -C$74 million in 2006, crediting "an unrelenting focus on cost reduction" and the strength of the Canadian dollar for the strong result. The carrier also benefited from net gains on foreign currency monetary items of +C$317 million. "Our new revenue model continues to perform well," President & (CEO), Montie Brewer said, adding that (ACN)'s cost control "fundamentals" and "innovative" branding and pricing strategies, position it to "continue managing the impact of record high fuel prices." Revenue increased +4.8% to C$10.65 billion and operating income rose nearly fourfold to +C$433 million from +C$114 million in the prior year. Traffic escalated +3.3% to 50.63 billion (RPM)s on a +2.8% lift in capacity to 62.81 billion (ASM)s, producing a load factor of 80.6% LF, up +0.4 point. Yield improved +1.6% to C18.4 cents, as (RASM) increased +1.9% to C17 cents and (CASM) lowered -1.2% to C16.3 cents. (CASM), excluding fuel, fell -0.8% to C12.2 cents.
4th-quarter net income was +C$35 million, reversed from a -C$144 million loss in the year-ago period. Looking ahead, (ACN) projects capacity to grow +2.5% to +4% in 2008, and believes (CASM), excluding fuel, will drop slightly this year. Brewer told analysts and reporters that potential consolidation among USA majors could help (ACN). "In the short term, it will keep them distracted," he said.
Jazz, which provides regional service for Air Canada (ACN), reported net income of +C$150.7 million/$149.5 million for 2007, up +7.6% over a +C$140 million profit in 2006, on a +8.3% lift in revenue to C$1.5 billion. Expenses increased +8.5% to C$1.38 billion and operating income of +C$153.2 million was up +6.5% from +C$143.8 million in the previous year. 4th-quarter net income of +C$35.1 million was ahead +9.9% from +C$31.9 million in the year-ago quarter.
(ACN) and Jet Airways (JPL) announced a code share agreement effective February 28. (ACN) will place its code on Jet (JPL)'s flights from Mumbai to London Heathrow (LHR), and from Chennai to Toronto, while Jet (JPL) will place its code on (ACN) flights from (LHR) to Toronto, Vancouver, Calgary, Montreal, and Edmonton.
(ACE) Aviation Holdings, which owns a 20.1% stake in Jazz and 75% of (ACN)'s shares, reported net income of +C$1.4 billion for 2007. The company, which was created in 2004 as part of (ACN)'s restructuring and subsequently spun off (ACN) and Jazz as independent entities, said its results are not comparable to prior-year performances owing to its ongoing sale of assets.
Noting that it took delivery of 8 777s (5 777-300ERs and 3 777-200LRs) last year, and will receive 9 more by 2009, (ACN) said it will maintain "an advantage over our neighbors to the south" by offering N American passengers service aboard newer airplanes on long-haul flights. "Consolidation causes you to look inwardly for quite awhile, not outward," he said, predicting that merging carriers will be forced to put off major airplane orders "for another year or 2 and that helps us."
2 777-233LRs (35246, C-FNND; 35247, C-FNNH) and 2 E190s (0149, C-FNAW; 0151, C-FNAX), deliveries. A340-313 (088), returned to (ilf) for lease to Audeli Air Service as (EC-KOU).
March 2008: Air Canada (ACN) and Jazz flew a combined 3.81 billion (RPM)s passenger traffic in February, up +5.8% on the year-ago month. Capacity rose +6.3% to 4.81 billion (ASM)s, dropping load factor -0.4 point to 79.2% LF.
Air Canada (ACN) and WestJet (WJI) said the Canadian airline market has been insulated from the USA economic slowdown, that drove Delta Air Lines (DAL) and United Airlines (UAL) to announce domestic capacity cuts. "I've been waiting for the Canadian economy and the Canadian traffic to slow down," (ACN) President & (CEO) Montie Brewer said at a Toronto conference. Domestic demand is "still at a very healthy rate relative to the USA guys," he said. "Thus far, we've not seen any dramatic change in our booking levels" despite fare increases. "It's not doom and gloom," (WJI) President & (CEO), Sean Durfy said. "We're very fortunate that we have a duopoly in Canada and we have rational players in the marketplace." The USA market is "more insular," he said. But he warned that Canada's airlines may be unable to escape the effects of high fuel costs, if the per-barrel crude oil price remains >$100 for a prolonged period. Fuel is "expensive and it's going to be an issue, no doubt about it," he warned.
(ACN) will operate daily, Calgary - Newark from June 16, aboard an A319. It launched a code share arrangement with Jet Airways (JPL) under which (ACN) will place its code on Jet (JPL)'s flights from London Heathrow to Mumbai, and from Toronto to Chennai, via Brussels.
Jazz, Air Canada (ACN)'s regional partner, will add a 2nd daily, Toronto - Kansas City flight on June 15.
Kronos said Air Canada (ACN) Flight Operations selected its Altitude Manpower Planning solution featuring resource allocation intelligence, enhanced planning capabilities and various cost efficiency strategies.
Beijing Capital International Airport's new $3 billion-plus Terminal 3 opened as Shandong Airlines (SHG) (flight SC1151 arrived from Jinan at 8:39 am. UK architect Norman Foster claimed it is the largest covered structure ever built (3.25 km long and 1.3 million sq m of floor space). Construction began in March 2004. The airport said the 3-concourse facility welcomed Shandong (SHG), Sichuan Airlines (SIC), Qantas (QAN), Qatar Airways (QTA), British Airways (BAB), and El Al (ELA). A 2nd move is scheduled for March 26 when Air China (BEJ), Shanghai Airlines (SHA), (SAS), Austrian Airlines (AUL), Lufthansa (DLH), Asiana Airlines (AAR), (ACN), United Airlines (UAL), (ANA), Thai Airways (TII), Singapore Airlines (SIA), Finnair (FIN), Cathay Pacific Airways (CAT), Japan Airlines (JAL), Dragonair (DRG), Turkish Airlines (THY), Emirates (EAD), Air Macau (MCU), (S7) Airlines (SBR), and EgyptAir (EGP) will transfer to the new building. "Reuters" reported that airport capacity will be boosted to 76 million per year from the 52 million it served in 2007. The baggage system can handle 19,800 pieces per hour.
Later, Star Alliance (SAL) carriers Air Canada (ACN), Air China (BEJ), (ANA), Asiana Airlines (AAR), Austrian Airlines (AUL), (LOT) Polish Airlines, Lufthansa (DLH), (SAS) Scandinavian Airlines, Shanghai Airlines (SAL), Singapore Airlines (SIA), Thai Airways (TII), Turkish Airlines (THY), and United Airlines (UAL) each completed the transfer of their operations to Beijing International's Terminal 3. The move was part of the collocation plan developed as a result of Air China (BEJ) and Shanghai Airlines (SAL) joining the alliance last year. A similar collocation will be completed at Shanghai Pudong on April 29.
(BOC) Aviation (SIL) announced a sale/leaseback deal with Air Canada (ACN) covering two new 777-300ERs scheduled for delivery this month and next. Lease deals are for 12 years each.
777-333ER (35248, C-FIUV), delivery.
April 2008: Air Canada (ACN) and Jazz flew a combined 4.46 billion (RPM)s passenger traffic in March, up +3.7% from the year-ago month, against a +3.9% increase in capacity to 5.38 billion (ASM)s. Load factor slipped -0.1 point to 82.9% LF.
Air Canada (ACN) unveiled an a-la-carte service product via its website, intended to help customers manage travel disruptions such as weather, airport and Air Traffic Control (ATC) delays, not typically the responsibility of the airline. Customers who purchase the "On My Way" feature and experience a service disruption attributable to factors out of (ACN)'s control, receive "speedy phone access to specially trained Air Canada (ACN) customer service agents, who will provide travel and accommodation solutions." "We'll take care of you, if you need meal vouchers, hotels, car rentals," (CEO) Montie Brewer said at a Star Alliance (SAL) event in Vienna, adding that with "On My Way," "You're buying peace of mind." The price of the service, which is available on (ACN)'s North American network, is C$/$25 per segment for flights up to 1,000 miles/1,600 km, and C$/$35 per segment for longer flights. "We are using the sunny days to pay for the rainy days," Brewer summarized.
Mxi Technologies announced that Air Canada (ACN) agreed to implement its Maintenix management software throughout its fleet. Designed to automate maintenance and engineering processes, the technology is expected to be fully operational by 2010.
Regarding the "Open Skies" bilateral agreement between Australia and the USA, please read the attached - "ACN-AUS-USA-APR08."
777-333ER (35249, C-FIUW), delivery. 2 A319-112s (1756; 1765) sold to (TAP) Air Portugal, 1756 as (CS-TTR). A340-313X (175), leased to Swiss International Airlines (CSR) as (HB-JMN).
May 2008: Air Canada (ACN) and Jazz flew a combined 4 billion (RPM)s passenger traffic in April, up +0.8% from the year-ago month. Capacity climbed +0.4% to 4.83 billion (ASM)s, and load factor rose +0.4 point to 82.7% LF.
Air Canada (ACN) reported a 1St-quarter net loss of -C$288 million/-$287 million, a substantial increase over a -C$34 million loss in the year-ago period, blaming high fuel costs and charges associated with ongoing inquiries into potential antitrust violations in its cargo division. President & (CEO) Montie Brewer said Canada's growing economy and the strength of the nation's currency are driving demand, with advance bookings remaining "strong." But he added that "the increase in fuel prices has been unprecedented and the acceleration of these increases, combined with price volatility, presents an increasingly difficult challenge." As a result, (ACN) will "aggressively review all routes to determine if they are economically feasible."
Brewer noted that full-year 2008 capacity now is projected to grow +1% to +2.5% (ASM), down from (ACN)'s previous estimate of +2.5% to +4%. Service to Rome Fiumicino and Osaka Kansai will be suspended in the "late fall," allowing it to remove 4 767-200s from the fleet, he said.
Regarding the antitrust issue, (ACN) noted that the European Commission (EC), the USA Department of Justice, and Canada's Competition Bureau all are investigating the carrier as part of the wide-ranging probe into "alleged anticompetitive cargo pricing activities." (ACN) also is a defendant in a number of class-action suits filed in the USA and Canada relating to the allegations. It recorded a provision of C$125 million in the 1st quarter reflecting the money it is spending to contend with the probe and the lawsuits. It claimed results appear worse than they are, because of this provision.
1st-quarter revenue rose +7.5% to C$2.73 billion, and operating loss including the cargo provision, was -C$137 million, a +75.6% increase over a -C$78 million operating loss in the year-ago period. Excluding the cargo provision, operating loss was just -C$12 million.
Traffic lifted +4.4% to 12.33 billion (RPM)s on a +4.6% rise in capacity to 15.41 billion (ASM)s, producing a load factor of 80% LF, down -0.2 point. Passenger yield grew +2.2% to C18.7 cents as (RASM) improved +1.5% to C17.7 cents, and (CASM) was flat at C17.8 cents. (CASM) excluding fuel, lowered -4.8% to C13.1 cents.
(ACN) will "continue to aggressively cut costs," Brewer said, adding that ongoing initiatives are designed to slice an additional -C$100 million from its annual expenses.
(ACE) Aviation Holdings, as it reported a first-quarter net loss of -C$182 million/-$180 million, reiterated plans to close down the business, but cited difficulty in disposing of its 75% stake in Air Canada (ACN) and 20.1% stake in Jazz. This year's loss represented a +152.8% increase over a loss of -C$72 million in the year-ago period.
"Given fuel prices, the likelihood of something happening imminently with Air Canada (ACN) vis-a-vis a sale, is low," Chairman President & (CEO) Robert Milton said. "But we're going to continue to monitor the situation and keep all our options open." (ACE) has not decided how to dispose of its stake in (ACN), but high fuel prices have softened private equity firms' interest in a buyout.
The holding company, which was created in 2004 as part of (ACN)'s restructuring and which subsequently spun off (ACN) and Jazz as independent entities, is planning to wind down operations within the next 3 to 6 months, pending disposal of its assets. To that end, it announced plans to buy back C$500 million worth of its shares, a move that follows a C$1.5 billion buyback earlier this year.
(ACE) Aviation Holdings, which was created in 2004 as part of Air Canada (ACN)'s restructuring and subsequently spun off (ACN) and regional Jazz as independent entities, said that it has sold its remaining stakes in Aeroplan and Jazz as part of its plan to wind down operations within the next 3 to 6 months pending disposal of its assets. It sold 19.9 million Aeroplan shares for C$349.3 million/$351.7 million and 11.7 million Jazz units for C$85 million. It said it "retains no further interest" in either entity. It still owns 75% of (ACN), a stake it recently conceded it was having difficulty disposing of owing to record high jet fuel costs.
777-333ER (35351, C-FIVM), delivery.
June 2008: Air Canada (ACN) and Jazz flew 4.31 billion combined (RPM)s traffic in May, up +4.5% year-over-year. Capacity rose +4% to 5.17 billion (ASM)s, lifting load factor +0.3 point to 83.2% LF.
Air Canada (ACN), following the path of several USA counterparts, said it will cut total system capacity by -7% (RPM)s year-over-year in this year's fourth quarter and the 2009 first quarter and slash its workforce by -2,000. "I regret having to take these actions, but they are necessary to remain competitive going forward," President & (CEO) Montie Brewer said. "Air Canada (ACN), like most global airlines, needs to adapt its business and reduce flying that has become unprofitable in the current fuel environment. If fuel prices remain at current levels, we can anticipate further capacity reductions."
Every C$1/$0.97 increase in the per-barrel price of oil adds an estimated C$26 million to (ACN)'s annual fuel expense, (ACN) claimed. "Fuel is the carrier's single largest expense item, accounting for >30% of total operating expense, and at current price levels will cost (ACN) close to C$1 billion more in 2008 than in 2007."
At current fuel prices and capacity levels, (ACN) said it spends an average of C$230 in fuel to carry one passenger on a roundtrip journey, up from C$146 in 2007, and C$110 in 2004.
In the 6-month period beginning October 1, (ACN) plans to reduce domestic capacity by -2% (ASM)s, USA transborder capacity by -13% and international capacity by -7%. It will suspend Toronto - Rome Fiumicino and Vancouver - Osaka flights from October 26. It now expects full-year 2008 capacity to range from a -1% decrease to a +1% increase, down from the +2.5% full-year (ASM) increase previously projected.
Toronto Pearson will reduce cargo landing fees by -25% effective January 1. The airport handles >500,000 tonnes of freight per year.
(ASIG) reached agreement with (ACN) to provide ramp and cabin cleaning services at Tampa International. (ASIG) also provides (ACN) with fueling.
777-333ER (35250, C-FRAM), delivery.
July 2008: Air Canada (ACN) and Jazz Air flew 4.58 billion (RPM)s traffic in June, a +1.9% increase year-over-year, while (ASM)s climbed +2.7% to 5.57 billion. Load factor dipped -0.6 point to 82.2% LF.
1st 6 months Latin America traffic = +22% (RPM)s, on +18% capacity (ASM)s.
(ACTS) Aero Technical Support & Services, the former (ACN) Technical Services, is laying off -650 (MT) workers in response to declining Maintenance Repair & Overhaul (MRO) demand from Air Canada (ACN), the "Canadian Press" reported. According to the news service, the reductions will affect 250 fulltime employees and 400 others. Last month, (ACN) announced it will cut total system capacity by -7% year-over-year in this year's 4th quarter and the 2009 1st quarter.
(ACN) will lay off -632 flight attendants (CA), or -9% of its cabin staff, and close its flight attendant bases in Halifax and Winnipeg by November 1, a spokesperson told "Reuters." Remaining layoffs will be from Vancouver. The cuts are part of the wide-ranging reductions that (ACN) announced last month.
(ACN) named Jazz Air Senior VP & (COO) Bill Bredt as Executive VP & (COO).
August 2008: Air Canada (ACN) and Jazz flew a combined 5.02 billion (RPM)s traffic in July, down -0.6% year-over-year, against a -2% fall in capacity to 6.05 billion (ASM)s. Load factor rose +1.2 points to 83% LF.
1st 6 mths = 37.2 billion (RPK)s traffic - see "ACN-08TOPWLD6MTHSRPK."
Air Canada (ACN) reported 2nd-quarter net income of +C$122 million/+$116.4 million, down -21.3% from +C$155 million in the year-ago period, blaming the earnings drop on a "difficult industry environment created by unrelenting high fuel prices." President & (CEO) Montie Brewer called the result "solid," given the economic conditions and noted that a "resilient domestic Canadian market drove sustained revenue growth and we achieved unit growth through the successful introduction of a number of fare increases and fuel surcharges." He also credited "containing controllable costs" with preventing a steeper profit dip. (ACN) will take a measured approach to growth for the remainder of the year with full-year capacity projected to be essentially flat.
2nd-quarter revenue rose +5.3% to C$2.78 billion but operating income plunged -92% to +C$7 million from +C$88 million last year. (ACN) did not report total expenses but did note that fuel costs were +C$212 million higher than in the prior-year quarter. Traffic grew +2.4% to 12.88 billion (RPM)s, on a +2.4% rise in capacity to 15.58 billion (ASM)s, producing a load factor of 82.7% LF, unchanged from last year. Yield lifted +2.5% to C19 cents, as (RASM) rose +3% to C17.9 cents, and (CASM) climbed +6.3% to C17.8 cents. (CASM), excluding fuel, lowered -1.7% to C12.4 cents.
(ACE) Aviation Holdings, which was created in 2004 as part of (ACN)'s restructuring and subsequently spun off (ACN) and regional Jazz as independent entities, reported net income of +C$830 million for the quarter, a more-than-sevenfold increase over +C$118 million last year, largely attributable to the divestiture of its remaining stakes in Aeroplan and Jazz during the quarter. (ACE), which is endeavoring to wind down operations, still holds a 75% stake in (ACN). Chairman President & (CEO) Robert Milton said it is "actively exploring options" for disposing of the stake, which he has said has been difficult to sell owing to the high-fuel-cost environment.
(ACN) posted a 6-month net loss of -C$166 million, reversed from a +C$121 million profit in the 2007 first half, despite a +6% rise in revenue to +C$5.51 billion.
(ACN) benefited from fuel hedges and new airplanes, but costs have been rising faster than revenues.
Air Canada (ACN) agreed to distribute its products—including flight passes and a la carte traveler options, through the Farelogix platform that many travel agents and corporate travel managers use to enhance their booking capability. Farelogix aggregates travel content from all the major Global Distribution System (GDS) companies, as well as more direct sources like suppliers themselves. With airlines relying more than ever on ancillary products and a la carte pricing, the mechanics of how to make those bookable at agencies is a hot topic in distribution circles. Airlines, for their part, want to ensure that enabling this isn’t too costly and doesn’t divert bookings from their own websites.
Air Canada (ACN) signed up for in-flight Internet, though just on USA transborder A319 flights initially. (ACN) will install Aircell’s Gogo system, which creates an in-flight, wireless hotspot throughout the airplane. Aircell, which also provides (or will soon provide) inflight connectivity for American (AAL), Delta (DAL), and Virgin America (VUS), hopes to build a network within Canada as well. When it does, (ACN) will be able to offer Internet access on domestic flights.
Air Canada Technical Services (ACTS) and (GE) signed a Memo of Understanding (MOU) recognizing (ACTS) Engine Maintenance Center as a (GE) fulfillment center for engine Maintenance Repair & Overhaul (MRO) and on-wing and diagnostic services for (CFM56-2/-3/-5A) and (CFM56-5C) operators in the Americas.
(ACN) named Claude Morin, currently President & (CEO) of Air Canada Cargo VP-Global Sales, effective September 1, replacing the retiring Marc Rosenberg. Senior Director Cargo Services Americas/South Pacific, Lise-Marie Turpin will be promoted on September 1 to General Manage, Air Canada Cargo, a position that will include responsibility for all aspects of the airline's cargo activities.
September 2008: Air Canada (ACN) and Jazz flew 5.18 billion (RPM)s traffic in August, down -1.5% year-over-year. Capacity fell -2.2% to 6.14 billion (ASM)s, and load factor rose +0.6 point to 84.4% LF.
October 2008: Air Canada (ACN) and Jazz flew a combined 4.26 billion (RPM)s traffic in September, down -5% year-over-year. Capacity fell -6.4% to 5.33 billion (ASM)s, lifting LF +1.2 points to 79.9% LF.
Air Canada (ACN) is to start operations from Vancouver to Ft McMurray, Alberta. (ACN) will operate 2x-weekly, Halifax - Orlando International from February 6 to May 10 with A319s and E190s.
November 2008: Air Canada (ACN) and Jazz flew 3.9 billion combined (RPM)s traffic in October, down -3.9% from the year-ago month. Capacity fell -5.9% to 4.86 billion (ASM)s, lifting load factor +1.6 points to 80.2% LF.
(ACN) posted a 3rd quarter loss because of expenses tied to jet fuel contracts and currency exchange, after analysts had expected a profit. Their shares fell the most in 4 months. The net loss was -C$132 million/-$111 million, compared to a net profit of +C$273 million a year earlier. Revenue rose +4.1% to C$3.08 billion. Shares fell -16%. (ACN) said it will cut -2,000 jobs, shrink USA seating capacity (ASM)s, and pare routes to Europe and Asia after a 1st half net loss of -C$166 million.
1st 9 months = 58.74 billion (RPK)s traffic (+1.6%).
The Australian Competition and Consumer Commission (ACCC) rejected a transpacific Air New Zealand (ANZ)/Air Canada (ACN) code share pact. The (ACCC) issued a draft determination denying authorization for the two airlines to code share on (ACN)'s Sydney - Vancouver services and (ANZ)'s Auckland - Vancouver flights, claiming it would lessen competition. The airlines argued that neither operates on the other's routes and both would promote each other's services, bringing more tourists to Australia and New Zealand.
Air New Zealand (ANZ) called Australia's competition watchdog "inconsistent" following the preliminary rejection of its proposed code share with Air Canada (ACN) on transpacific routes. (ANZ) Group General Manager International Airline, Ed Sims called on the Australian Competition and Consumer Commission (ACCC) to "demonstrate consistency when making a final ruling on its application for a Cooperation Agreement with (ACN)." The proposed agreement involves the 2 airlines jointly promoting and selling direct flights between Sydney and Vancouver (operated by (ACN)) and Auckland and Vancouver (operated by (ANZ)). "As the (ACCC) noted, there are already 4 main carriers on the route," Sims said. "As evidenced around the world, wherever there are two or more carriers, competition is intense and consumers benefit through low fares and a choice of frequency, not to mention a variety of product offerings. Therefore, we are struggling to understand how the (ACCC) has formed its preliminary view."
(ACN) will launch daily, Montreal - Geneva flights June 1 aboard a 767-300ER. Swiss International Air Lines (CSR) will code share.
December 2008: Air Canada (ACN) and Jazz flew a combined 3.22 billion (RPM)s traffic in November, down -5.2% year-over-year. Capacity fell 07.5% to 4.15 billion (ASM)s, and load factor rose +1.9 points to 77.6% LF.
(ACN) reached agreement with Aeroplan to "accelerate" approximately C$70 million/$56.4 million in payments by December 31 for reward tickets issued for travel through May 29, helping (ACN) boost near-term liquidity.
(ACE) Aviation Holdings, which was created in 2004 as part of Air Canada (ACN)'s restructuring and still holds a 75% stake in (ACN), revealed plans to use C$811 million/$644 million in cash reserves to purchase all of its outstanding convertible shares and senior notes, allowing it to seek shareholder approval for liquidation. The dissolution of (ACE) long has been planned by Chairman President & (CEO) Robert Milton and paves the way for (ACN) to become a fully publicly traded company for the first time since its 2003 to 2004 reorganization. "We believe there are many benefits to becoming an independent company," (ACN) President & (CEO) Montie Brewer said. "(ACN)'s shares are now free to trade based on the airline's fundamentals without the impact of the (ACE) overhang and with the benefit of a greater public float."
(ACE) said that a court-appointed liquidator "will proceed with the distribution of (ACE)'s net assets, including its shares in (ACN), in an orderly fashion." An (ACE) shareholder meeting has been scheduled for February to approve the dissolution. (ACN) will not receive any cash from the (ACE) windup process.
(ACN) will launch daily, seasonal Montreal (YUL) - Rome Fiumicino service on June 20 aboard a 767-300ER. (ACN)'s summer transatlantic capacity from (YUL) will be up 35% year-over-year with flights to 5 European cities.
(ACN) secured a 5-year, $78 million loan from Calyon New York Branch and Norddeutsche Landesbank Girozentrale.
January 2009: Air Canada (ACN) and Jazz flew 3.28 billion (RPM)s traffic in December, down -6.6% from the year-ago month. Capacity fell -9.9% to 4.56 billion (ASM)s, lifting load factor +2.9 points to 81.7% LF.
Air Canada (ACN) boosted its liquidity with a series of financial agreements in late December. It arranged a five-year, $78 million loan from Calyon New York Branch and Norddeutsche Landesbank Girozentrale and secured a revolving credit facility with the Canadian Imperial Bank of Commerce, which agreed to provide (ACN) with up to C$100 million/$82.9 million of revolving credit for 1 year. (ACN) said it drew C$50 million from the facility upon closing.
(ACN) also concluded a series of agreements for secured financings with General Electric Capital Corporation (GEC) and its affiliates, providing the airline with up to $195 million. Under the agreements, $80 million was funded as the first of two tranches of a loan agreement that would provide (ACN) with $155 million. The loan matures in 2014. The second tranche of the secured loan is expected to close by the end of this month. Funding of the 2nd tranche as well as retention of the funded 1st tranche are subject to conditions that include the sale and leaseback of a 777-300ER with (GECAS) (GEF). The lease term is 12 years and the deal will provide (ACN) with at least $40 million in additional financing.
(ACN) announced a tentative 3-year labor deal covering approximately 5,000 customer service and sales employees represented by the Canadian Auto Workers. (ACN) President & (CEO) Montie Brewer said that all of (ACN)'s labor agreements are up for renewal this year.
(ACN) plans to lay off or furlough 345 flight attendants (CA) starting in March. The Canadian Union of Public Employees, which represents the cabin staff, confirmed the cuts that will come on top of the -600-plus flight attendant (CA) positions cut by (ACN) last year. An (ACN) spokesperson told "The Globe and Mail," "The expectation is that the layoffs will be temporary" and may be rescinded if demand increases during the summer. (ACN) plans to reduce the number of flight attendants (CA) in transatlantic business class (C) from 3 to 2.
Air Canada (ACN), Jazz Air, WestJet (WJI) and Air Transat AIJ) announced formation of the National Airlines Council of Canada (NACC), a new trade association "focused on promoting public policy and legislation favorable to the global success of the Canadian commercial airline industry." (WJI) President & (CEO) Sean Durfy will be the (NACC) board's 1st Chairman. The airlines left the Air Transport Association of Canada last year.
The Australian Consumer and Competition Commission (ACCC) announced a final rejection of plans by Air New Zealand (ANZ) and Air Canada (ACN)'s transpacific code share operation that included (ACN)'s Vancouver - Sydney service. "The outcome is in stark contrast to trends in Europe, USA and Asia, where airlines are increasingly consolidating in response to toughening economic conditions dramatically affecting the industry. It also contrasts with approvals gained by Qantas (QAN) in respect of collaboration with South African Airways (SAA) and Japan Airlines (JAL) on routes with equivalent levels of competition." (ACCC) Chairman Graeme Samuel said the body "can authorize such an agreement where it meets a public benefit test, but the (ACCC) considers that the test has not been met here."
Nav Canada introduced ADS-B coverage over the Hudson Bay, eliminating "an 850,000-sq-km gap in Canada's radar coverage," the air navigation services provider said. The 1st use of (ADS-B) involved an Air New Zealand (ANZ) January 15 flight from London Heathrow to Los Angeles. Sensis Corporation is supplying Nav Canada with ground equipment consisting of an antenna, a receiver and a target processor installed at stations along the Hudson shoreline. To use (ADS-B) airspace, airplanes require the proper avionics and operators must have Transport Canada approval before Nav Canada can accept their downlinked (ADS-B) data. "(ADS-B) promises more efficient use of Hudson Bay airspace for some 35,000 flights a year, with significant savings in fuel costs, flight times and greenhouse-gas emissions."
Aveos Fleet Performance, formerly Air Canada Technical Services (ACTS), extended its agreement with (ACN) for maintenance services on (CFM56-5A)s and (CFM56-5B)s through the end of 2018. AerCap Holdings (DEA) subsidiary, AeroTurbine (AUB) will supply Aveos (formerly (ACTS) Air Canada Technical Services) with engine and airframe components under a five-year lease agreement. The contract calls for acquisition and leasing of certain A320 and 737 rotables as well as additional inventory for Aveos to position at various locations worldwide. Under a separate five-year deal, Aveos will provide (AUB) with Maintenance Repair & Overhaul (MRO) on (CFM56-2)s, (CFM56-3)s and (CFM56-5)s.
February 2009: Air Canada (ACN) and Jazz Air flew 3.71 billion consolidated (RPM)s traffic in January, a -8.5% drop from the year-ago month. Capacity declined -8.8% to 4.75 billion (ASM)s and load factor rose +0.2 point to 78.1% LF.
(ACN) reported a 2008 net loss of -C$1.03 billion/-$827.6 million, reversed from a profit of +C$429 million in 2007, citing "unprecedented volatility on fuel prices, significant fluctuations in foreign exchange and a worsening global economy." The Canadian dollar, which provided (ACN) a boost when it was on par with the USA dollar in 2007 and early 2008, dropped rapidly in the 4th quarter, driving a net loss on foreign exchange of -C$655 million last year. (ACN) posted a +C$317 million net gain on foreign exchange in 2007. "Foreign exchange turned against us," President & (CEO) Montie Brewer told analysts. Brewer said (ACN) will target additional cost reductions of -C$120 million in 2009 to counter a weak revenue environment. Savings will be achieved "through company wide cost reduction initiatives including ongoing fuel efficiency improvements and a supplier concession program." He insisted (ACN) is "well positioned" for an economic recovery and noted it ended 2008 with >C$1 billion in cash and cash equivalents. He added that (ACN) expects "the decline in revenue [in 2009] to be more than offset by the decline in fuel prices."
(ACN) plans to cut capacity -2.5% to -3.5% year-over-year this year and warned that "a continuing recession is expected to place significant pressure on (ACN)'s passenger and cargo revenues." Full year 2008 revenue rose +4% to C$11.08 billion and operating loss was -C$164 million, reversed from an operating profit of +C$433 million in 2007. Traffic dipped -0.2% to 50.52 billion (RPM)s on a -1.2% decline in capacity to 62.07 billion (ASM)s, producing a load factor of 81.4% LF, down -0.8 point. Yield rose +4.3% to C19.2 cents as (RASM) lifted +5.3% to C17.9 cents and (CASM) heightened +10.2% to C17.9 cents. (CASM) excluding fuel increased +1.7% to C12.4 cents.
4th-quarter net loss was -C$727 million, in large part reflecting a net deficit on foreign exchange of C$527 million in the period, reversed from a +C$35 million profit in the 2007 4th quarter.
(ACN) and Jazz Air said that they reached agreement on "new rates for controllable costs" to be paid by (ACN) to Jazz as part of the capacity purchase accord under which the regional operates flights on behalf of the flag carrier. The rates, which were not disclosed, are retroactive to January 1 and will extend to the end of 2011.
Additionally, (ACN) announced that it concluded a secured financing transaction valued at $37 million with Norddeutsche Landesbank Girozentrale (NLG) that increases a previously announced facility for $78 million with Calyon New York Branch and (NLG). It also completed the second tranche of a series of agreements for secured financings with (GE) Capital for $80 million related to the sale and leaseback of a 777-300ER.
(ACN) and Aeroplan customer service employees and sales agents represented by the Canadian Auto Workers (CAW) union rejected a tentative labor agreement reached in mid-January by a 78% margin. The current deal expires May 31. (CAW) represents approximately 5,000 (ACN) employees. (CAW) National President, Ken Lewenza said members were frustrated as (ACN) "has been allowed to sell off its most profitable segments to the detriment of the core business."
(ACN) will launch daily service from Calgary to San Diego (May 15, aboard a Jazz Air CRJ700), London, Ontario (June 1 aboard an E190), Portland, Oregon (June 15 aboard a Jazz CRJ-100/CRJ-200 and Whitehorse (seasonal from June 1 aboard a Jazz CRJ700).
Canada and Costa Rica signed an expanded air services agreement allowing carriers to operate their own airplanes or code share flights between any city-pairs.
767-233 (22517, C-GAUB), WFU at Montreal and scrapped. 777-333ER (35241, C-FIVR), delivery. A340-313X (273) to Air Asia X (ASX) as (9M-XAB).
March 2009: Air Canada (ACN) and Jazz flew a combined 3.41 billion (RPM)s traffic in February, a -10.5% decrease from the year-ago month. Capacity fell -11% to 4.28 billion (ASM)s, lifting load factor +0.4 point to 79.6% LF.
Korean Air (KAL), Asiana Airlines (AAR), Singapore Airlines (SIA) and Air Canada (ACN) began rerouting flights that normally pass through N Korean airspace after Pyongyang said it was "compelled to declare that security cannot be guaranteed for S Korean civil airplanes flying through the territorial air of our side." (KAL) and (AAR) began rerouting an estimated 15 daily flights that approach S Korea from the east to new flight paths that take airplanes over Japan, adding an estimated 40 minutes and $2,500 in operational costs to each flight. S Korea's Unification Ministry estimated that 33 flights pass through N Korean airspace daily, 18 of which are operated by non-Korean airlines.
N Korea has allowed commercial flights to pass through its airspace since 1998, after >40 years of prohibiting civil flights. According to JoonAng Daily, South Korean carriers submit flight plans to N Korea for each flight that will pass through its airspace and the nation collects an average of $870 for each. The Unification Ministry said 5,260 flights per year use the route, adding that S Korean carriers annually pay nearly $4 million to Pyongyang for airspace access. N Korea's threat was condemned widely. "The military threat against normal operation of civilian airliners under international aviation protocols is in violation of international norms and is inhumane," S Korea's government said in a statement. "It can never be justified under any circumstance. The S Korean government urges the North to withdraw its military threat as soon as possible." The USA called the threat "a provocation and unacceptable." Tensions are high on the peninsula, with N Korea stating that it plans to conduct missile tests and S Korea and the USA planning to conduct annual military exercises this week that Pyongyang condemns. The USA and S Korea said they plan to carry forward with the exercises that N Korea cited as the reason for its threat against airlines.
Unisys extended contracts with Air Canada (ACN) under which the airline will continue using its Hosting & Integration Services (HIS) and Cargo Portal Services (CPS)programs for cargo operations through 2015 and 2011 respectively. The (HIS) contract entails Unisys hosting (ACN) on its Logistics Management System at its data center in Minneapolis. (CPS) is an Internet portal that brings together a range of carriers and forwarders in a neutral on line forum.
(ACN) and (GECAS) (GEF) completed the sale and 12-year leaseback of one 777-300ER. The deal is worth $38 million to (ACN).
April 2009: Air Canada (ACN) and Jazz flew a combined 3.86 billion (RPM)s traffic in March, a -13.5% decline from the year-ago month. Capacity fell -11.1% to 4.79 billion (ASM)s and load factor was down -2.2 points to 80.7% LF.
Canada and Japan announced an expanded air services agreement that will grant Canadian airlines unlimited access to cities outside Tokyo and offers access to Haneda "under certain conditions," Transport Canada said.
Reeling from a -C$1.03 billion/-$824.3 million loss in 2008 and facing worker discontent over a growing pension shortfall and the pending dissolution of parent company (ACE) Aviation Holdings, Air Canada (ACN) announced a front office restructuring and the resignation of President & (CEO) Montie Brewer. He will be succeeded by Calin Rovinescu, who was an (ACN) executive from 2000 to 2004 before joining Genuity Capital Markets, a Canadian investment bank. "I am very proud of the (ACN) team for its accomplishments over the past 4 years positioning (ACN) as an industry leader in product innovation. It has been an honor to lead this great airline and I am confident Calin is the right person to take the company forward at this time," said Brewer, who joined (ACN) as an Executive VP in 2002 and was elevated to the top spot in 2004. The airline won Air Transport World (ATW)'s "Market Leadership" Award in 2007.
(ACN) Chairman David Richardson said Rovinescu is a "proven leader and his wealth of experience in corporate strategy will serve (ACN) well during this particularly challenging period for the world's airline industry." In his previous stint at (ACN), Rovinescu served as Executive VP Corporate Development & Strategy and as Chief Restructuring Officer. Earlier he was an attorney.
In addition, (ACN) appointed Duncan Dee as Executive VP & (COO), effective April 3, succeeding the retiring Bill Bredt. Dee has been at the airline since 1997 and most recently served as Executive VP Customer Experience & Chief Administrative Officer.
Calin Rovinescu's appointment as President & (CEO) of (ACN), succeeding Montie Brewer, who has resigned, drew a rebuke from (CAW) union President, Ken Lewenza, who called Rovinescu "a disturbing choice."
(CAW) represents >5,000 customer service and sales workers at (ACN). Rovinescu served as Executive VP Corporate Development & Strategy at (ACN) between 2000 and 2004, and was a key figure in (ACN)'s 18-month bankruptcy reorganization as Chief Restructuring Officer. He has been involved with Canadian commercial aviation for more than two decades. "It is hard to understand that (ACN) would bring back someone who headed up the last restructuring attempt, when it is very clear those efforts not only failed, but also helped create the financial turmoil currently plaguing the company," Lewenza said.
Katherine Thompson, who heads the (ACN) component of the Canadian Union of Public Employees (CUPE), was more conciliatory, noting that the new (CEO) has a history with the company and an ability to broker deals that is "well-regarded in financial circles." She added, "While these abilities will be essential given the challenges that our industry is facing, there are other equally important changes that need to take place if we are to return to profitability and regain our rightful position as one of the world's leading airlines for customer service." (CUPE) represents >5,700 (ACN) flight attendants (CA).
Rovinescu's appointment engendered widespread media speculation that (ACN) is preparing for a 2nd reorganization. The 1st began on April 1, 2003, and was precipitated by the (SARS) epidemic that eviscerated traffic. (ACN) said it shed -C$2 billion/$1.59 billion in costs under Canada's Companies Creditors Arrangement Act (CCAA), of which an estimated C$750 million came from employee wage and benefit reductions and changes to work rules. It also reduced staff by about -10,000 compared to the beginning of 2003 through voluntary separations and layoffs. Unlike several USA airlines, it did not terminate its pension plans and its estimated C$3.2 billion in unfunded pension obligations loom large as it seeks a way forward. Under the (CCAA), (ACN) adopted a holding company structure under which it became a subsidiary of (ACE) Aviation Holdings. (ACE) subsequently spun off its regional subsidiary Jazz, its maintenance organization and the Aeroplan loyalty program (the 1st monetization of a frequent-flier program). (ACN) stock had fallen -16% to -19% during recent trading, according to press reports.
(ACN) and (TAP) Portugal announced a code share agreement under which (TAP) will place its code on (ACN) flights between Canadian cities and international gateways including Newark, London Heathrow and Madrid. (ACN) will place its code on (TAP) flights from Lisbon and Porto to the same gateways. "Both carriers will thus offer services between Portugal and Canada, via selected connecting points, each one using its own code throughout the entire itinerary."
May 2009: Air Canada (ACN) and Jazz flew a combined 3.83 billion (RPM)s traffic in April, a -4.1% decline from the year-ago month. Capacity dropped -2.2% to 4.73 billion (ASM)s, lowering load factor -1.6 points to 81.1% LF.
(ACN) reported a 1st-quarter net loss of -C$400 million/-$342 million, widened -38.9% from a -C$288 million loss in the year ago period, and new President & (CEO) Calin Rovinescu said (ACN) is urgently seeking relief from its pension funding obligations.
On the job for 5 weeks and already receiving criticism from (ACN)'s unions, Rovinescu told shareholders at the company's Annual General Meeting (AGM) in Montreal, that it has a "pressing need to achieve an alternate pension funding solution." He noted that (ACN) has around 25,000 employees and 25,000 retirees and has made C$1.7 billion in pension payments since 2004. It has a C$2.9 billion pension funding solvency deficit and has asked unions for a funding "moratorium."
He said Ottawa "realizes there is a problem" and is undertaking a review of Canada's strict pension laws. But changes likely won't come until late this year at the earliest and "in the interim we require more immediate action," he insisted.
Rovinescu also told shareholders that "liquidity will continue to be a prime concern" and said (ACN) is actively seeking new sources of financing. It currently has C$1.1 billion cash on hand but wants to build a cash reserve "closer to 15% of revenue." Based on 2008 revenue of C$11.08 billion, it is aiming to boost liquidity to around C$1.7 billion.
Rovinescu suggested that the carrier had gone too far in imposing fees that are not "customer friendly." Since his ascension, for example, it has rescinded call center booking fees and instituted a "low fare guarantee" for booking domestic and transborder tickets on its website. It will provide a C$50 travel credit plus the fare difference if a customer finds a cheaper fare in the same class for the given (ACN) flight through another outlet within 24 hours of purchasing. "Expect many more" such initiatives, he said.
1st-quarter revenue fell -12.5% to C$2.39 billion, while expenses lowered -5.8% to C$2.58 billion, producing an operating loss of -C$188 million, significantly widened from a -C$12 million operating loss last year. Traffic decreased -10.9% to 10.98 billion (RPM)s on a -10.3% cut in capacity to 13.82 billion (ASM)s, producing a load factor of 79.5% LF, down -0.5 point.
Passenger yield dropped -2.3% to C18.2 cents as (RASM) dipped -2.3% to C17.3 cents and (CASM) heightened +5% to C18.7 cents. (CASM) ex-fuel rose +9.4% to C14.4 cents.
June 2009: Air Canada (ACN) and Jazz flew 3.86 billion (RPM)s traffic in May, a -10.3% drop year-over-year. Capacity fell -6.1% to 4.86 billion (ASM)s and load factor slipped -3.7 points to 79.5% LF.
(ACN) launched daily, Montreal - Geneva service aboard a 767-300ER. Swiss International Air Lines (CSR) is code sharing. (ACN) also began daily flights from Calgary to Whitehorse and London, Ontario, aboard a CRJ700 and an E190, respectively. (ACN) launched daily, Calgary - Portland, Oregon, service. (ACN) launched daily, Montreal - Rome Fiumicino flights aboard a 767-300ER. The service becomes 3x-weekly on October 27.
(ACN) said it reached tentative agreements on a "21-month pension funding moratorium and collective agreement extension" with three of its five unions representing more than 60% of its unionized workers that stand to gain an "equity stake" in the airline. Around 16,500 employees represented by the Canadian Auto Workers, the International Association of Machinists and Aerospace Workers and the Canadian Airlines Dispatchers Association would be covered by the tentative deal aimed at providing relief that (ACN) insists it urgently needs.
President & (CEO) Calin Rovinescu has said (ACN) will have difficulty meeting its C$2.9 billion/$2.6 billion pension funding solvency deficit, but the airline's unions had rejected management's request for a funding "moratorium." Canadian Finance Minister, Jim Flaherty recently appointed a mediator to try to resolve the pension funding dispute. The tentative deal does not include the Air Canada (ACN) Pilots Association representing (ACN)'s 3,000 pilots (FC) or the Canadian Union of Public Employees representing 7,000 flight attendants (CA). The Air Canada Pionairs, which serves but has no binding influence over 15,000 (ACN) retirees, also signed the tentative agreement.
Later, (ACN) and flight attendants (CA) represented by the Canadian Union of Public Employees reached agreement on a 21-month labor agreement extension, finalizing the carrier's effort to secure "labor stability" and pension relief from its workforce. "These tentative agreements will allow us to move forward to the next milestones obtaining the necessary governmental measures and approvals for the pension funding arrangement and raising new financing. Discussions are ongoing with several potential lenders," (ACN) President & (CEO) Calin Rovinescu said.
(ACN) announced tentative agreements on its 21-month pension funding moratorium with some 3,200 pilots (FC) represented by the Air Canada Pilots Association and approximately 6,700 flight attendants (CA) represented by the Canadian Union of Public Employees (CUPE), giving the airline the consent of all five Canadian unions and allowing it to move forward with its effort to seek new funding. (ACN) also agreed to extend its labor agreements with all unions except (CUPE) for 21 months, assuring there will be no wage or pension benefit changes. The agreements are conditional upon (ACN) and flight attendants (CA) reaching a similar deal. (ACN) President & (CEO) Calin Rovinescu called the accords "critically important steps that will enhance (ACN)'s ability to obtain additional financing to manage through the recession. Discussions are ongoing with several potential lenders who are assessing our financing needs." The pension agreements call for a moratorium on past service contributions for 21 months and payments of C$150 million/$133 million, C$175 million and C$225 million in 2011, 2012 and 2013, respectively. They are subject to union and (ACN) approval and the airline raising at least C$600 million in new financing. The Canadian government will participate, according to press reports. A 15% stake in the company will be transferred to an employee trust, the sale of which will help alleviate the pension plan deficit.
Travelport Global Distribution System (GDS) announced the launch of Travelport Agencia, an "industry-1st" Web application used by (ACN) that will allow Galileo-connected travel agents to sell (ACN)'s full content. Travelport Agencia will enable agencies to display and book all (ACN) fare families with real-time access to price and availability in addition to (ACN)'s a la carte offerings, the company said. Travelport (GDS) said it introduced "a travel industry merchandising first and technology leap forward for Air Canada" with the full market launch of Travelport Agencia, a travel booking solution that delivers access to the complete portfolio of (ACN)'s a la carte product "in a seamless manner" to users of Travelport's Apollo (GDS). Travelport Agencia enables travel agencies not only to display and book all of (ACN)'s fare families but also to book any service from (ACN)'s a la carte menu such as lounge access, prepaid on board food vouchers, checked baggage and advance seat assignment.
July 2009: Air Canada (ACN) and Jazz flew 4.17 billion (RPM)s in June, a -9.1% drop year-over-year, against a -7.6% cut in capacity to 5.15 billion (ASM)s. Load factor slipped -1.3 points to 80.9% LF.
Gains on foreign exchange of C$355 million pushed (ACN) into the black in the second quarter, for which it reported net income of +C$155 million/+$144.5 million, up +33% over a +C$122 million profit in the year-ago period. But (ACN) reported a -C$113 million operating loss, reversed from a +C$7 million operating profit in the year-ago period, citing "reduced air travel demand, particularly high-yield traffic, due to the weakened economy and competitive pricing initiatives to stimulate demand." President & (CEO) Calin Rovinescu touted recent agreements that will raise liquidity by C$1 billion, as well as a 21-month pension funding moratorium agreed to by its unions, saying the measures give the carrier "an adequate level of stability" and "breathing room."
However, he told analysts and reporters that the company's "cost structure needs to be more flexible and substantially lower" and "we need to find new ways to generate revenue." To that end, (ACN) announced that it is targeting C$500 million in annual revenue improvement/cost reduction by 2011, double its previous target, including a -C$400 million cut in yearly costs.
Rovinescu said that "new liquidity provides us a window of opportunity to make necessary structural changes. Everything will be thoroughly evaluated over the next short, while with a sense of urgency. Nothing will be overlooked. This includes routes, schedules, fleet, supplier relationships and all our revenue activity." (ACN) revealed that it took a C$67 million impairment charge in the second quarter related to (ITA) Software's Polaris reservations system, saying it "has suspended activity relating to the implementation of the reservation system."
It also slightly lowered its capacity outlook for 2009, saying that (ASM)s will be down -4.5% to -5.5% compared to 2008 instead of -4% to -5%, as previously planned. It said it expects that "the North American economy will remain weak for the remainder of 2009."
2nd-quarter revenue declined -16.2% to C$2.33 billion. Traffic fell -7.9% to 11.86 billion (RPM)s on a -5.4% cut in capacity to 14.74 billion (ASM)s, producing a load factor of 80.5% LF, down -2.2 points. Yield dropped -8.9% to C17.3 cents as (RASM) lowered -11.4% to C15.8 cents and (CASM) dipped -7% to C16.6 cents. (CASM) ex-fuel rose +2.6% to C12.7 cents.
(ACN) will operate seasonal weekly, Montreal - Martinique flights using A319s through August 29. (ACN) will restart the service as year-round on December 5.
(ACN) said technical, maintenance and operational support (MT) employees represented by the International Association of Machinists and Aerospace Workers (IAMAW) rejected the tentative pension funding moratorium and contract extension agreement reached last month by a 50.8% margin. Clerical and finance workers ratified by 93.2% and 87.7% margins respectively. (ACN) and the (IAMAW) "will meet promptly to discuss next steps," (ACN) said.
(ACN) said it received approval from retirees, managers and administrative, technical and support employees for a 21-month moratorium on pension fund contributions and fixed payments for the 2011 to 2013 period similar to the deals ratified previously by its five Canadian unions.
(ACN) and Jazz Air signed a Memo of Understanding (MOU) modifying their capacity purchase agreement. (ACN) said the new accord will "provide us with reduced capacity purchase costs that are more consistent with market realities and will allow us to enjoy greater flexibility in our fleet deployment." Highlights of the revised agreement include a reduction in the mark-up rate paid to Jazz on the first 375,000 block hours of flying from 16.7% to 12.5%; a reduction in (ACN)'s commitment to Jazz's minimum fleet from 133 airplanes to 125; an extension of the capacity purchase arrangement to December 31, 2020, and "a commitment to work together" on Jazz's turboprop fleet renewal.
(ACN) announced that it has reached agreements to raise C$1.02 billion/$943 million in additional liquidity "through a series of financings and other transactions with certain lenders and key stakeholders."
Canada announced "open skies" agreements with South Korea and New Zealand.
777-333ER (35784, C-FIVS), (ILF) leased.
August 2009: Air Canada (ACN) said July system traffic including Jazz Air decreased -3.3% to 4.85 billion (RPM)s on a -4.1% dip in capacity to 5.8 billion (ASM)s, producing a load factor of 83.6% LF, up +0.6 point.
(ACN) suspended activity related to the implementation of a new reservations system under development with (ITA) Software. (ACN) recorded a second-quarter impairment charge of C$67 million/US$61.9 million related to the development of the system, dubbed Polaris.
Mike Rousseau (ACN)'s (CFO), said the decision came after several months of reviewing all ongoing and planned capital expenditures. "We had projected close to $40 million/US$37 million in additional capital expenditures, most planned for 2010" in connection with the new system, he said. (ACN) will continue working toward the implementation of certain components of the solution, such as shopping and Web fare technology, Rousseau said.
The news came as (ACN) reported net income of +C$155 million in the 2nd quarter, up from +C$122 million in the 2nd quarter of 2008. The increase was boosted largely by foreign-exchange gains. But it reported an operating loss of -C$113 million, compared to operating income of +C$7 million in the second quarter of 2008. In addition, passenger revenue decreased by -$396 million, or -16%, from the second quarter of 2008, due to a decline in yield of 8.9% and a drop in traffic of -7.9% (RPM).
(ACN) said it will launch daily nonstop service between Montreal and Brussels using 211-seat 767-300s with same-plane service continuing on to/from Toronto. Service will begin on June 12 "subject to government approval." (ACN) will offer daily, Montreal - Houston Intercontinental service beginning November 30 aboard Jazz Air CRJ700s.
(ACN) will launch summer seasonal service to Athens and Barcelona from Toronto and Montreal next year. Subject to government approval, the service will be operated June 3 to October 18 using 244-seat 767-300ERs. Both routes will be operated 6x-weekly, with half the flights originating in Toronto and half in Montreal.
(ACN) released a "touch application" for Apple iPhones/iPods that will allow passengers with the devices "to retrieve electronic boarding passes, track flight information in real time, receive notification of itinerary changes and obtain other [flight] details." Executive VP & Chief Commercial Officer (CCO) Ben Smith said the application is "only the first iteration. We will continue to add new features in response to customer demand." (ACN) said the app, which it claimed is the first of its kind among North American airlines, is available free online.
(ACN) and (ITA) Software signed a contract in September 2006 for the development of a new-generation system to replace its legacy RES III system, which was managed by (IBM). The transition to the new system originally was envisioned for 2007, with a rollout of airport modules in 2008. But, as is often the case with transitions to new systems, the original schedule was overly optimistic. In April 2007, (ACN) said the developmental work on (ITA)'s side would be completed by the fall of that year. Little news on the project was forthcoming after that point.
Calin Rovinescu (CEO) emphasized that (ACN) has "a great relationship with (ITA). They've done great work." He said (ACN) will revisit the Polaris project in the future, "but since we don't know when that future will come, we took the conservative approach of writing it down." He said the implementation of the Web and fare components would result in some cost savings, as would "other improvements to our existing reservations system."
Cara Kretz (ITA) Software's VP Corporate Communications, said the reservations systems can be used for any other airline. "There are nuances and specific features designed for (ACN), but we're not building a one-size-fits-all system," she said. "It's completely flexible and configurable, and you can make changes as you go."
Kretz said (ITA) is talking to other airlines about using the system. "We are actively engaged with them and providing live demos," she said. (ITA) is not planning any shift in focus, she said. "We have a clear strategy, and (ACN)'s announcement doesn't change that at all," she said. Kretz added that (ITA) is not planning any headcount reduction. "We are well capitalized, and we will continue to hire as planned," she said.
September 2009: Air Canada (ACN) and Jazz flew a combined 5.13 billion (RPM)s traffic in August, down -0.9% year-over-year. Capacity fell -3.6% to 5.92 billion (ASM)s, lifting load factor +2.4 points to 86.8% LF.
Jazz Air is eyeing a return to Toronto City Center airport (YTC) after having been forced out by an exclusivity agreement struck between the Toronto Port Authority and Porter Airlines. "We operated at the island airport for 18 years before we were evicted," Jazz (CEO) Joseph Randell said during a recent investment conference, according to "The Globe and Mail." "We're looking forward to getting back in there. We believe that any public facility in Canada should have free and open access, and not be commercially regulated by the provider of the infrastructure." Until March 2006, Jazz operated 5x-daily (YTZ) - Ottawa flights. It was evicted by Regco Holdings, which owns terminal operator City Centre Aviation. Regco was controlled by Porter (CEO), Robert Deluce. Jazz's ouster was followed six months later by Porter's first flight. DeLuce said he was confident Porter would survive any "substantial distractions" that may arise. It expects to be operating a fleet of 20 Bombardier Dash 8-Q400s by spring.
Jazz Air announced tentative labor agreements with approximately 1,000 customer service agents and some 900 maintenance and engineering (MT) employees represented by the Canadian Auto Workers.
Jazz Air promoted Senior VP Employee Relations Colin Copp to (CEO), and Senior VP Operations Support Jolene Mahody to (COO).
Lufthansa Technik (DLH) (LTK) signed a 10-year total component support contract with (ACN) for 6 777-200LRs and 12 777-300ERs.
October 2009: Air Canada (ACN) and Jazz Air flew 4.17 billion (RPM)s traffic in September, down -2.1% year-over-year, while capacity dropped -2% to 5.23 billion (ASM)s. Load factor slipped -0.2 point to 79.7% LF.
(ACN) closed its previously announced equity offering, raising net proceeds of C$249 million/$233.3 million and hinting that (ACN), which appeared to be teetering on the edge of bankruptcy last spring, is righting itself financially under new President & (CEO) Calin Rovinescu. The offering comprised the sale of 160,500 units composed of one Class "B" voting share or one Class "A" variable voting share and one-half of one share purchase warrant. Rovinescu said his "No 1 task" since taking over from Montie Brewer in the spring has been to insure the stabilization of the company. "That was more important than anything else," he said. He appears to have succeeded. In July, (ACN) reached agreement with lenders and stakeholders leading to C$1 billion in additional liquidity and successfully lobbied the Ottawa government to have Canada's pension regulations changed, offering a bit of breathing room on its pension liabilities. It also reached new 21-month labor agreements with its 5 major unions. "I'm very proud of what we have managed to achieve. With those pieces in place we think we have a stable environment to ride out the downturn," Rovinescu said. He added, however, that (ACN) is "not going to sit on our hands" until the market improves but is moving forward with targeted expansion, with new services next year to Brussels, Athens, and Barcelona. On November 30 it will launch daily Montreal - Houston Intercontinental service, a route made viable by (CAL)'s entry into the Star (SAL) alliance. (ACN) will follow this with winter seasonal nonstop flights from Calgary to Maui and Honolulu.
Rovinescu also said (ACN) has managed to maintain a 55% to 57% share of the domestic market in the face of WestJet (WJI)'s steady encroachment. The domestic business generates less than <40% of (ACN)'s passenger revenue, with the remainder split pretty evenly between trans-border and intercontinental services, he said.
Delivery-wise, (ACN) is well-positioned in the current down market, with no new airplanes planned until July 2013, when the 1st of its 37 787s is set to deliver.
(ITA) Software said that (ACN) will deploy its "pricing, shopping and Web front end modules across multiple online channels, including (ACN)'s consumer website and travel agency website," with implementation scheduled for next summer. In August, (ACN) announced it had suspended activity related to implementation of its new reservations system under development with (ITA) and recorded a second-quarter impairment charge of C$67 million/$61.9 million related to development of the system, dubbed Polaris. (ITA) said that (ACN) "will provide testing and domain expertise to (ITA) as it completes the remaining work on its Passenger Services System solution."
Hamilton Sundstrand (HS) signed a 10-year agreement with Air Canada (ACN) to provide component and repair services on (ACN)'s 18 777s under (HS)'s Comprehensive Accessory Repair and Exchange aftermarket program.
The Greater Toronto Airports Authority (GTAA) announced that landing fees and terminal charges at Toronto Pearson will each be reduced by -10% effective January 1. (GTAA) said that landing fees have been cumulatively lowered by -13.1% since 2007, while terminal fees have been cut by -15% over the same period. "This fee reduction is welcome because it helps us control costs in this challenging economic environment," Air Canada (ACN) Executive VP & (COO), Duncan Dee said.
See video "Air Canada 777-300ER to Tokyo Narita" - -
November 2009: Air Canada (ACN) and Jazz flew 3.85 billion (RPM)s traffic in October, a -1.3% decrease from the year-ago month. Capacity fell -0.5% to 4.84 billion (ASM)s and load factor dipped -0.6 point to 79.6% LF.
(ACN) reported 3rd-quarter net income of +C$277 million/+$260.2 million, reversed from a net loss of -C$132 million in the prior-year period, noting that it was helped significantly by a +C$295 million foreign exchange gain that compared to a -C$87 million loss last year. President & (CEO) Calin Rovinescu told analysts and reporters that it would be "another 12 to 18 months" before (ACN) expects to see a full recovery to pre-recession revenue levels, explaining that (ACN)'s rebound may lag general economic recovery since it will rely on businesses to regain enough confidence to once again purchase premium tickets at standard fares. 3rd-quarter premium revenue was down -16% "entirely due to lower yield, as traffic in premium cabins grew" >5%, (CFO) Michael Rousseau pointed out.
"The worst of the worst seems to be behind us," Rovinescu said. "Sprouts of green are coming up from the earth. However, we're [heavily] reliant on the premium traveler and that will come back more slowly." He added that (ACN) is in far better shape than it was earlier in the year owing to C$1.25 billion in new liquidity, much of it finalized during the third quarter. It had a cash balance of C$1.5 billion as of October 31. He said he is continuing to push for "cultural change" at (ACN), pressing employees to adopt a "just-do-it mentality" and for the company to become "more entrepreneurial" so that it can react "nimbly" to evolving market conditions. He noted that (ACN) is pressing forward on a "cost transformation program" that aims to slash -C$500 million in annual costs by 2011, with -C$175 million in cuts already achieved.
(ACN) said it expects full-year 2009 system capacity to decline -4.25% to -4.75%, a slight revision from previous estimates of a -4.5% to -5.5% cut. It declined to project 2010 capacity.
3rd-quarter revenue dropped -13.3% to C$2.67 billion, while expenses lowered -12.2% to C$2.6 billion, producing operating income of +C$68 million, down -39.3% from +C$112 million last year. Traffic decreased -2.1% to 14.15 billion (RPM)s on a -3.3% dip in capacity to 16.95 billion (ASM)s, producing a load factor of 83.5% LF, up +1 point. Passenger yield fell -11.2% to C16.9 cents, as (PRASM) lowered -10.2% to C14.1 cents and (CASM) slid -9.2% to C15.4 cents. (CASM) excluding fuel rose +4.5% to C11.3 cents.
(ACN) is another Star Alliance (SAL) member with a new longhaul route set to start next summer. (ACN) will connect Calgary with Tokyo Narita 3x-weekly using a 767-300ER. The route may work, especially in the summer, if the success of energy companies in Alberta province continues to benefit the local economy, and if enough Japanese tourists are lured to nearby attractions like Banff national park ((SAL) alliance’s All Nippon (ANA) will help with that). Making the route work during the winter, however, will be tougher. (ACN) also does serve Tokyo from Toronto and Vancouver, routes that may lose some Calgary origin and destinations connecting passengers now that the new nonstops are available.
Air Canada (ACN) said it has begun trials of onboard Wi-Fi on select flights to Los Angeles from Toronto and Montreal using Aircell's Gogo In-flight Internet service. Initially, the system will be available only while flights are over the continental USA. (ACN) said it plans eventually to extend it to other routes in North America, pointing out that development of appropriate infrastructure in Canada is required to allow air-to-ground wireless communications in that country. The cost of the service will range from $9.95 per flight for laptop users to $7.95 for personal electronic devices, and tests will run until January 29. Following the test period, (ACN) will analyze usage and customer feedback before introducing the service on additional routes. It also must obtain regulatory approval for a broader rollout.
"(ACN) is the 1st Canadian airline to begin offering customers access to the Internet while they are flying," Senior Director Marketing Louise McKenven said, noting that passengers will have "access to standard power outlets" to plug in laptops.
Aircell said that after "starting on only a handful of planes a year ago, availability and usage have expanded rapidly and Gogo served its one millionth customer in October." It projected that it would reach 2 million customers by January, claiming that 100,000 new customers are using the in-flight service weekly. "While public debates continue regarding whether passengers will pay for the service, the hundreds of thousands of paid Gogo sessions every month have answered that question," AirCell President & (CEO) Ron LeMay insisted. He said passengers are using Gogo for a wide variety of on line tasks encompassing both business and leisure. "They log onto Gogo as soon as the plane reaches 10,000 feet and don't log off until they have to," he said, claiming passengers using the service "spend twice as much time on Gogo as a visitor to the average ground-based hot spot." He said that 30% of Gogo users daily "are repeat users and that figure is climbing."
767-36N (30851, C-GHLU) and 2 A320-211s (255, C-FGYS; 324, C-FKPT), WFU at Roswell.
December 2009: Air Canada (ACN) and Jazz flew 3.18 billion (RPM)s traffic in November, a -1.2% drop from the year-ago month. Capacity rose +2.7% to 4.26 billion (ASM)s and load factor declined -2.9 points to 74.7% LF.
(ACN) will offer daily, Goose Bay - St John's service beginning May 1 aboard Jazz Air CRJ-100/-200s and daily flights to Iqaluit from Ottawa and Montreal from March 28 aboard Jazz CRJ700s.
(ACN) will launch daily, Toronto - Copenhagen service on June 24 aboard a 767-300ER.
(ACN) will begin charging economy (Y) passengers C$30/$30 to check a 2nd bag on flights to/from the USA and C$50/$50 on flights to/from Europe and Israel on January 19. A 2nd piece of checked luggage will continue to be free on flights within Canada and to/from Latin America, the Caribbean, Asia and Australia. Premium loyalty program members will be exempt.
The USA Air Transport Association (ATA) announced that 15 airlines have signed Memos of Understanding (MOU)s with either AltAir Fuels, Rentech or both expressing nonbinding commitment to support future biofuel supply. Air Canada (ACN), American Airlines (AAL), Atlas Air (TLS), Delta Air Lines (DAL)/(NWA), FedEx Express (FED), JetBlue Airways (JBL), Lufthansa (DLH), Mexicana (CMA), Polar Air Cargo (PAO), United Airlines (UAL), (UPS) Airlines, and US Airways (AMW)/(USA) signed with both providers. Alaska Airlines (ASA) and Hawaiian Airlines (HWI) went with AltAir only and AirTran Airways (CQT) signed with Rentech. The (ATA) said discussions with additional fuel producers "about other projects" have started. "This agreement is a significant step forward, establishing a framework for a large group of diverse carriers to negotiate a definitive fuel purchase agreement," Rentech President & (CEO) D Hunt Ramsbottom said.
AltAir is working on producing some 75 million gallons of jet and diesel fuel derived from camelina oils or comparable feedstock per year at a new plant in Anacortes, Washington, USA. Rentech plans to produce around 250 million gallons per year of synthetic jet fuel derived principally from coal or petroleum coke near Natchez, Mississipi, USA with the resultant carbon dioxide sequestered and the carbon footprint potentially further reduced by integrating biomass as a feedstock. Last summer, 8 airlines operating at Los Angeles International (LAX) signed a deal with Rentech for the supply of a renewable synthetic diesel fuel for use in ground service equipment (GSE).
The European Union (EU) finalized and implemented an "open skies" accord with Canada. The Canada agreement, 1st announced in May, allows airlines from each side to operate freely without any restrictions on the number of carriers or flights between any airport in the (EU) and any in Canada. (ACN) announced it would operate daily seasonal service between St John's and London Heathrow May 27 - September 26. (ACN) Executive VP & (COO) Duncan Dee said the "agreement opens up a realm of new commercial opportunities for (ACN) throughout the (EU)."
January 2010: Air Canada (ACN) and Jazz Air flew 3.86 billion (RPM)s traffic in December, up +3.4% year-over-year. Capacity rose +4% to 4.75 billion (ASM)s, lowering load factor -0.5 point to 81.2% LF.
(ACN) announced the following new routes from Toronto Pearson to the USA: Daily to Orange County from April 6 aboard an A319; daily to San Diego from June 17 aboard an A319; daily to Portland, Oregon, from June 17 aboard an E190; 2x-daily to both Memphis and Cincinnati from May 17 aboard Jazz Air CRJs; and 2x-daily to both Portland, Maine, and Syracuse from May 17 aboard Air Georgian Beech 1900Ds. (ACN) also increased international flights to Athens, Barcelona, and Copenhagen from Toronto, as well as to Brussels from Montreal.
(ASIG) was contracted by (ACN) to provide grand handling services, cabin cleaning and deicing at Newark. (ASIG) and (ACN) work together at 10 other USA airports. (ACN) also renewed its ground handling agreement with Singapore Cargo for services at Los Angeles.
February 2010: Air Canada (ACN) and Jazz Air flew a combined 3.86 billion (RPM)s in January, a +4.1% increase year-over-year. Capacity climbed +4.9% to 4.99 billion (ASM)s and load factor slipped -0.6 point to 77.5% LF.
(ACN) reported a 2009 net loss of -C$24 million/-$22.4 million, significantly improved over a net loss of -C$1.03 billion in 2008, as it was helped by +C$657 million in gains on foreign exchange that were reversed from -C$655 million in losses in the prior year. President & (CEO) Calin Rovinescu said (ACN) carrier "overcame tremendous challenges" last year and has started 2010 in a far "more stable financial position" than in early 2009, citing C$1.2 billion in additional liquidity raised last year. He added that the "cost transformation program (CTP)" launched in 2009 is "on track" to achieve -C$500 million in annual cost savings by the end of next year.
(CFO) Michael Rousseau explained that -C$215 million of the -C$500 million will come from process/productivity improvements including efficiency increases in fuel consumption, maintenance operations and "manpower." Another -C$170 million will come from renegotiated contracts with suppliers including its agreement with Jazz Air and -C$115 million from "revenue optimization" programs. "We need to make (CTP) part of our (DNA)," Rovinescu said, commenting that "we have not seen the back end of this recession," necessitating strict cost discipline.
He added that (ACN) will focus this year on "leveraging international growth opportunities" and specifically target USA passengers connecting to USA hubs to fly to destinations in Europe and Asia. Toronto "is positioned to compete with eastern USA hub airports" for international passengers, he said. (ACN)'s 2010 international capacity growth will "outpace" its overall planned system capacity increase of +4% to +6%, while domestic capacity will rise only +1.5% to +2.5%, he noted. He added that the capacity growth will be achieved without fleet expansion.
The company's 2009 revenue fell -12.2% to C$9.74 billion, and operating loss widened -92.7% to -C$316 million from -C$164 million the prior year. Traffic lowered -5.2% to 47.88 billion (RPM)s on a -4.4% cut in capacity to 59.34 billion (ASM)s, producing a load factor of 80.7% LF, down -0.7 point. Yield dipped -7.6% to C17.7 cents, as (RASM) declined -8.1% C16.4 cents, and (CASM) sank -5.4% to C16.9 cents. (CASM) ex-fuel rose +3.3% to C12.8 cents.
March 2010: Air Canada (ACN) said >1,000 mechanics who perform Maintenance Repair & Overhaul (MRO) work on its airplanes via Aveos Fleet Performance, formerly Air Canada Technical Services, will be laid off owing to reduced utilization of its A320 family airplanes resulting in lower (MRO) demand. Machinists (MT) based in Montreal, Winnipeg, and Vancouver will be affected, with -470 dropped in April followed by an additional -540 in June. (ACN) said that as many as 815 could be recalled later. Yhe International Association of Machinists & Aerospace Workers said (ACN) rejected a government-sponsored workshare program that would have mitigated the number of layoffs. "Air Canada (ACN) is not willing to administrate the [workshare] program," the union's (ACN) unit said. "This program would have lessened the blow to our members and the company simply doesn't care."
Air Canada (ACN) now plans to cut its annual cost base by more than the -C$500 million/-$489 million it targeted earlier this year, (CFO) Michael Rousseau told reporters in Toronto. "We are not going to be satisfied hitting -C$500 million. We know of some things within our control and there is an incredible effort within the entire company to drive out costs," he said, according to "Reuters." (ACN) intended to find the -C$500 million in savings by the end of 2011 and has cut -C$256 million so far, Rousseau said.
May 2010: Air Canada (ACN) and JazzAir flew a combined 3.87 billion (RPM)s traffic in April, up +1% year-over-year, on a -0.7% fall in capacity to 4.7 billion (ASM)s. Load factor rose +1.3 points to 82.4% LF.
Jazz Air ordered 15 Bombardier Dash 8-Q400 NextGens valued at approximately $454 million and took options on an additional 15. If options are converted to firm orders, the total value would increase to approximately $937 million. President & (CEO) Joseph Randell said, "This airplane, which in Jazz configuration will have 74 seats in a single-class cabin, offers superior passenger comfort, fuel efficiency and improved environmental performance." Jazz currently operates 64 CRJs and 64 Bombardier Dash 8-Q00 Series turboprops on regional flights under contract with (ACN). Bombardier has booked firm orders for 378 Dash 8-Q400s/Q400NGs and had delivered 288 as of January 31.
June 2010: Air Canada (ACN) and Jazz Air flew a combined 4.24 billion (RPM)s traffic in May, up +9.7% year-over-year, on a +6.4% rise in capacity to 5.17 billion (ASM)s. LF rose +2.5 points to 82% LF.
(ACN) launched daily seasonal, St John's - London Heathrow service aboard an A319 through September 26. (ACN) launched daily service from Toronto Pearson to San Diego and Portland (Oregon), aboard an A319 and Emb-190 respectively.
Air Canada (ACN) said that that it has "received a commitment" from (GE) Japan Corporation for a senior secured term loan facility of "up to $170.5 million" that will allow it to finance "a portion of the purchase price" for 16 airplanes that it currently leases and operates. The leased airplanes comprise 12 A319s and 4 767-300ERs. It said it plans to buy 8 of the A319s and the 767s next year and 4 of the A319s in 2012.
July 2010: Air Canada (ACN) and Jazz flew 4.79 billion RPMs traffic in June, a +15% increase year-over-year, while capacity rose +9.9% to 5.66 billion (ASM)s. Load factor increased +3.8 points to 84.7% LF.
6 airlines formed a member-based, not-for-profit organization called Open (AXIS) Group to promote a standardized XML (eXtensible Markup Language) schema as the optimal electronic messaging structure for airline system connectivity used in content distribution. The members are Air Canada (ACN), American Airlines (AAL), Continental Airlines (CAL), Delta Air Lines (DAL), United Airlines (UAL), and US Airways (AMW)/(USA). (ATPCO) has been invited to serve as the founding Allied Member and former Frontier Airlines (FRO) VP Jim Young will serve as Executive Director.
The Open (AXIS) Group’s mission is to expand the adoption, promotion, enhancement and maintenance of a robust airline industry-standardized (XML) schema that supports a range of airline transactions, including booking and (PNR) management, multiple passenger management, ticketing, exchange, refunds, voids, optional services, bundling and (EMD) management. "Having this standard provides a one-stop shop for modern airline connectivity," said American Airlines (AAL) Director Merchandising Strategy Cory Garner.
Membership is not a requirement to use the group's messaging standard; the (XML) schema is available to all on the group's website. "We plan on being an open, transparent and inclusive group," Young said. "The Open (AXIS) Group is structured to respond quickly to the fast-paced needs of the airlines."
Air France Industry (AFI)/(KLM) (E&M) was selected by Air Canada (ACN) for maintenance support of the airline’s (GE90-110/115) engines powering its 18 777-200LR and 777-300ER airplanes. The exclusive 12-year contract covers on-site/on-wing operations, shop visits, engine components, spare engine support and engine engineering.
August 2010: Air Canada (ACN) and Jazz Air flew 5.38 billion (RPM)s traffic in July, a +10.8% increase year-over-year, while capacity rose +9.1% to 6.33 billion (ASM)s. Load factor rose +1.3 points to 84.9% LF.
(ACN) reported a 2nd-quarter net loss of -C$203 million/-$198.7 million, reversed from a +C$155 million profit in the year-ago period, despite being profitable on an operating level. The result was negatively impacted by a C$54 million interest expense and -C$156 million in foreign exchange losses, reversed from foreign exchange gains of +$355 million in the year-ago quarter. (ACN) executives highlighted (ACN)'s +C$75 million operating profit for the three months ended June 30, turned around from a -C$113 million operating loss last year. Revenue rose +12.9% to $2.63 billion.
President & (CEO) Calin Rovinescu told analysts that (ACN) posted a "solid performance" in the second quarter, and noted that overall economic conditions are "gradually improving." (ACN) is not shying away from growing capacity but most of its added seats are on transborder and international flights. "We're leveraging Toronto [Pearson] as a global transfer point," he said, reiterating his vision that (ACN) will increasingly compete head-to-head with USA carriers for international traffic. "You have to think of the fact that Toronto is really an underutilized opportunity. If you draw a catchment area around Toronto, most of the people in it are in the USA."
2nd quarter system traffic lifted +8.7% year-over-year to 12.9 billion (RPM)s on a +5.3% climb in capacity to 15.52 billion (ASM)s, producing a load factor of 83.1% LF, up +2.6 points. (ASM)s are projected to increase +6% to +7.5% for the full year, but domestic capacity will only rise +1%. (ACN) stated that 2010 capacity growth "is expected to be achieved without adding incremental airplanes through increased utilization of the fleet."
2nd quarter yield increased +3.3% to C$0.179 as (RASM) rose +7% to C$0.169 and (CASM) lowered -0.9% to C$0.164. (CASM) ex-fuel dipped 4.4% to C$0.122.
(ACN) will launch daily, Toronto Pearson - New Orleans service on October 30. (ACN) will launch daily, Vancouver - Tokyo Haneda service January 29 aboard a 767-300ER, 2 class, 211-seats. (ACN) already serves Tokyo with a nonstop to the city’s Narita International Airport. “With Canada’s only service to Haneda Airport,
Air Canada (ACN) is offering travelers to Japan the best of both
worlds and twice as many flights to get there from Vancouver,”
said Chief Commercial Officer Ben Smith. “Customers will be able to choose between flying non-stop to Haneda, which is only 30 minutes from downtown Tokyo, or they can continue to fly nonstop to Narita International Airport for onward domestic or international connections on our Star Alliance (SAL) partners," Smith added.
4 A319-112s (1630, XA-MXG; 1673, C-GSJB; 1742, C-GJVY; 1805, XA-MXJ), returned from Mexicana (CMA).
October 2010: Air Canada (ACN) and United Continental Holdings (UCH), the parent of merger partners United Airlines (UAL) and Continental Airlines (CAL), said they've concluded a Memo of Understanding (MOU) "setting out the principles for a comprehensive revenue-sharing joint venture (JV)" on USA/Canada trans-border services.
(UAL), (CAL), and (ACN) are all members of the Star Alliance (SAL). "Working cooperatively with our partner Air Canada (ACN), we can create a more streamlined travel experience for customers traveling between the USA and Canada, providing more travel options and benefits while reducing travel times," (UCH) President & (CEO) Jeff Smisek said.
(ACN) President & (CEO) Calin Rovinescu added the (JV) would "provide many benefits and revenue synergies. By managing pricing, scheduling and sales through a stronger joint venture (JV), the carriers will be better able to serve customers by offering more travel options."
(ACN) operates flights to 59 USA cities while (UAL)/(CAL) operates to 16 Canadian destinations. (ACN) said the (JV) "is expected to come into effect in early 2011" and is subject to relevant regulatory approvals in Canada and the USA and "finalizing documentation."
As co-members of the Star (SAL) Alliance, the carriers already have received antitrust immunity (ATI) from the USA Department of Transportation.
November 2010: Air Canada (ACN) launched seasonal 2x-weekly, Montreal - Phoenix flights operating on Saturdays and Sundays until April 30. It also increased daily, Toronto - Phoenix service to 2x-daily for the winter season.
The European Commission (EC) fined 11 airlines a total of €799 million/$1.1 billion for "operating a worldwide cartel which affected cargo services within the European Economic Area." The (EC) said the carriers "coordinated their action on surcharges for fuel and security without discounts over a 6-year period." Air France (AFA) received the largest fine at €182.9 million, followed by its affiliate (KLM) at €127.2 million. Other fines include British Airways (BAB) (€104 million), Cargolux (CLX) (€79.9 million), Singapore Airlines (SIA) (€74.8 million), (SAS) (€70.2 million), Cathay Pacific Airways (CAT) (€57.1 million), Japan Airlines (JAL) (€35.7 million), Martinair (MTH) (€29.5 million), Air Canada (ACN) (€21 million), Qantas (QAN) (€8.9 million) and (LAN) Airlines (€8.2 million).
Lufthansa (DLH) and its subsidiary Swiss International Air Lines (CSR) "received full immunity from fines under the (EC)’s leniency program, as it was the 1st to provide information about the cartel." "It is deplorable that so many major airlines coordinated their pricing to the detriment of European businesses and European consumers," said (EC) VP Competition Joaquin Almunia. "With today’s decision, the (EC) is sending a clear message that it will not tolerate cartel behavior." The (EC) charged that the "cartel members" coordinated pricing from December 1999 to February 2006.
The (EC) in late 2007 sent out official statements of objections to as many as 25 carriers regarding cargo price fixing. It said that 11 carriers originally charged were not fined.
The (EU), USA Department of Justice, Australian Competition and Consumer Commission and other authorities worldwide have been investigating anti-competitive practices in air cargo since 2005. Cargolux (C LX) President & (CEO) Ulrich Ogiermann and Senior VP Sales & Marketing Robert Van de Weg were recently indicted in a USA court on charges of conspiring to fix and coordinate certain surcharge rates on air cargo shipments to and from the USA.
Air France (AFA)/(KLM) said it considered the level of the fine to be "disproportionate given the fact that the economic analysis demonstrated that the actions in question had no detrimental effect on the freight shippers or the freight forwarders. Moreover, the level of the fines disregards the economic hardship that the air cargo industry has suffered, and will have a distortive effect on the level playing field." It added that it intends to appeal the decision to (EU) courts. Because the level of the fine exceeds the level of provisions already taken by the company for potential cargo antitrust payments, (AFA)/(KLM) will book a charge of €127 million for the 1st half of its current fiscal year.
(SAS) said it has not been involved in a global cartel and the fines are disproportionate. It also plans to appeal the decision, a process that could take several years. The fines will be accounted for in (SAS)'s 3rd-quarter earnings.
Air Canada (ACN) said it may appeal the decision and said the penalty is “more than adequately” covered by a C$125 million provision it made in 2008. "We are highly disappointed and strongly contest the considerable level of the fines, which we believe to be disproportionate to (SAS) Cargo's actions," said (SAS) Chief Legal Officer, Mats Loennkvist. "We have cooperated fully with the (EC) during the entire investigation and, for slightly >4 years, we have disputed the (EC)'s view that (SAS) Cargo has been involved in a global cartel."
January 2011: SEE ATTACHED "ACN-2011-01-2010 WORLD TOP TRAFFIC."
In a textbook preemptive move, Alaska Airlines (ASA) began flying to Honolulu from Bellingham, an airport located between Seattle and Vancouver, BC, Canada. The idea is to prevent Allegiant Air (WJE), which already serves 8 destinations from Bellingham, from getting a foothold in the Hawaii market, one that’s increasingly key to (ASA)’s fortunes. (WJE) is buying 757s to start Hawaii service. Of course, Air Canada (ACN) and WestJet (WJI) also fly to Honolulu from Vancouver, BC, while (ASA) and Delta Airlines (DAL) have Honolulu non-stops from Seattle. It might not be long before Southwest (SWA) enters the Hawaii market using 737-800s (which start arriving in 2012), although it would probably fly there from California, where it has stronger brand loyalty. (ASA) is also using 737-800s for its new Bellingham flights.
February 2011: Air Canada (ACN) earned net income of +C$107 million/+$107.5 million in 2010, reversed from a -C$24 million net loss in 2009, crediting cost discipline and strong growth in international revenue—particularly on transpacific flying—for the turnaround. 4th-quarter net income was +C$134 million, reversed from a -C$56 million deficit in the prior-year period, on a +11.5% escalation in revenue to C$2.62 billion.
President & (CEO) Calin Rovinescu told analysts and reporters that the results show (ACN) is "indeed headed in the right direction." He said (ACN)'s 1st priority will be the continued growth of its global network, noting that its transpacific traffic rose +20% year-over-year in 2010. Transpacific revenue jumped +31% for the year. According to (ACN), there was +21% year-over-year growth in fourth-quarter premium revenue, led by a +23% heightening in transpacific premium revenue. Rovinescu said (ACN) will have "added focus on capturing international traffic from the USA" via more trans-border flying and increased international frequencies at key hubs, especially Toronto Pearson (YYZ). "We remain committed to growing connecting international traffic [and want to] capture a greater share of USA-originating international traffic," he stated, pointing out that USA passengers traveling internationally via (YYZ) "more than doubled over the past year."
After raising system capacity +7% (ASM)s in 2010 compared to 2009, (ACN) plans to lift (ASM)s another +5.5% to +6.5% in 2011. "There was some risk in raising capacity more than some of our USA competitors, but that strategy turned out to be correct," Rovinescu commented. Cost-cutting will also remain a priority, he added, projecting that (ACN)'s cost efficiency program initiated in 2009 will lead to C$530 million in annual savings by the end of this year.
Full-year operating revenue increased +11.3% to C$10.8 billion and 2010 operating income was C$407 million, reversed from an operating loss of C$316 million in 2009. Full-year traffic heightened +8.3% to 51.88 billion (RPM)s on a +7% rise in capacity to 63.5 billion (ASM)s, producing a load factor of 81.7% LF, up +1 point. Passenger yield lifted +2.3% to C$0.181, as (RASM) rose +3.5% to C$0.17 and (CASM) fell -3.1% to C$0.164. (CASM) ex-fuel decreased -4.5% to C$0.122.
March 2011: Air Canada (ACN) said it has been notified by Boeing (TBC) that its 1st 5 787 deliveries, originally slated for 2012 and then pushed back to the 2nd half of 2013, "are now targeted for delivery" during the 2013 4th quarter and the 2014 1st half. "This represents an average delay of between 5 and 7 months from the previous schedule," (ACN) stated, adding that (TBC) is still evaluating the schedule for (ACN)'s remaining 32 787 deliveries.
The troubled 787 program is >3 years behind its original schedule and has been delayed 7 times.
April 2011: In what would be its 3rd such effort, Air Canada (ACN) plans to launch a separate low-cost carrier (LCC) that could eventually comprise as many as 50 airplanes. A letter outlining the plan, obtained by "The Globe & Mail" and other Canadian newspapers, was sent this week by (ACN) to the Air Canada Pilots Association (ACPA) as part of ongoing labor negotiations. (ACN) previously ventured into the low-fare carrier (LCC)-within-an-airline segment with Tango, which launched in November 2001, and Zip, a Western Canada-based carrier that started services in 2002 with the aim of competing directly against Calgary-based WestJet (WJI). Both efforts were abandoned, although (ACN) ultimately turned Tango into a fare class on mainline flights, leading to (ACN)'s groundbreaking a la carte fare product that begat fare unbundling and ancillary products across the industry.
(ACN) reportedly has reached a tentative accord with (ACPA) leaders on a new collective bargaining agreement. When asked about the (LCC), an (ACN) spokesperson said that (ACN) is "not commenting on the labor negotiations at all."
According to a "Globe & Mail" summary of the letter, (ACN) said the (LCC) would initially have a fleet of six A319s and four 767s with the potential of eventually rising to 50 airplanes, which would not have business class (C) seats but would have premium economy (PY) seating. The primary emphasis of the unit would be serving leisure destinations in Europe, Mexico, and the Caribbean. Rival WestJet (WJI) has made significant inroads serving Mexico and the Caribbean in recent years, offering passengers bulk leisure package rates via its rapidly growing "WestJet Vacations" business.
The letter from (ACN) to the pilots (FC)'s union reads, "The mandate of the (LCC) will be limited to the market segment seeking low-cost air travel. The (LCC) is not intended to replace mainline routes the company considers financially viable. The (LCC)'s success and viability depends on the parties' [airline management and pilots (FC)] ability to fulfill this mandate on a competitive basis."
(GE) Aviation (GEC) signed an agreement with Air Canada (ACN) for the provision of "myEngines." The solution's digital app suites help customers manage and access their engine data on smart phones, laptops and other computer systems, (GEC) said.
May 2011: Air Canada (ACN) reported a 1st-quarter net loss of -C$19 million/-$19.7 million, narrowed from a -C$112 million net deficit in the year-ago period, and cut domestic capacity in the face of escalating energy expenses. The net result was helped by foreign exchange gains of +C$104 million and declining unit costs, but (ACN) said rising fuel prices kept it in the red.
President & (CEO) Calin Rovinescu stated, "In the quarter, we incurred over C$120 million in additional fuel expense from the same quarter last year. Based on expected jet fuel prices and system capacity, we estimate that these higher fuel prices will add approximately +C$800 million to our operating costs in 2011."
To contend with the high fuel-cost environment, (ACN) said full-year domestic capacity will drop by -0.5% compared to 2010, down from a +1.5% increase planned in mid-March. Overall system capacity will rise +3.5% to +4.5% (ASM) for the full year, down from mid-March guidance of +4.5% to +5.5% (ASM) growth. (ACN) noted that it is assuming the per-liter fuel price net of hedging will average C$0.90 during the current quarter and C$0.88 for the full year.
(ACN)'s 1st-quarter revenue rose +9% year-over-year to C$2.75 billion, while expenses heightened +6% to C$2.82 billion, including a +20% rise in fuel expense to C$742 million. Operating loss was -C$66 million, narrowed from an operating deficit of -C$136 million in the 2010 March quarter.
1st quarter traffic increased +5.7% year-over-year to 12.36 billion (RPM)s on a +7.7% lift in capacity to 15.86 billion (ASM)s, producing a load factor of 77.9% LF, down -1.5 points. Passenger yield heightened +4.2% to C$0.186, as (RASM) rose +1.5% to C$0.174 and (CASM) decreased -1.4% to C$0.178. (CASM) ex-fuel lowered -5.3% to C$0.131.
(ACN) operated a fleet of 205 airplanes with an average age of 11 years as of March 31. It plans to add one 767-300 to its fleet this year and no airplanes next year. It will retire a 767-300 in 2012.
June 2011: Canadian Commissioner of Competition Melanie Airken filed an application with Canada's Competition Tribunal, an independent law enforcement agency, seeking to "prohibit" Air Canada (ACN) and United Continental Holdings (UAL)/(CAL) from launching a planned revenue-sharing joint venture (JV) on USA/Canada trans-border services.
In a statement, Airken said, "If the (JV) is allowed, it will monopolize 10 important Canada/United States routes, and substantially reduce competition on nine additional routes, leading to increased prices and reduced consumer choice on key trans-border routes. If allowed to proceed, consumers will face higher prices and even less choice on key, high demand air passenger routes. The proposed (JV) is effectively a merger between (ACN) and United Continental (UAL)/(CAL) on all of their Canadian and USA operations."
Airken did not stop at challenging the (JV), arguing that three existing "coordination agreements" between (ACN) and (UAL)/(CAL) give the companies "the power to charge passengers inflated fares. The current agreements between (ACN) and (UAL)/(CAL) already allow the companies to set prices above competitive levels on all key 19 trans-border routes, which alone violates [Canadian antitrust (ATI) law]. Making matters worse, they now want to fully merge their operations."
(ACN), (UAL) and (CAL) are all members of the Star Alliance (SAL). As co-members of the (SAL) Alliance, the carriers already have received antitrust immunity (ATI) from the USA Department of Transportation. (ACN) operates flights to 59 USA cities, while (UAL)/(CAL) operates to 16 Canadian destinations.
(ACN) said in a statement that it "strongly disagrees with the Commissioner's position. (ACN) and United Continental Holdings (UAL)/(CAL) believe in the merits and consumer benefits of the proposed trans-border (JV) and enhanced cooperation between the parties that builds on the existing relationship between (ACN) and (UAL). The airlines' position is consistent with the findings of regulatory agencies around the world, and supported by leading international economists, who have recognized and documented the benefits to consumers of such arrangements."
(ACN) added that it has agreed with (UAL)/(CAL) to "suspend the proposed trans-border (JV) pending further developments relating to the outcome of the Commissioner's application. (ACN)'s trans-border services remain unaffected."
Jazz Air parent, Chorus Aviation reported net income of +C$14.7 million/+$15.1 million for the first quarter ended March 31, a slight decrease from a +C$16.4 million net profit in the 2010 first quarter. Operating profit of +C$21.6 million was up +36.2% year-over-year, as revenue lifted +24.7% to C$443 million.
Last month, Jazz Air took delivery of its 1st Bombardier Dash 8-Q400 NextGen airplane.
September 2011: Saying it is remaining "consistent with the baggage polices of other major carriers," Air Canada (ACN) said it will start charging C$25/$25 for a first checked bag on all Canada - USA transborder flights. Previously, economy (Y) passengers were allowed to check one bag for free on (ACN) transborder flights. The new fee will apply for all tickets purchased on or after September 7 for travel on or after October 11. A second checked bag on transborder flights will cost C$35/$35.
(ACN) also bumped up its second checked bag fee on international flights to Africa, the Middle East, Russia, Asia, Australia, and South America to C$70/$70 from C$50/$50. A first checked bag on those flights will remain free. Domestically, (ACN) allows one bag free but charges C$20 for a second checked bag.
The Canadian Union of Public Employees (CUPE), representing nearly 7,000 Air Canada (ACN) flight attendants (CA), lifted its call for the cabin crew (CA) to strike after reaching a tentative agreement with airline management on a new labor contract. Details of the tentative pact were not made public. (CUPE) said it will encourage members to ratify the deal. The flight attendants (CA) rejected a previous tentative agreement in August and then overwhelmingly voted to take strike action.
October 2011: Air Canada (ACN) and the Canadian Union of Public Employees (CUPE) representing (ACN)'s 6,800 flight attendants (CA) have agreed to binding arbitration to settle their dispute, eliminating the possibility of a strike.
(ACN) cabin crew (CA) earlier this month attempted to go on strike after voting down two tentative agreements negotiated by (ACN) and (CUPE) leadership. But Canadian Labor Minister, Lisa Raitt intervened by referring the matter to the Canadian Industrial Relations Board (CIRB), a move that temporarily prevented a strike.
With the assistance of (CIRB), (ACN) and (CUPE) agreed on a binding process to be concluded by November 7. The agreement means that, under Canadian labor law, no strike or lockout can occur, (ACN) noted.
"This negotiated settlement is unquestionably in the best interest of employees, the traveling public and the Canadian economy," Raitt stated.
(ACN) Executive VP & (CCO), Duncan Dee said, "(ACN) is pleased to have a process in place whereby we can avoid any disruption of service and eliminate uncertainty for our customers."
Delta (DAL) TechOps signed a five-year agreement with Air Canada (ACN) to provide repair and overhaul services for (ACN)’s fleet of 18 (PW4060) engines, powering nine 767s.
757-25F (30757, C-GJZK), ex-(G-JMCD) and 757-28A (27621, C-GJZV), ex-(G-FCLA), Thomas Cook (JMA) wet-leased, for Jazz Air operations.
757-2G5 (26278, C-GJZD), 2 757-25Fs (28718, C-GJZX; 30758, C-GJZH), and 757-28A (28203, C-GJZB), Thomas Cook (JMA) wet-leased and 3 Bombardier Dash 8 Q402s (4388, C-GGNW; 4394, C-GGND; 4397, C-GGMU), deliveries for Jazz Air (Air Canada Express) operations.
February 2012: Air Canada (ACN), in the midst of navigating challenging labor negotiations, reported a disappointing -C$249 million/-$250.2 million 2011 net loss, widened from a -C$24 million net deficit in 2010.
President & (CEO), Calin Rovinescu conceded to analysts and reporters that (ACN)'s current financial situation is untenable, necessitating change. "We are into a transformation," he said. "For us to be successful long-term, we have to transform."
He said the company is aggressively tackling controllable costs, exploring revenue enhancement initiatives, maintaining strong liquidity (about C$2.1 billion at year end 2011) and will continue to manage capacity "conservatively," with full-year system (ASM)s expected rise no more than +1.5% year-over-year in 2012.
But the labor situation, including the Air Canada Pilots Association calling for a strike vote this week and (ACN) narrowly avoiding a flight attendants (CA)'s work action last year, continues to be "very challenging," Rovinescu said. (ACN) is attempting to collectively bargain new labor deals with nearly all of its work groups.
Rovinescu said he is "optimistic" (ACN) can solve its labor problems through "negotiations" and avoid service disruptions. He noted that "pension reform" remains the "main challenge" in talks with unions.
(ACN)'s plan to establish a subsidiary low-cost carrier (LCC) is also "proving contentious" in labor negotiations, he allowed, but added that (ACN) believes the segment is important and "we are considering various options" to engage in low-cost operations.
Rovinescu took note of rival WestJet (WJI)'s announcement that it will launch a regional turboprop airline next year. "There's no question this (WJI) announcement is something we find of interest," he said. "They are a strong competitor and we expect them to compete in the regional market."
But he emphasized that AC's focus will be more on growing its international network than buttressing domestic services. "We are mindful of the fact that we have a mature market in Canada," Rovinescu said. "There's no question there is pressure on domestic yields."
(ACN)'s 2011 revenue increased by +7.6% to C$11.61 billion, while expenses heightened +8.3% to C$11.43 billion, including a +27.5% jump in airplane fuel costs to C$3.38 billion. Operating income was C$179 million, down -35.6% year-over-year.
March 2012: Air Canada (acn) limped into its 75th year of business after posting two consecutive years of losses and now finds itself in a public relations (PR) fiasco as wildcat strikes by employees recently disrupted operations and the sudden closure of its primary maintenance provider, Aveos has put (ACN) on the defensive as it attempts to deflect criticism for 2600 employees suddenly losing their jobs.
Those snafus, followed a higher number of pilots (FC) calling in sick as the Canadian Government stepped in to prevent both pilots (FC) and mechanics (MT) from striking as negotiations to reach agreements to replace concessionary contracts forged in 2009 hit impasses. It looks as if (ACN) and its management team headed by (CEO), Calin Rovinescu face major obstacles in their goal of concluding labor contracts that he concludes are “essential to create a climate of stability”.
Canadian Labor Minister, Lisa Raitt has intervened to prevent March 12 work stoppages at (ACN). Using a tactic deployed last year to stop (ACN)'s flight attendants (CA) from striking, Raitt referred disputes between the airline and both its mechanics (MT) and pilots (FC) to the Canadian Industrial Relations Board (CIRB). As a result, (ACN) can't lock out its 3,000 pilots (FC) represented by the Air Canada Pilots Association (ACPA) March 12, as it threatened March 8, and (ACN)'s 8,600 mechanics (MT) and ground handlers can't strike March 12, as the International Association of Machinists and Aerospace Workers (IAMAW) threatened March 6.
Instead, all parties must wait while the (CIRB) determines whether work stoppages at (ACN) would affect "the health and safety of the public," a process of indefinite length.
(ACN) and the unions are allowed to keep negotiating. "I encourage the parties to continue working together to resolve their individual disputes and restore confidence for the traveling public," Raitt said.
Responding to Raitt's move, (ACN) said, "The strike deadline by the (IAMAW) and Air Canada (ACN)'s lockout notice to the (ACPA) [have] no effect. There will therefore be no disruption of service."
(ACN) had reached tentative agreements on new labor pacts with both (IAMAW) and (ACPA) leaders, but rank-and-file union members voted down the accords. (ACN) and (ACPA) are involved in a six-month federal mediation process started last month, but the airline presented to the pilots what it characterized as a take-it-or-leave-it proposal March 8 and then issued a lockout notice.
"After committing to a federal mediation process that was to last up to 180 days, the corporation instead chose to table what it termed its 'final' offer only 23 days into the process, without any serious effort to bridge our differences by negotiating in good faith," (ACPA) said. "This offer demands even more concessions from our pilots (FC). It's ridiculous that the corporation continues to focus on squeezing a group of professionals whose compensation represents only about 4% of revenue."
Aveos Fleet Performance Inc the sole airplane and engine-maintenance provider for Air Canada (ACN), put about -2,600 employees out of work as it filed for insolvency protection and shut plants nationwide. The company cited “uncertain work volume” after losing as much as -$16 million in revenue in less than two months as (ACN) projects were canceled or delayed. Airframe maintenance stopped permanently March 21 and Aveos hasn’t yet decided on other operations.
Employees in Montreal, where Aveos is based, were told not to report for work, Machinists Local 1751 President, Marcel Saint-Jean said.
"The way Aveos did this speaks to how much trouble they are in,” Karl Moore, a Professor of Business Strategy at Montreal’s McGill University who specializes in the airline industry, said. “It’s definitely not the appropriate way to do it.”
(ACN), which owns 17.5% of Aveos and was the repair operator’s biggest customer, said the shutdown won’t affect day-to-day maintenance of in-service planes, which (ACN) handles directly with its 2,300 maintenance (MT) employees.
(ACN) extended Aveos $15 million in debtor-in- possession financing through a court-appointed monitor. “This stabilization should permit Aveos to reopen certain of its facilities and recall certain of its employees, which should in turn allow (ACN) to induct some additional maintenance work with greater confidence over the coming days and weeks.”
Aveos posted a termination letter to airframe union employees on its website, along with a schedule for retrieving personal belongings and toolboxes. “Given that we have faced reduced, deferred, and canceled maintenance services despite Aveos’ exclusive contracts with our principal customer, we no longer have the capital resources we need to continue to do business,” Aveos (CEO), Joe Kolshak said in a memo on the website.
Aveos said it has about 2,600 employees in Canada. That includes about 1,800 workers in Montreal, 350 in Winnipeg and 300 in Vancouver. Tony Didoshak, General Chairman of Machinists District 140, who took part in recent bargaining with Aveos, said the company was late in paying pension contributions and union dues.
Aveos was created in 2007 when (ACE) parent, (ACE) Aviation Holdings Inc sold a majority stake in its airplane maintenance unit. It also has 1,400 employees in El Salvador, according to a company fact sheet.
Aveos said October 31 it had raised C$50 million/$50.4 million in financing from a group of lenders including Credit Suisse Group AG to invest in its component center and expand its engine-maintenance capabilities.
In January 2010, Aveos reached an agreement to reduce its debt to C$75 million from about C$800 million, with lenders including (ACN) converting some debt into equity. The company obtained an additional C$75 million working-capital facility from some of the lenders at the time. “The goal was to emerge stronger and better aligned to meet the needs of a changing market,” Kolshak said. “Today’s filing is a tragedy on many fronts, but beyond the institution, we recognize the human toll and dislocation this action will cause.”
(ACN) has a contingency plan to use other providers, primarily in the USA and Canada, for maintenance services Aveos can’t handle. (ACN) has three main service contracts with Aveos for airframe, engine and component maintenance.
The component and airframe maintenance contracts expire in 2013, while the engine maintenance contract continues through 2018. “Safety is (ACN)’s highest priority and the safety of (ACN)’s fleet will not be compromised by this development.”
(ACN) fell -1.1% to 91 cents in Toronto. The shares have dropped -8.1% this year. (ACN) has sought bids from other providers as the contracts’ expiration dates draw closer, and said it has no intention of purchasing Aveos or assuming its operations.
Gogo said its air-to-ground in-flight connectivity system achieved a program milestone, the installation of its 1,500th commercial airplane. For the year to date, the company has installed Gogo on more than >140 airplanes.
"This is a big milestone for Gogo and it's obviously big for passengers who want to stay connected at 30,000 feet," said Michael Small, Gogo's President & (CEO). "Since 2008, we've worked to get Gogo up and running on nine of our airline partners, which represent approximately 87% of Internet-enabled North American commercial airplanes."
Gogo can now be found on nine major airlines including on all domestic AirTran (CQT), Virgin America (VUS) and nearly all Delta Air Lines (DAL) and Alaska Airlines (ASA) flights. Gogo is also currently installed on more than >300 American Airlines (AAL) airplanes and on select US Airways (AMW)/(USA), Frontier Airlines (FRO), Air Canada (ACN) and United Airlines (UAL) flights.
April 2012: In the week following the release of the iPad, Gogo Director Airline Operations, Tim Lemaster said the Wi-Fi provider identified over >10,000 separate usages of iPads being used on board airplanes. The tablets continue to outpace cell phones and laptops 10 to one on airplanes, he said.
“The traditional In-Flight Entertainment (IFE)s are going to be squeezed down to a more long-haul market,” Lemaster said. He pointed out that Wi-Fi-enabled short-haul flights that take advantage of passengers’ own personal electronic devices (PEDs) could help the industry avoid buying and installing seatback systems. However, on a 3-hour flight, Gogo has seen the average passenger pushing 61 megabytes by themselves — - a challenging amount of data to support on multiple (PED)s. “It is a big challenge in the industry,” of “how to push more through the pipe, because the pipe is limited,” he said.
American Airlines (AAL) provides passengers with Samsung tablets on select routes, Manager (IFE), Erik Miller said. “Customers love them,” but he cautioned “there are pros and cons” to eliminating the seatback system altogether.
“Airlines used to take a year to 18 months looking at new airplanes, looking at new systems,” Lemaster said. “Is the right decision today to go away from a traditional (IFE)? It probably makes sense on a short-haul flight (people are already bringing on their own personal devices). I would say in the next three to five years, we will see that decision more and more, move away from the traditional (IFE).”
Thomas Cook Canada will discontinue operating its dedicated charter fleet of six 757 airplanes by April 28 due to market conditions. The airplanes were used on routes from Canada to "various sun destinations" under a flight services agreement with Jazz Aviation (ACN). Later, Westjet (WJI) signed a contract with tour operator Thomas Cook Canada to transport its passengers on a variety of its routes from Canada to the Caribbean and Mexico next winter. Thomas Cook (JMA)/(GUE) had previously announced to give up its own operations where it had deployed six 757-200s operated by Jazz Air (ACN) on these routes each winter.
Air Canada (ACN) and its 3,000 pilots (FC) said they will try again to reach a collective bargaining agreement that has so far been elusive. (ACN) and the Air Canada Pilots Association (ACPA) union representing the flight deck crew said in a joint statement they “have agreed to re-commence negotiations.” The return to the negotiating table comes after (ACN) accused pilots (FC) of disrupting service by engaging in unauthorized sickouts.
The pilots (FC), along with other (ACN) workers, have been prevented from striking because of actions taken by Canadian labor minister Lisa Raitt. According to the (ACN)/)ACPA) statement, “The parties have agreed to a 10-day negotiation period to begin following the appointment of an arbitrator by [Raitt]. (ACN) and (ACPA) will ask that the arbitrator facilitate the negotiations process.”
(ACN) earlier this year reached a tentative agreement on a new labor pact with (ACPA) leaders, but rank-and-file union members voted down the deal in February and called for a strike, which Raitt disallowed.
Later, (ACN) and its 3,000 pilots (FC) said they will try again to reach a collective bargaining agreement that has so far been elusive.
(ACN) and the Air Canada Pilots Association (ACPA) union representing the flight deck crew said in a joint statement they “have agreed to re-commence negotiations.” The return to the negotiating table comes after (ACN) accused pilots (FC) of disrupting service by engaging in unauthorized sickouts.
The pilots (FC), along with other (ACN) workers, have been prevented from striking because of actions taken by Canadian labor minister Lisa Raitt. According to the (ACN)/(ACPA) statement, “The parties have agreed to a 10-day negotiation period to begin following the appointment of an arbitrator by [Raitt]. Air Canada (ACN) and (ACPA) will ask that the arbitrator facilitate the negotiations process.”
(ACN) earlier this year reached a tentative agreement on a new labor pact with (ACPA) leaders, but rank-and-file union members voted down the deal in February and called for a strike, which Raitt disallowed.
May 2012: Air Canada (ACN) reported a first-quarter net loss of -C$210 million/-$213 million, widened from a -C$19 million net loss in the 2011 March period, and acknowledged that recent labor unrest has been damaging to (ACN)’s company culture and public brand.
But (ACN) pointed out that much of the net loss was attributable to non-cash, one-time items and that its cash position remains strong (over C$2.2 billion in unrestricted cash-on-hand at quarter’s end, up +C$150 million from the end of 2011). It also had strong yield growth on both transpacific and transatlantic routes, and (CEO), Calin Rovinescu said that a federal mediation process now underway will bring (ACN)’s labor contract issues to a final resolution “no matter what” within 90 days.
“We expected labor to remain a major focus for us in the first quarter and that certainly turned out to be the case,” he said. (ACN) saw tentative deals reached with the leaders of its largest unions fall through, and maintains that “wildcat strikes” by pilots (FC) led to service disruptions that caused the airline to lose bookings from a Canadian public wary of the wrangling between the country’s largest airline and its workers.
“Our brand is strong and resilient, but we can’t take it or our passengers for granted,” Rovinescu said. He added that while (ACN) is willing to pay workers “good wages and benefits,” it needs labor to agree to contract changes that drive “dramatically improved” operational efficiency.
The damage to (ACN)’s culture and brand “is recoverable,” he said. “Lots and lots of stuff needs to change [in terms of how the airline operates]. Large scale transformation of a legacy carrier such as ours to compete in the new world is not without its challenges. We’re chipping away at many, many, many inefficiencies inherent in a legacy environment such as this.”
(ACN)’s first-quarter revenue rose +7.6% year-over-year to C$2.96 billion and passenger yield lifted +3.3%, including an impressive +12.8% increase in transpacific yield. (ACN) achieved “solid passenger revenue results in the quarter, which is attributed to strong passenger demand and yield growth,” Rovinescu said, adding that returning to profitability “is certainly the objective. Does it happen overnight? No.”
(ACN) relaunched its service from Toronto Pearson to New York (JFK).
June 2012: Air Canada (ACN) is considering setting up a new long-haul low-cost carrier (LCC) in cooperation with an international airline and financial investors that would be based at Vancouver International airport (YVR) and mainly operate to Asia. (ACN) had last considered a (LCC) operation last year, which had faced strong resistance from its trade unions. Under the new plan, (ACN) would only own a minority stake in the new carrier not allowing its (ACN)'s pilot (FC) union to use their veto right. (ACN) currently serves Beijing Capital (PEK), Hong Kong Chep Lap Kok International (HKG), Seoul Incheon International (ICN), Shanghai Pudong International (PVG) and Tokyo Narita New Tokyo International (NRT) airports from Vancouver.
Airbus (EDS) and Air Canada (ACN) joined forces in June to perform a flight from Canada to Mexico that cut CO2 emissions by more than >-40% compared to a regular flight.
The A319 flew from Toronto to Mexico City and used biofuels as well as streamlined air traffic management (ATM) procedures to achieve the emissions savings.
(ACN) flight AC991 was the second leg of a series of four biofuel flights taking (ICAO) Secretary General, Raymond Benjamin to Rio de Janeiro for the Rio+20 United Nations Conference on Sustainable Development.
Dubbed the "Perfect Flight," the flight used a 50% blend biofuel made from used cooking oil supplied by SkyNRG. It flew the most direct route, using the most efficient vertical flight profile and applying a continuous descent approach into Mexico City to save fuel and limit noise. And it made use of a combination of several eco-efficient operational procedures such as single engine-taxiing, external airplane cleaning for improved aerodynamics, light weight cabin equipment and a neatly tailored flight plan.
“Today’s flight with Air Canada (ACN) proves that the aviation industry is in a strong position to reduce emissions and fly many more Perfect Flights,” Airbus (EDS) President & (CEO), Fabrice Brégier said. “To make this a day-to-day commercial reality, it requires now a political will to foster incentives to scale up the use of sustainable biofuels and accelerate modernization of the air-traffic-management system. We need a clear endorsement by governments and all aviation stakeholders to venture beyond today’s limitations.”
Air Canada (ACN) Executive VP & (COO) Duncan Dee described the flight as (ACN)’s “greenest ever.”
The Jet Midwest Group (JMW) announced it has acquired 17 complete 767 airplanes from Air Canada (ACN).
(ACN) has announced that Executive VP (COO), Duncan Dee will be taking early retirement this fall following a 15-year career with (ACN).
July 2012: (ACE) Aviation, former parent company to Air Canada (ACN), has appointed Ernst & Young as liquidator and announced the resignation of all its directors and officers.
On April 25, (ACE)'s shareholders approved a special resolution providing for the voluntary liquidation of (ACE). Its net assets as of April 30 amounted to C$381 million/$374.6 million, including 31 million shares in (ACN) valued at C$31 million.
The liquidator will now distribute (ACE)’s remaining net cash to its shareholders after providing for outstanding liabilities, contingencies and the cost of the liquidation. Final distribution to shareholders and cancellation of the shares of (ACE) is expected to occur in mid-2013.
In the first quarter, (ACE) reported a net loss of -C$3 million, including unrealized losses of -C$2 million on its investment in (ACN).
Airbus (EDS) and Air Canada (ACN) performed North America’s first “Perfect Flight” over international borders, cutting CO2 emissions by >40% compared to a regular flight. The commercial flight with passengers from Toronto, Canada to Mexico City, combined modern airplane technology, sustainable alternative fuels, streamlined Air Traffic Management (ATM) and best practice operations such as single-engine taxiing.
July 2012: Air Canada (ACN) made an A330 trip from Montreal to London carrying a number of Canadian athletes for the 2012 Olympic Games, which was powered by a 50/50 mix of regular jet fuel and biofuel derived from recycled cooking oil. This blend (along with implementation of more efficient pre-flight, taxi, takeoff and flight techniques) were expected to reduce emissions by -10%.
Jazz Aviation has reached a tentative labor contract with its Maintenance and Engineering employees represented by the Canadian Auto Workers (CAW) Local 2002.
The agreement is subject to a ratification vote by union members and covers approximately 885 (CAW)-represented Maintenance and Engineering employees at Jazz. Further details of the agreement were not released pending ratification.
August 2012: Air Canada (ACN) reported a second-quarter net loss of -C$96 million/-$96 million, more than doubling a -C$46 million net deficit in the prior-year period, as labor difficulties again hurt (ACN)’s bottom line.
But President & (CEO), Calin Rovinescu noted that new labor contracts recently agreed to via arbitration, will allow (ACN) to focus on returning to operating profitably.
“(ACN)’s operations were adversely impacted by labor disruptions in March and April of 2012, which resulted in a decline in bookings for travel originating in Canada in the immediate aftermath,” he said. “We were encouraged to see booking trends return to normal levels by the end of the second quarter. New collective agreements have now been finalized [bringing] finality to what has been a challenging collective bargaining process with our large Canadian-based unions.”
He added that the company will now intensely focus on “leveraging our international network, cost transformation, engaging our customers and culture change.”
(ACN)’s second-quarter revenue rose +2.4% to C$2.99 billion and operating profit was +C$63 million, down -13.7%. Traffic grew +1.4% to 13.87 billion (RPM)s on a +0.6% increase in capacity to 16.61 billion (ASM)s, producing a load factor of 83.5% LF, up +0.7 point. Yield lifted +1.2% year-over-year to C$0.19.
(ACN) said full-year 2012 capacity will increase just +0.5% to +1.5% over 2011.
Jazz Air parent, Chorus Aviation reported second-quarter net income of +C$22.9 million/+$22.3 million, up +35.3% from a +C$16.9 million profit in the year-ago period.
“Cash flow remains strong, and we remain focused on strengthening our foundation, improving our cost competitiveness and building the core value for all our stakeholders,” President & (CEO), Joseph Randell said.
Revenue increased +6% to C$426.3 million, while expenses rose +3.1% to C$389.7 million, producing an operating profit of +C$36.6 million, up +52.6% from a +C$24 million operating profit in the prior-year quarter.
Chorus Aviation is the holding company for Jazz Aviation and Air Canada Express, both of which took delivery of additional Bombardier (BMB) Dash 8 Q400s in the quarter. It added the last three Bombardier Dash 8 Q400s from the original order of 15. Jazz placed an order for six Dash 8 Q400 NextGen airplanes during the Farnborough Airshow.
Randell said Chorus is consolidating its heavy maintenance operations in Halifax by next summer to further improve operating efficiencies. “By increasing the number of newer airplanes in the Jazz fleet, the requirement for heavy maintenance is reduced. While we recognize the impact of this decision is difficult for a number of our employees — it is the right direction to take if we are to become more cost competitive and remain relevant in this industry as the competitive landscape continues to change.”
Chorus Aviation’s stake in Uruguay-based Pluna (PLU) included a write-down of C$16.4 million due to the takeover of the failing carrier by the Uruguayan government. Pluna (PLU) ceased operations in early July.
Also during the second quarter, Chorus and Air Canada (ACN) negotiated new rates under their capacity purchase agreement for 2012 through 2014.
(ACN) said it is concluding terms with the following Maintenance Repair & Overhaul (MRO) providers to perform scheduled airframe maintenance on its fleet of 205 airplanes: Premier Aviation Overhaul Center and Embraer (EMB) Aircraft Maintenance Services, for its Embraer (EMB) fleet; (AAR) Corporation (ALC) for its Airbus (EDS) narrow body fleet; Bedek Aviation Group (IAI) for its 767-300ER fleet; ST Aviation Services for its 777 and A330-300 fleet.
Air Canada (ACN) has announced plans to move some of its 38 A319-100s and 30 767-300ERs to a new low-cost carrier (LCC) from next year that will take over some leisure routes to the Caribbean, Europe and Mexico from Air Canada (ACN). Instead of just replacing its 767-300ERs with new 787-8s and 777-300ERs with (additional) deliveries scheduled from 2013 onwards, (ACN) plans to use the airplanes to expand its low-cost carrier (LCC) operation by also launching new routes.
September 2012: Aer Lingus (ARL) and Air Canada (ACN) have signed an interline agreement, with a code share due to follow early next year. The interline agreement allows for joint electronic ticketing and use of either airline’s check-in kiosks, plus baggage checking through to a final destination.
Until now, the only direct Canada - Ireland flight has been an (ACN) high-summer service between Toronto and Dublin. Passengers heading for Canada on (ARL) services fly to Chicago, then connect with United Airlines (UAL) flights to Calgary, Edmonton, and Winnipeg.
The new interline arrangement with (ACN) will allow passengers on (ARL)’s 23 daily flights from Ireland to London Heathrow to connect with (ACN)’s transatlantic services to a range of Canadian destinations.
Canada’s two largest carriers, Air Canada (ACN) and WestJet (WJI), are voicing no concerns about declining demand even as some indicators show that high debt levels and high unemployment rates are weakening Canadian consumer confidence. If that weakness intensifies, both carriers could face significant headwinds in 2013 as they endeavor to launch new airlines to broaden their reach into new markets. If domestic conditions worsen, it could affect the necessary cash flow generation required by those airlines to support the launch of their new business platforms.
Jazz Aviation announced that their flight dispatchers, represented by the Canadian Air Line Dispatchers Association (CALDA) have ratified a tentative agreement, which was reached August 31. The agreement will be in place for a six-year period. (CALDA) represents approximately 67 flight dispatchers employed by Jazz.
Klaus Goersch, AirTran (CQT)'s former Operations and Customer Service Chief is appointed as Air Canada (ACN)'s Chief Operating Officer (COO).
Canadian Maintenance Repair & Overhaul (MRO) provider, Aveos Fleet Performance filed for insolvency in March 2012, after its main customer, Air Canada (ACN), withdrew part of its work. Initially, there was hope that the Montreal-based maintenance company could continue to operate its engine and component facilities, but the staff never returned to work.
The component overhaul shop only opened in 2011, but Aveos never won sufficient custom beyond its former parent carrier (ACN) to make its business work. In August, UK spare part specialist A J Walter (AJW) took over the component shop, while Lufthansa Technik (DLH) (LTK) is poised to win the engine maintenance deal - although that work will shift to Germany.
A J Walter Aviation (AJW) completed its purchase of the component repair business of Aveos Fleet Performance. "(AJW) Technique" will be housed at the Aveos Montreal facility.
(AJW) President, Christopher Whiteside said finalization of the deal was a “challenging experience,” which has spanned “many weeks.” He added that over the next few months (AJW) Technique will rebuild the workshop’s capabilities and, over the long term, the facility will “provide many new jobs.”
(AJW) has more than >800 airline customers and more than >400 airplanes under contract. Its annual turnover is in excess of >$400 million.
October 2012: Air Canada (ACN) and United Continental Holdings (UCH) have reached an agreement with Canada’s Competition Bureau that should enable the (ACN)/United Airlines (UAL) Canada - USA transborder joint venture (JV) to go forward with some carve outs. “This agreement provides the flexibility to implement a Canada - USA transborder (JV), an increasingly common practice in the global aviation industry, and one that is an important competitive consideration as the industry continues to evolve,” (ACN) said.
The Competition Bureau said that the agreement will “protect consumers and preserve competition on 14 key, high-demand air passenger routes between Canada and the United States.” Under the accord, “(ACN) and (UCH) (UAL)/(CAL) have agreed not to implement their (JV) or to coordinate on 14 air passenger routes between Canada and the USA."
But, according The Canadian Press, the carriers will be able to implement the (JV) on flights between New York and Montreal, Toronto and Vancouver, as well on Toronto - Chicago, and Vancouver - Los Angeles services.
(ACN) has reportedly abandoned plans to set-up a new long-haul low-cost carrier (LCC) based at Vancouver International airport (YVR) in favor of the (LCC) project recently presented with a focus on shorter flights to the Caribbean and long-haul flights to Europe. According to a news report by the "Globe and Mail," it had worked on the plan with the Virgin Group to set-up a joint venture tentatively called Virgin Pacific that would have operated from Vancouver to Asia with 777-300ERs and 787-8s.
Air Canada (ACN) announced a 2013 fleet plan that includes the addition of two 777-300ERs and the transfer of 15 Embraer E175s to a regional carrier.
The 777-300ERs, which will be the 19th and 20th 777s to join (ACN)’s fleet, will arrive in June and September, respectively, of next year. Boeing (TBC) said earlier this year that (ACN) had ordered three more 777s. According to (ACN), it currently operates 56 wide body airplanes.
“The arrival of these new 777s, along with the [first of (ACN)’s 37] 787 Dreamliners in 2014, will allow us to introduce new routes at the mainline carrier and release airplanes from our existing fleet to our new low-cost leisure carrier,” President & (CEO), Calin Rovinescu said. (ACN) confirmed last month it will launch a low-cost carrier (LCC) in 2013; the subsidiary carrier’s fleet will eventually have 20 767s now operating in (ACN)’s mainline fleet.
(ACN) said it will need to hire more than >1,100 employees over the next 12 months: 900 for the mainline carrier and 200 flight attendants (CA)/pilots (FC) for the unnamed (LCC).
Additionally, (ACN) plans to transfer 15 E175s to Sky Regional Airlines, which will operate the airplanes through a capacity purchase agreement under the "Air Canada Express" brand. “The airplanes will continue to be operated on short-haul regional routes, primarily from Toronto and Montreal to destinations in the northeast United States,” (ACN) said. “The transfer of the 15 regional airplanes is expected to be made between February and June 2013.”
Sky Regional has operated Air Canada Express flights between Toronto City and Montreal Trudeau since May 2011.
There was a nice recent story on (CNN) TV News describing how an Air Canada (ACN) 777 came to the rescue of a sailor who got lost at sea during a storm. At the request of the Australian Maritime Safety Authority, the Air Canada (ACN) pilot (FC), who was flying the 777 to Sydney from Vancouver, dropped to 4,000 feet and asked everyone onboard to keep their eyes peeled for the yachtsman.
The sailor was indeed spotted and his location reported, after which he was successfully rescued by a merchant vessel that was in the area.
A more exciting-than-average bit of in-flight entertainment for the passengers. Bravo Air Canada (ACN)!
(AAR) (AFD)/(ALC) signed a letter of intent (LOI) with Air Canada (ACN) to provide scheduled airframe maintenance and modifications on (ACN)’s A320 series airplanes.
November 2012: Air Canada (ACN) reported a third-quarter net income of +C$429 million/+$432.2 million, reversed from a net loss of -C$124 million in the year-ago quarter. This improvement was driven by favorable foreign exchange gains, (ACN) said.
Third-quarter revenue rose +2.6% to C$3.33 billion and operating income was C$421 million, up +56% from C$270 million year-over-year.
(ACN) President & (CEO), Calin Rovinescu said in the third quarter, (ACN) “continued to focus on pursuing international growth opportunities and on the ongoing transformation of our cost structure. In addition, we have announced a number of planned fleet realignment initiatives: the transfer of 15 regional Embraer E175 airplanes to one of our Air Canada Express operators, Sky Regional Airlines, subject to certain conditions; the deployment of new Bombardier Dash 8 Q400s by another of our Air Canada Express operators, Jazz, on key Western Canada markets; and the introduction of two new 777 airplanes in the mainline fleet next year.”
Traffic for the third quarter was up +0.8% to 16.26 billion (RPM)s on a +0.2% increase in capacity to 18.84 billion (ASM)s, producing a load factor of 83.6% LF, up +0.5 point. Yield increased +1.6% to C$0.18.
Looking forward, Rovinescu said, “We are forming an integrated leisure group by combining the activities of our tour operator business with our new leisure airline. Our commercial team is currently focused on the 2013 launch of the leisure carrier and we look forward to providing further details in the coming weeks. Another recent positive development is the agreement reached with Canada’s Commissioner of Competition that will allow us to finalize and implement a Canada - USA transborder joint venture with United Airlines (UAL), our longstanding alliance partner, in this important aviation market"
Air Canada (ACN) during late 2012 and early 2013 appears to be making some offensive moves in western Canada prior to the highly-anticipated launch of WestJet (WJI)’s new regional carrier Encore. Ahead of Encore’s debut in second half (2H) 2013, (ACN) is bolstering frequencies in some markets and upgaging from 50-seat jets to 74-seat Bombardier DHC-8-Q400s prior to Encore’s debut with the same airplane type.
The moves by (ACN) in some of its western domestic markets could also be geared towards placing some capacity outside the highly competitive eastern region of the country. (ACN) has continued to face competitive pressure in that area, particularly the “Eastern Triangle” of Toronto, Montreal and Ottawa, from rivals WestJet (WJI) and Porter Airlines.
ACE Aviation Holdings has sold its 31 million shares of Air Canada (ACN) to Cormark Securities, four years after its initial attempt to dissolve the company. The deal also includes 2.5 million warrants to purchase (ACN) shares at exercise prices of $1.51 (1.25 million warrants) and $1.44 (1.25 million warrants) and is expected to generate net proceeds of approximately $58 million for (ACE).
“ACE no longer holds any shares or warrants in the capital of Air Canada (ACN),” it said.
(ACE) shareholders in April approved a voluntary liquidation and its directors and officers resigned in late June. The company was created in 2004 as part of (ACN)’s restructuring, and held 75% of (ACN). In December 2008, the company sought to purchase all of its outstanding convertible shares and senior notes to seek shareholder approval for liquidation, but in March 2009, announced that “in light of market conditions and stated opposition by certain shareholders,” it would postpone the vote indefinitely.
The Star (SAL) Alliance has elected Air Canada (ACN) President & (CEO), Calin Rovinescu as the new Chairman of the Star (SAL) Alliance Chief Executive board. He succeeds Air New Zealand (ANZ) (CEO), Rob Fyfe, who has held the post for the last two years. Fyfe plans to retire from (ANZ) at the end of the year after seven years.
Rovinescu said he is looking forward to working toward deepening the (SAL) alliance and pursuing shared priorities — which include strengthening the global network, focusing on providing a seamless travel experience, and maintaining the loyalty of customers through superior service and convenience.
Jazz Air parent, Chorus Aviation reported third-quarter net income of +C$37.2 million/+$37.8 million, more than doubled from +C$13.9 million year-over-year.
President & (CEO), Joseph Randell said, “Cash flow remains strong, and Jazz employees’ continued efforts to deliver solid customer service resulted in a +$1.1 million increase in performance incentives over the same period last year.” He also said the company achieved new collective agreements with Jazz’s flight dispatchers and maintenance and engineering employees in the third quarter.
Revenue increased +5.8% to C$435.6 million, while expenses rose +4.8% to C$399 million, producing an operating profit of +C$36.7 million.
The company said operating expenses were impacted by the changes in the fleet ownership structure for the Bombardier Dash 8 Q400 airplanes. Its Bombardier CRJ100 airplanes, previously reported under operating leases, are being replaced by owned DHC-8-Q400 airplanes.
(ACN) appointed Annette Verschuren to its board of directors. Verschuren is the past President of The Home Depot Canada, where she oversaw the company's growth from 19 to 180 Canadian stores and led its entry into China.
(AAR) (AFD)/(ALC) Aircraft Services has launched operations at the former Northwest Airlines (NWA) Maintenance base in Duluth, Minnesota, with the arrival of the first Air Canada (ACN) jet for maintenance. Base operations will begin with one line of heavy maintenance; within one year (AAR) expects three more maintenance lines to be up and running.
December 2012: Air Canada (ACN) and Turkish Airlines (THY) will launch a code share agreement in the second quarter 2013. The agreement will include (ACN) placing its code on (THY)'s Toronto - Istanbul service and on destinations in the Middle East and Africa region. (THY) will place its code on (ACN) service between Toronto and Istanbul.
South African Airways (SAA) signed a code share agreement with (ACN). (SAA) will place its code on (ACN)-operated flights to London from Vancouver and Toronto and from Toronto to New York (JFK) (including flights operated by Air Canada Express). (ACN) will place its code on (SAA)-operated services to Johannesburg from London, New York and Cape Town.
(ACN) is banking on continued strength in its Pacific network into 2013 as it aims to expand its reach into Asia during the summer high season next year through new service to Seoul from its Toronto hub and an expansion of offerings to Beijing and Tokyo Narita. At the same time (ACN) is tapping the strength of fellow Star (SAL) Alliance member Turkish Airlines (THY)’s network across central Asia, Africa and the Middle East.
The new flights to Istanbul could be (ACN)’s answer to the growing partnerships that airlines participating in other large global alliances are forging with Gulf carriers, something (ACN) and its major (SAL) Alliance partner, Lufthansa (DLH) have so far refused to explore as both carriers have been the most critical of the rapid expansion of Middle Eastern airlines during the last few years.
The moves by (ACN) into Asia during second half (2H) 2013 follow (ACN)’s strong performance in its existing markets in the region throughout 2012. Presently, (ACN) serves five destinations in the Asia Pacific region (Beijing (from Toronto and Vancouver), Shanghai (from Toronto and Vancouver), Hong Kong (from Toronto and Vancouver), Tokyo Narita (from Vancouver and Toronto) and Seoul (from Vancouver). Asia currently accounts for 10% of (ACN)’s international seats on offer and 26% of its international capacity (ASK)s.
January 2013: Air Canada (ACN) will make an aggressive push into new international markets next year — if all goes as planned. (ACN) is awaiting government approval to begin non-stop, Toronto - Istanbul service on June 4, as a gateway to Turkey, Central Asia, the Middle East, and Africa through a code share with Turkish Airlines (THY). This expansion could prove particularly valuable for (ACN) as competition stiffens on its home front, where WestJet (WJI)'s planned new regional operation could significantly undercut (ACN)'s fares. Although (ACN) remains confident that its hold in domestic markets will remain strong, the new international markets could be important to its fortunes in 2013.
South African Airways (SAA) signed a code share agreement with Air Canada (ACN). (SAA) will place its code on (ACN)-operated flights to London from Vancouver and Toronto, and from Toronto to New York (JFK) (including flights operated by Air Canada Express). (ACN) will place its code on South African Airways-operated services to Johannesburg from London, New York and Cape Town.
February 2013: Air Canada (ACN) posted 2012 net income of +C$131 million/+$131.5 million, reversed from a -C$249 million net loss in 2011.
(ACN) additionally said it will take delivery of three more 777-300ERs than previously announced. (ACN) had said it would take delivery of two 777-300ERs this year, with one arriving in June and the other in August. It said it will now take delivery of three more of the type, with one arriving in November, one in December and a third in February 2014. The five total 777s will bring its 777 fleet to 23 airplanes by next February.
The five new 777-300ERs will be the first (ACN) airplanes to include a new international premium economy (PY) section, which will first be offered to passengers on Montreal - Paris Charles de Gaulle flights starting in July. “The introduction of these 777-300ER airplanes in our fleet and launch of (ACN)’s new premium economy (PY) cabin on the Montreal - Paris route will allow us to compete effectively in a market with high demand for economy (Y) travel that is served by both international network and charter carriers,” Executive VP & (COO), Ben Smith said.
(ACN)’s 2012 revenue rose +4.3% year-over-year to C$12.1 billion and operating income was C$437 million, more than doubling 2011 operating income of C$179 million. (ACN)’s 2012 traffic increased +2.6% year-over-year to 55.65 billion (RPM)s on a +1.2% rise in capacity to 67.27 billion (ASM)s, producing a load factor of 82.7% LF, up +1.1 point. Yield lifted +1.8% to C$0.19.
Jazz Air parent, Chorus Aviation reported 2012 net income of +C$101 million/+$99 million, up +48.4% over +C$68 million in 2011. Revenue for 2012 was C$1.7 billion, up +2.8% over C$1.6 billion recorded in 2011. Expenses in 2012 increased +1.3% to C$1.6 billion from C$1.56 billion in the year-ago period. Operating income was C$128.6 million, up +26% from C$101.9 million year-over-year.
Fourth-quarter net income was +C$14.67 million, down -35.3% from a +C$22.7 million profit in the year-ago period. Revenue rose +1% to C$411.7 million, while expenses increased +1% to $386.2 million, producing an operating profit of +$25.4 million, up +0.4% from +$25.3 million in the prior-year quarter. “Our operating income improvement of +$26.7 million was driven by the operating margin from our [Bombardier] Dash 8 Q400 leasing operations, the one-time termination fee from Thomas Cook, and incentive revenue earned under the (CPA). Our continuous focus on safety and operational excellence resulted in a +$4.4 million increase in performance incentives earned in 2012 over 2011 as we consistently maintained the highest standing in on-time performance among Canada’s major operators.”
(ASM)s for the 2012 fourth quarter were 1.4 billion, down -3.3%. (CASM) was 27.36, up +4.4%, while (CASM) ex-fuel was 20.58, up +4.2%.
(ACN) will increase capacity during the second quarter on 19 domestic routes as it rolls out new Bombardier Dash 8 Q400 service to some cities. "This spring, (ACN) will strategically increase capacity by either scheduling larger airplanes or adding flights to meet strong demand in Western Canada and we will continue to roll out the Bombardier Dash 8 Q400 airplanes on additional routes in British Columbia, Alberta and the Northwest Territories in the coming months", says Marcel Forget, (ACN)'s VP Network Planning. "Air Canada Express flights are scheduled to enable convenient, point-to-point, same-day business travel, as well as convenient and easy connections to (ACN)'s extensive domestic, USA and international network at Calgary, Edmonton and Vancouver."
(ACN) introduced its DHC-8-Q400 service on the Edmonton - Regina and Edmonton - Saskatoon routes. Those cities will see capacity double immediately compared to the same time in 2012. Vancouver - Fort McMurray will also see capacity double in May, and Calgary - Portland, Oregon, USA service will increase in July 2013. Several other routes from Vancouver, Edmonton and Calgary to smaller cities will see a boost in service.
Jazz Aviation is flying the new Bombardier Dash 8 Q400s as Air Canada Express. In March, the regional airline will begin Bombardier Dash 8 Q400 service from Calgary to Edmonton, Victoria and Grande Prairie, as well as Edmonton to Fort McMurray. Service will start later in the year on Calgary - Yellowknife, Edmonton - Grande Prairie, Edmonton - Yellowknife, Vancouver - Prince George, and Vancouver - Fort St John.
(ACN) first announced it would boost the frequencies in Western Canada with Bombardier Dash 8 Q400 in October 2012. The airplanes are the first of six that "Chorus" plans to receive between February and April at a rate of two deliveries per month. Jazz is removing 9 Bombardier CRJ100 airplanes in connection with deliveries of the six airplanes, which were six of 15 options that Chorus turned into firm orders in June 2012.
WestJet (WJI)'s new regional carrier "Encore" is expected to compete with (ACN) for the same traffic in Western Canada. Encore is looking to stimulate traffic through offering attractive prices, said (WJI) Chief Financial Officer (CFO), Vito Culmone during a 25 February investor conference.
(WJI) had planned to introduce Encore's initial routes in late January, but that announcement has been pushed back to sometime later in this month.
Jazz Air ((IATA) Code: QK, based at Halifax Robert L Stanfield International (YHZ)) parent Chorus Aviation has lost one of its key shareholders this month when Fairfax Financial Holdings has sold its 27.6% stake in Chorus at the Toronto Stock Exchange. Fairfax is controlled by Canadian-Indian investor, Prem Watsa. Jazz Air operates 129 regional airplanes, both turboprops and regional jets on behalf of Air Canada ((IATA) Code: AC, based at Montréal Pierre Elliott Trudeau International (YUL)) (ACN) as Air Canada Express.
Etihad Airways (EHD) and Air Canada (ACN) have agreed to increase cooperation through a new code share agreement. The two airlines already have interline arrangements in place. The new agreement will offer through-checked bags, reciprocal frequent flyer benefits and code shares between Abu Dhabi and several unspecified North American points served by (ACN) through its Toronto hub. Discussions to finalize details are underway, with the aim of introducing code share services in the third quarter.
Subject to regulatory approval, (EHD) will place its EY code on Air Canada (ACN) flights between Toronto and select North American points.
In return, (ACN) will place its AC code on Etihad (EHD) services between Toronto and Abu Dhabi, as well as (EHD)’s flights between London Heathrow and Abu Dhabi. This announcement follows the recent decision by the governments of United Arab Emirates (UAE) and Canada to restore the previous visa regime, which means Canadian nationals can once again obtain a free visa on arrival in the (UAE). The (UAE) is Canada’s largest export market in the Middle East region and more than >40,000 Canadians and 150 Canadian companies are based in the (UAE).
May 2013: Air Canada (ACN), coming off a loss-making first quarter, is counting on the development of its international network to enable it to eventually achieve “sustained profitability.” (ACN) confirmed it incurred a first-quarter net loss of -C$260 million/-$258 million, which it had previously disclosed in a partial release of its earnings results last month.
Jazz parent, Chorus Aviation reported first-quarter net income of C$9.2 million/$9.037 million, down -64.9% from a +$26.2 million profit in the year-ago period.
Revenue fell 4.8% to $416.3 million while expenses lowered 2.9% to $395.5 million, producing an operating profit of $20.8 million, down 29.7% from a $29.6 million operating profit in the prior-year quarter.
Chorus Aviation President & (CEO), Joseph Randell said, “In our continued efforts to improve operational efficiency and to reduce costs, we enacted a voluntary separation program for our more senior pilots (FC) and maintenance (MT) employees. The severance cost of $5.7 million will provide a return within the next two years as ongoing operational costs are reduced. This expense, when factored with the unrealized foreign exchange loss of -$5.6 million into the adjusted net income for the quarter, increases earnings per share to the current market consensus of $0.17 per basic share.”
Airbus (EDS), Air Canada (ACN) and BioFuelNet Canada, hosted by Montreal’s McGill University, have formed a partnership to assess Canadian solutions for the production of sustainable alternative jet fuels with the long term goal to supply Air Canada (ACN). The first assessment is expected by the end of 2013.
“(ACN) has already operated two flights with biofuel and on each occasion we substantially reduced our emissions. We look forward to participating in this project to encourage the development of a source of alternative fuel in Canada. New technologies, such as alternative fuels, are one of the ways our industry plans to reduce its emissions to meet its target of carbon-neutral growth for 2020 and beyond,” said Paul Whitty, Director Fuel Purchasing & Supply at (ACN) and Chair of the Air Canada (ACN) Alternative Fuels Working Group.
May 2013: Air Canada (ACN), coming off a loss-making first quarter, is counting on the development of its international network to enable it to eventually achieve “sustained profitability.” (ACN) confirmed it incurred a first-quarter net loss of -C$260 million/-$258 million, which it had previously disclosed in a partial release of its earnings results last month.
Jazz parent, Chorus Aviation reported first-quarter net income of C$9.2 million/$9.037 million, down -64.9% from a +$26.2 million profit in the year-ago period.
Revenue fell 4.8% to $416.3 million while expenses lowered 2.9% to $395.5 million, producing an operating profit of $20.8 million, down 29.7% from a $29.6 million operating profit in the prior-year quarter.
Chorus Aviation President & (CEO), Joseph Randell said, “In our continued efforts to improve operational efficiency and to reduce costs, we enacted a voluntary separation program for our more senior pilots (FC) and maintenance (MT) employees. The severance cost of $5.7 million will provide a return within the next two years as ongoing operational costs are reduced. This expense, when factored with the unrealized foreign exchange loss of -$5.6 million into the adjusted net income for the quarter, increases earnings per share to the current market consensus of $0.17 per basic share.”
Airbus (EDS), Air Canada (ACN) and BioFuelNet Canada, hosted by Montreal’s McGill University, have formed a partnership to assess Canadian solutions for the production of sustainable alternative jet fuels with the long term goal to supply Air Canada (ACN). The first assessment is expected by the end of 2013.
“(ACN) has already operated two flights with biofuel and on each occasion we substantially reduced our emissions. We look forward to participating in this project to encourage the development of a source of alternative fuel in Canada. New technologies, such as alternative fuels, are one of the ways our industry plans to reduce its emissions to meet its target of carbon-neutral growth for 2020 and beyond,” said Paul Whitty, Director Fuel Purchasing & Supply at (ACN) and Chair of the Air Canada (ACN) Alternative Fuels Working Group.
777-333ER (42218, C-FIVW) delivery.
July 2013: Canada and China have forged a new and expanded bilateral aviation agreement that will allow for a threefold increase in passenger and cargo flights between those countries.
Canada’s Transport Minister, Jean-C Lapierre and International Trade Minister, Jim Peterson announced the agreement this month. “Given the rapid growth in air travel between Canada and China, this new agreement is very timely,” Lapierre said. “Expanding air services to China gives Canadians and Canadian business, new doorways through which they can increase their presence in this dynamic market,” Peterson added. The agreement permits additional passenger, all-cargo and code share services by the airlines of Canada and China. Air Canada (ACN) and Cargojet (CJT) intend to introduce new air services with the expanded rights, and Air Transat (AIJ) have also expressed interest in serving China.
(ACN) welcomed the agreement, saying, “(ACN) fully supports the liberalization of air services between Canada and China, which is Canada's second largest trading partner and a key market for our airline.”
(ACN) Executive VP & (CCO), Ben Smith said, “This summer, (ACN) has already added a total of 7x-weekly return flights to Beijing from Toronto and Vancouver, raising the number of (ACN) return flights to Beijing and Shanghai to 35x-weekly. The enhanced bilateral further expands opportunities for (ACN) to extend its coverage of cities in China in cooperation with our Star (SAL) Alliance partners, Air China (BEJ) and Shenzhen Airlines (SHZ). These changes will also support our international expansion, which we intend to accelerate, as 5 new 777-300 airplanes start entering service in our fleet this month and the 1st of 37 [Boeing 787] Dreamliners begin arriving in early 2014."
Air Canada Rouge isn't the 1st airline-within-an-airline launched by (ACN), but executives insist this time will have a different result. New labor agreements that allow a lower cost structure is the change that (ACN) executives are depending on to achieve success this time. "Our company is taking an important step in [its] goal to achieve sustainable profitability," (ACN)'s President & (CEO), Calin Rovinescu said June 25 during Rouge's launch event in Toronto.
Rouge is "fundamentally different" than other airlines-within-airlines, largely because it has "more attractive unit costs" that are in-line with other leisure-focused carriers, he said. Rovinescu estimated that operating A319s under the "rouge" brand will save the company -21% in its cost per available seat mile (CASM), while operating 767-300ERs under rouge will save -29% in (CASM).
Michael Friisdahl, President & (CEO) of rouge, said rouge will take over "under-performing", highly competitive leisure routes from Air Canada (ACN) and "make them profitable again." rouge will initially serve 3 European destinations and 10 Caribbean and Latin American destinations, but executives expect it to serve 23 destinations by the 2013 to 2014 winter season.
The rouge fleet initially includes 2 A319s and 2 767-300ERs, but the fleet will have 14 airplanes by the end of this year and eventually as many as 50 airplanes, executives say.
rouge will acquire its jets from (ACN) as the mainline carrier renews its fleet with new airplanes, including 5 777-300ERs being delivered through February 2014 and 37 787s being delivered through 2019.
With 50 airplanes, Rouge would be much larger than previous low-cost carriers (LCC)s established by (ACN).
In 2001, the company launched no-frills Tango, which served high-traffic routes with 13 A320s. Then came Zip in 2002; it primarily served western Canadian markets with a fleet that operated 12 737-200 airplanes. (ACN) shuttered Zip and Tango in 2004, noting that labor concessions with union groups made the carriers unnecessary.
Now, (ACN) says new labor concessions, plus the distribution heft of Air Canada (AVN) and Air Canada Vacations, will help Rouge succeed.
Executives have positioned Rouge as "hip and young," noting that it launches with 127 newly-hired flight attendants (CA).
A few dozen of those flight attendants (CA) attended the launch event on June 25, and most appeared to be in their 20s. They wore Rouge uniforms, which consist of burgundy sweater vests and narrow-brimmed fedoras called trilby hats. Rouge flight attendants (CA) belong to the Air Canada (ACN) Component of the Canadian Union of Public Employees (CUPE), which represents some 6,500 (ACN) flight attendants (CA). However, they work under a "supplement agreement" to the main collective bargaining agreement. Hourly pay for Rouge cabin attendants (CA) starts at C$22.99/US$21.92 and caps at C$36.03 after 5 years of service. By comparison, mainline (ACN) cabin attendants (CA) start at C$24.40 hourly and cap at C$51.22 after 10 years. Rouge attendants (CA) don't share seniority dates with (ACN) attendants (CA).
Work rules are different, too. While (ACN) attendants (CA) can contractually work up to 100 hours monthly, Rouge attendants have no monthly duty cap. There is no federal duty-time cap for cabin attendants (CA) in Canada.
Also, rouge attendants (CA) can fly after 14 hours of rest following an overseas flight, while (ACN) attendants (CA) must contractually take 24 hours of rest. "rouge cabin attendants (CA) offer the same good service and should benefit from the same working conditions [as (ACN) (CA)]. It's a shame that (ACN) implements a two-tier system at the expense of cabin attendants (CA)."
Also, unlike (ACN) (CA), rouge (CA) are trained by The Walt Disney Company in Orlando. Upon hiring, they must agree to pay C$49 monthly for three years to help cover expenses incurred during training.
Rouge has said the fee is for "incidentals." But those fees aren't incident to (CA)s earning entry-level Rouge wages. "They are young (CA)s [living] in a very expensive city like Toronto."
rouge launched with 50 (ACN) pilots (FC) who had to bid to fly rouge routes. They are represented by the (ACN) Pilots Association, but work under a carve-out agreement that was approved by a federal arbitrator in July 2012 following 19 months of negotiations. rouge pays pilots (FC) at a lower scale than mainline (ACN) pilots (FC), but moving to the brand can allow pilots (FC) to fly larger airplanes, the union says. For example, an A320 (ACN) pilot could move up to a rouge 767. rouge pilots (FC) are also exempt from duty time limits specified in the mainline agreement, meaning they can fly up to federal duty time limits, said the union. Estimating pay differences between pilot (FC) groups is difficult due to duty time differences and other factors.
Executives said denser seating on Rouge airplanes will generate cost savings. rouge's A319s have 142Y economy seats, including 24PY "rouge Plus" seats with more legroom. The 767-300ERs will eventually be configured with 282 seats, including 230Y economy seats, 28PY rouge Plus seats and 24C "Premium Rouge" seats. By comparison, mainline (ACN) A319s have 120 seats and most of its 767-300ERs have 211 seats.
rouge launched July 1 with A319 flights to Jamaica, 3 cities in the Dominican Republic, 4 cities in Cuba and 2 destinations in Costa Rica. Initial trans-Atlantic routes include those from Toronto and Montreal to Athens in Greece, and from Toronto to Edinburgh in Scotland and Venice in Italy. Dublin, Ireland is also on the route map.
By the 2013 to 2014 winter season, executives said rouge will add routes to St Kitts, Exuma in The Bahamas, Curacao, 4 cities in Mexico, and the USA cities of Las Vegas, plus Orlando, and Sarasota, Florida.
rouge faced no shortage of competition on those routes, many of which are served by Canadian carriers WestJet (WJI), Sunwing (SWG) and Air Transat (AIJ), plus Caribbean Airlines (TTA) based in Trinidad & Tobago.
August 2013: Air Canada (ACN) reported a second-quarter net loss of -C$23 million/-$22.2 million, narrowed from a -C$161 million net deficit in the 2012 June quarter.
Jazz Air parent, Chorus Aviation reported second-quarter net income of +C$7.9 million/+$7.5 million), down -65.1% from a +C$22.6 million profit in the year-ago period. Nonetheless, “the second quarter delivered solid results,” Chorus Aviation (CFO), Richard Flynn said. Revenue fell -3.8% to C$410.3 million, while expenses lowered -2.9% to C$378.6 million, producing an operating profit of +C$31.7 million, down -12.6% from a +C$36.3 million operating profit in the prior-year quarter.
(ACN) is extending its seasonal daily Montreal - San Francisco A319 service to year-round beginning in November. (ACN) will launch weekly, Toronto - Vail seasonal service December 14 to April 5.
(ACN) will begin taking delivery of the 1st of its 37 new 787s beginning in the 1st quarter of 2014, according to (ACN)'s Executive VP & (CFO), Michael Rousseau.
(ACN) has split its order of 787s between the 787-8 and larger 787-9 variants. Boeing (TBC) will deliver a total of 6 787s in 2014, instead of 7 as originally planned. 1 of the 787s scheduled for delivery in December has been delayed for delivery in January 2015. "Starting in the 1st quarter of 2014, we expect to take delivery of the 1st of 37 787s, comprised of 15 787-8s and 22 787-9s."
The 787s will be used to replace 767s on existing routes, and those airplanes will be reconfigured and transferred to the airline's new leisure subsidiary, Air Canada rouge. The rouge brand was launched earlier this year primarily to fly travelers from locations in Canada to sun markets such as Jamaica and Costa Rica.
Air Canada (ACN) has selected (ARINC) to provide air-to-ground communications for its leisure group airline, Air Canada rouge.
(ARINC) will provide its Globalink voice and data infrastructure for Air Canada rouge. Data link services will be the primary communications option for the leisure airline, providing communications between flight crews (FC)s and ground support, such as Dispatch and Maintenance workers.
The Globalink system will also provide "enroute voice operational control capability" for Air Canada rouge, (ARINC) said.
(ACN) launched its rouge leisure subsidiary July 1, and is now looking to use the same (VHF) data link system that it uses for its non-leisure flights with (ARINC)'s system. According to (ARINC), >300 airlines currently use Globalink for their Aircraft Communications Addressing & Reporting System (ACARS) on 15,000 airplanes worldwide.
rouge (IATA) Code: RV, (ICAO) code: ROU (Call sign - "rouge").
GuestLogix Inc., a global provider of on board retail and payment technology solutions to airlines, won a multi-year payment processing contract with Air Canada (ACN). GuestLogix will provide transaction processing services across multiple in-flight entertainment (IFE) solutions in use by Air Canada (ACN) and Air Canada rouge.
The payment solution will enable Air Canada rouge to monetize the player (IFE) system on board its existing fleet of 767-300 and A319 airplanes, as well as offer secure, (PCI)-compliant payment processing across its entire fleet to enable the sale of premium entertainment content.
GuestLogix may act as the merchant of record in any on board retail scenario that reduces operational complexity and benefits both customers and (ACN).
Diversity of entertainment options is emerging throughout the global airline industry, and GuestLogix is becoming an integral component by integrating seamless, certified, global payment processing capabilities with many of the industry's largest in-flight entertainment and connectivity suppliers and their airline customers.
With the launch of Air Canada rouge, the airline has chosen to offer a brand new form of (IFE), allowing passengers to stream stored movies, television shows and other entertainment content to their personal devices using Panasonic's (eXW) solution. GuestLogix can support both of these (IFE) models in a (PCI)-compliant manner, ensuring payment and sales data is secure. "Based on our research and business plan, it's clear offering customers world-class entertainment at their fingertips through their own mobile devices is the winning solution both for them and for Air Canada rouge," explains Anton Vidgen, Senior Director, Customer & Technology, Air Canada rouge. "Partnering with GuestLogix ensures the security of payment data for our rouge (economy) customers as they use our player entertainment system and as we gradually build out additional retailing capabilities. We know that with GuestLogix, we are using the industry's most proven on board payment technology."
Air Canada (ACN) is studying Bombardier (BMB)’s new CSeries jetliner carefully as it focuses on deciding by the end of the year which narrow-body jets to purchase for its fleet, (ACN) (CEO) said. “It’s a big, big decision because it’s >100 airplanes total,” (CEO), Calin Rovinescu told reporters at the opening of a new Operations Center near Toronto’s Pearson International Airport.
Bombardier (BMB) expects the single-aisle CSeries, with up to 160 seats, to make its 1st test flight sometime in the next few months and to be in service about a year later. It is the 1st all-new narrow-bodied jetliner in decades and will challenge top-selling Boeing 737 and Airbus A320 airplanes.
A big purchase by (ACN) would do much to bolster the CSeries’ disappointing order book. (BMB) had announced 177 firm CSeries orders by late July, well short of its target of at least 300 firm orders by the middle of next year. It failed to firm up new business at this summer’s Paris Air Show even as its competitors announced big orders.
According to (ACN)'s Executive VP & (CFO), Rousseau, (ACN) has financing commitments from Boeing (TBC) to cover 31 of the 37 787 Dreamliners on order.
(ACN) also plans on adding 4 777-300ERs to its fleet by the end of this year for use on international routes.
777-333ER (42219, C-FIVX), delivery.
See video "ACN - CANADA TRAVEL GUIDE" - -
September 2013: Canada has successfully concluded an air transport agreement with Bangladesh, allowing direct scheduled air services between the 2 countries. The agreement provides flexibility for airlines to access all points in Canada and Bangladesh, both for passenger and all-cargo services. Airlines may also choose to offer air services by sharing space on the flights of other airlines through code sharing.
Ed Fast, Minister International Trade, said: "Our government's pro-trade plan is focused on opening new markets for Canadian businesses. Direct air service between Canada and Bangladesh will better connect our business people, students and other travellers which will help us deepen the Canada - Bangladesh partnership."
The agreement allows airlines to offer new services immediately.
Air Canada (ACN) has completed the transfer of all 15 Embraer E175 airplanes to Sky Regional Airlines. Under a capacity purchase agreement, Sky Regional now operates 20 airplanes on behalf of (ACN). The E175s are the smallest airplanes in (ACN)’s fleet.
(ACN) President & (CEO), Calin Rovinescu called the transfer “an important step both in (ACN)’s regional carrier diversification strategy and our ongoing cost transformation program, given that Sky Regional’s cost structure is more in keeping with that of the USA regional carriers.” He said it “allows (ACN) to reduce the cost of it regional lift and thereby to better compete in the rapidly evolving North American regional markets as low-cost carriers (LCC)s continue to grow, both in Canada and the United States.”
Sky Regional has been operating as an Air Canada Express carrier since May 2011, flying Bombardier Dash 8 Q400s in Toronto City and Montreal. The regional has begun E175 service primarily from Toronto and Montreal to LaGuardia, Newark, Boston, Philadelphia, Chicago, and Dallas/Fort Worth.
AirFrance Industries (AFI) (KLM) (E&M) will support Air Canada (ACN)’s 11 new (GE90)s on five 777s. (ACN) had previously chosen (AFI) (KLM) (E&M) to provide exclusive support for 39 (GE90) engines on 18 airplanes.
October 2013: After spending much of 2012 battling labor groups to forge contracts with more favorable terms, including the establishment of its new low-cost carrier (LCC) Rouge, Air Canada (ACN) is enjoying a more peaceful 2013, reflected most recently in its downward revision of cost guidance for the year. At the same time, its stock has more than tripled during the past year as it intensifies its attempts to create a lasting business model.
After touting the highly anticipated launch of its new regional carrier, Encore throughout 2012, (ACN)’s rival WestJet (WJI) has encountered some headwinds in 2013 as its yields and unit revenues have come under pressure and its own capacity additions and an overall increase in domestic supply in Canada have pressured its yields and unit revenue.
As both carriers march towards reporting 3rd Quarter 2013 earnings, Air Canada (ACN) might be beginning to get some traction in its efforts to transform its legacy business model. WestJet (WJI), meanwhile, has warned of continued unit revenue degradation during 3rd Quarter 2013 as it also works to beat back the inevitable cost creep associated with a certain level of maturity.
Air Canada (ACN) and Air China (BEJ) have expanded their commercial co-operation agreement with new code share flights. Currently the airlines, both Star Alliance (SAL) partners, code share on flights operated from Vancouver and Toronto to and from Beijing and Shanghai. The expanded code share agreement will see (ACN) place its code on Air China-operated flights to Guanghzou, Chengdu, Chongqing, Wuhan and Xi'An, and Shenyang via Beijing.
Meanwhile, Air China (BEJ)’s code will be placed on (ACN)-operated flights to six of Canada's major cities: - Edmonton, Calgary, Winnipeg, Toronto, Ottawa and Montreal via Vancouver. "This expanded agreement provides our customers with seamless connections on a single itinerary for travel to six of the most important commercial, transportation and communication centers in Western China, six cities with millennia of history, each an exciting travel and cultural destination in its own right," said Calin Rovinescu, (ACN)'s President & (CEO).
(ACN) offers 21 weekly flights from Toronto and Vancouver to Beijing this summer.
Air Canada (ACN) is undertaking a major expansion of international services to Europe from Toronto, Montreal, Vancouver, and Calgary. (ACN) announced highlights of its Summer 2014 Europe schedule, which includes the introduction of year-round non-stop service from Toronto to Milan, Italy with up to five weekly flights, offering the only non-stop service between Canada and Milan. Flights to this key Italian business destination will feature (ACN)’s award-winning Executive First cabin of service.
Air Canada (ACN) announced summer schedule services beginning June 2014: 5x-weekly, Toronto - Milan 767-300ER service; 3x-weekly, Toronto - Lisbon; 5x-weekly, Toronto - Manchester; 3x-weekly, Montreal - Nice; 2x-weekly, Montreal - Barcelona; from 4x- to 5x-weekly, Toronto - Athens; 3x-weekly, service is increased to daily year-round on Toronto - Istanbul with 767-300s. In July, from 3x- to 5x-weekly, Toronto - Edinburgh. In May 2014, up to 5x-weekly, Toronto - Barcelona; year-round service, Toronto - Dublin; daily, Montreal - Rome.
(ACN) will expand the availability of its new international Premium Economy (PY) cabin with its introduction on Vancouver - London Heathrow flights year-round, as well as Montreal - London Heathrow flights during the peak summer travel season. (ACN) will also deploy larger airplanes from its international wide body fleet on flights from Calgary to London Heathrow and Frankfurt, as well as from Montreal to Brussels and Geneva in order to meet travel and cargo demand during the peak summer season.
As part of the Summer 2014 schedule, (ACN)’s leisure carrier subsidiary, Air Canada rouge, will launch seasonal non-stop flights between Toronto - Lisbon, Toronto - Manchester, Montreal - Barcelona, and Montreal - Nice. The new routes supplement the leisure carrier’s other popular vacation destinations, including previously announced Toronto - Dublin year-round service, as well as holiday and cruise package options offered in conjunction with Air Canada Vacations.
Seats on these new (ACN) and Air Canada rouge flights are now available for purchase at aircanada.com and through travel agents.
As new 777-300ER and 787 airplanes enter the (ACN) mainline fleet, (ACN) will continue growing Air Canada rouge to reach a total of up to 50 airplanes, as demand warrants. The growth of its leisure carrier, in tandem with the mainline fleet renewal and international network expansion, is a key element of (ACN)’s overall strategy for sustainable, profitable growth, both at the mainline and leisure carrier. “The expansion of (ACN)’s global network to include four new European destinations is a significant turning point in (ACN)’s international growth strategy. With the addition of (ACN) mainline service to Milan, a key business center, and Air Canada rouge service to popular holiday destinations such as Lisbon, Nice, and Manchester, we are offering customers great new options when making their travel plans beginning next summer,” said Ben Smith, Executive VP & Chief Commercial Officer (CCO). “Since the launch of our Toronto - Istanbul non-stop service in June 2013, customer response has been very positive and we look forward to increasing to daily flights with convenient connections throughout the Middle East, Africa, and South Asia.
“The growth of (ACN)’s international network, within forecasts previously announced, is possible due to our ability to deploy capacity and continue growing at significantly lower incremental cost. Air Canada rouge’s successful inaugural season underscores its growing popularity among vacation- goers. Similarly, the introduction of our new international Premium Economy (PY) cabin has also met with extremely positive customer feedback and we are pleased to continue its introduction with our five specially-configured 777-300ERs on routes such as Vancouver - London and Montreal - London, where market demand calls for a larger supply of Economy (Y) and Premium Economy (PY) seats, in addition to continuing to offer Executive First business class service.
“As Canada’s preferred airline by business (C) travellers, and voted Best Airline in North America for the fourth consecutive year, we are pleased to offer a wide range of premium products as well as high value options together with Air Canada rouge. We will continue leveraging (ACN)’s strengths in fleet, product and network while responding to demand on both a price and cost competitive basis to serve customers across Canada and around the world,” concluded Mr. Smith.
(ACN) will have taken delivery of five new 777-300ERs for the mainline fleet between June 2013 and February 2014, and the first three of 37 787 airplanes by the summer of 2014. (ACN) is scheduled to take delivery of six 787-8s in 2014 and the remaining 31 787-8 and -9s between 2015 and 2019.
For the summer 2014 season, Air Canada rouge will continue to operate Toronto - Venice, Toronto - Edinburgh and Toronto/Montreal - Athens after their successful inaugural season in 2013.
All Air Canada rouge flights to Europe are operated with Boeing 767-300ER airplanes featuring a two-cabin configuration with three customer comfort options including rouge, rouge Plus with preferred seating with additional legroom, and, beginning in winter 2013, Premium rouge offering both additional room and enhanced service. By the Summer 2014 season, the Air Canada rouge wide body fleet will consist of eight 767-300ER airplanes. All flights offer customers streamed wireless in-flight entertainment, standard 110 volt power plugs and (USB) ports (beginning spring 2014), stylish and modern cabin interiors with innovative new seats, and the ability to earn and redeem Aeroplan miles.
Air Canada Rouge will add year-round, mainline service from Toronto to Milan with up to five flights per week beginning June 18 on 767-300ER airplanes. No other carriers fly the route. Air Canada’s leisure carrier Rouge will also introduce new seasonal service three times per week between Toronto and Lisbon beginning on June 21, pending regulatory approvals. The service will last through September 21. Competition will come from charter airline Air Transat (AIJ) and Portuguese carrier (SATA). Rouge will also perform thrice-weekly service between Montreal and Nice, France between June 5 and October 13. The airline will also begin flying five times per week between Toronto and Manchester on June 26, with flights lasting until September 13. Rouge flights between Montreal and Barcelona will begin on June 4, 2014 and last until October 11, 2014, subject to regulatory approvals. Air Transat (AIJ) flies unchallenged on those routes today.
Air Canada rouge will offer 5x-weekly Toronto - Barcelona from May 8 - October 19, 2014; Toronto - Dublin begins May 1 and Montreal - Rome is offered daily from May 23 - October 19.
Rouge may eventually operate up to 20 767-300ERs and 30 Airbus A319 narrow bodies, (ACN) has said.
As Air Canada (ACN) receives new 787s starting in the first quarter of 2014, it is moving 767-300ERs to leisure carrier Rouge. It plans to take delivery of 15 787-8s and 22 787-9s between 2014 and 2018 but has not yet outlined which specific routes the aircraft will fly.
Rouge may eventually operate up to 20 767-300ERs and 30 A319 narrow bodies, (ACN) has said.
(ACN) is also adding five new high-density Boeing 777-300ERs through February 2014. (ACN) has taken delivery of two of the airplanes so far, which are flying between Montreal and Paris, and Toronto and Munich. The latter route will be switched with Vancouver - Hong Kong on November 16th.
Starting June 2014, (ACN) will add a fifth flight per week between Toronto and Athens. Flights between Toronto and Edinburgh will increase from three times per week to five times per week starting in July 2014.
The Toronto - Istanbul route launched in June will increase from three flights per week to daily service with a Boeing 767-300ER beginning in June 2014.
An additional flight from Montreal to Frankfurt with five weekly frequencies will be added in May through a code share flight through Star (SAL) Alliance partner, Lufthansa (DLH).
Air Canada will upgauge the Montreal - Brussels, Toronto - Rome, and Montreal - Geneva flights from 767-300ERs to A330-300s.
(ACN) will also upgauge flights from Montreal and Calgary to London Heathrow, and from Calgary to Frankfurt, to three-class 777-300ERs beginning June 15. Those flights are currently operated with A330-300s.
Vancouver - London Heathrow will also be upgauged to 777-300ERs.
Air Canada (ACN) closed its approximate $1.4 billion secured refinancing, which is aimed at reducing (ACN)'s interest burden and cost structure. The deal is split between a $300 million senior secured term loan that matures in 2019 and a $100 million, four-year revolving credit facility, and an about $1 billion private placement.
The private placement is split between a $400 million 6.75% senior secured first lien notes due 2019, a Canadian dollar (C$) 300 million ($290.9 million) 7.625% senior secured first lien notes due 2019, and a $300 million senior secured second lien notes due 2020. “The successful refinancing of our 2010 notes is another important milestone in achieving our stated priorities,” said Michael Rousseau, Executive VP & (CFO) of (ACN). “It significantly lowers our cost structure, strengthens our balance sheet and improves our credit profile." He adds that the refinancing reduced (ACN)’s effective weighted interest rate by about 300bp and extended its debt maturities by four years to the end of the decade.
Proceeds will be used to repay its $600 million 9.25% senior secured notes due 2015, C$300 million 10.125% senior secured notes due 2015 and $200 million 12% senior second lien notes due 2016, which were tendered under a separate cash tender. JP Morgan is lead bookrunner on the US dollar denominated notes, and TD Securities is lead on the Canadian dollar notes. Citi is the lead on the term loan and revolver.
Jazz Aviation has appointed Kal Rebin as VP Maintenance & Engineering, effective immediately. In his new role, which is based in Toronto, he will be responsible for the overall management and direction of Jazz’s Maintenance & Engineering division.
Banking on expected growth in the USA transborder and international markets, Montréal-Trudeau International airport has rolled out several projects to capture more passengers. Airport operator Aéroports de Montréal (ADM) expects passenger traffic to grow an average of +2.7% over the next five years.
Last month, (ADM) debuted automated passport control kiosks for passengers travelling to the USA. The 12 kiosks, costing $1 million, were completely paid for by the airport operator as it aims to improve passengers’ experience when flying across the border. Like most major Canadian airports, Montreal-Trudeau International is equipped with a USA Customs & Border Protection (CBP) pre-clearance facility, which allows USA-bound passengers to clear USA immigrations and customs in Canada itself. The kiosks, located at the pre-clearance area, help to speed up this process. Catering for holders of USa and Canadian passports, the kiosks verify a traveller’s passport details, identity and flight details. A passenger’s photo is taken at the kiosk and his or her passport is digitized. After a traveller is cleared by the kiosk, he or she receives a printed receipt which is verified by a USA (CBP) officer. The traveller can then immediately proceed to his or her gate.
Previously, passengers had to stand in line at counters to be cleared by USA (CBP) officers: – a process that often led to long waits.
With the automated kiosks, the time taken by a passenger from entering the security screening line to clearing customs is slashed to about 20 minutes from an hour and 30 minutes during peak periods previously. (ADM) is also in the process of adding six new gates at its international concourse, taking the number of gates there to 17. The new gates, equipped to handle wide body airplanes, are scheduled for completion in the fall of 2016. Two of the gates can handle the Airbus A380.
SEE ATTACHED - - "ACN-2013-10 - 787 DEAL."
November 2013: Air Canada (ACN) reported a third-quarter net income of +C$299 million/+$290 million, a -16.7% drop from the net income of +C$359 million in the year-ago period.
Jazz Air parent, Chorus Aviation reported a third-quarter net income of +C$36 million/+$34.9 million, down -2.5% from +C$36.9 million net profit in the year-ago period.
Air Canada (ACN) and Cargojet (CJT) have signed a new agreement to pursue Canadian and international airfreight and passenger expansion, the two carriers said. Under the new agreement both carriers will look to reduce operating costs and expand interline opportunities as well as increase cooperation on global sales and marketing. The new initiatives are subject to regulatory approvals, (ACN) said. Cargojet (CJT) currently controls more than >50% of Canada's domestic air cargo operations, and (ACN) is the nation's largest domestic and international passenger carrier.
"We are very pleased to be in discussions with Cargojet (CJT) to explore opportunities for revenue growth and synergies that will be mutually beneficial for both our companies and customers," said Lise-Marie Turpin, VP Cargo Division (ACN).
2 A319-114s (0650, C-FYJE; 0688, C-FYJP), ex-(D-AVYZ & D-AVYJ), deliveries to Air Canada Rouge ((IATA) Code: RV; (ICAO) Code: ROU - (Callsign - ROUGE).
December 2013: Air Canada (ACN) is offering its passengers two new seasonal routes, one for ski enthusiasts and one for winter sun lovers. On December 14th (acn) launched weekly flights on the 2,310 km route from Toronto (YYZ) to Eagle/Vail, Colorado (EGE), and on the 2,565 km route from Halifax (YHZ) to Fort Lauderdale, Florida (FLL). An A319 is used on the Colorado route, which operates until April 5th, while an EMB-190 serves the Florida route until April 26th. No other carrier serves either route. This year, Eagle County Regional Airport expects to handle around 350,000 passengers, up around +3% on last year’s figure.
Air Canada rouge will assume Air Canada (ACN)’s Montreal - Las Vegas route from March 13 with 10x-weekly service. Rouge will also begin 3x-weekly, Nice - Montreal 767-300ER service June 6 - October 13, 2014.
Air Canada (ACN) has selected Rockwell Collins’ DispatchSM 100 avionics service and asset management program for its new fleet of 37 Boeing 787 Dreamliners, which are scheduled to be delivered starting in 2014.
Under the agreement, Rockwell Collins will provide (ACN) with guaranteed spares availability, systems configuration updates, technical repairs and performance monitoring on Rockwell Collins’ comprehensive suite of communications, surveillance, displays and pilot (FC) controls systems. The total life cycle solution is coordinated by a dedicated Program Manager.
Lufthansa Technik (DLH) (LTK) will provide total component support (TCS) for Air Canada (ACN)’s Boeing 787s for 12 years.
Air Canada (ACN)’s new Boeing 787-8s will feature three cabins with 251 seats. The 787 will be divided into international business class (C), premium economy (PY) and economy (Y) cabins in a color scheme based on grey and neutral colors accented with red and blue. The new interior product will be featured on (ACN)'s 787-8s entering the fleet in 2014 and the larger 787-9s that it will start to receive in 2015.
The international business class (C) cabin on the 787-8 will feature 20 “executive pods” with B/E Aerospace lie-flat seats in a 1-2-1 configuration. The seats feature headrests with pneumatic cushions and a massaging function and will offer aisle access. Each business (C) class pod will include an 18in screen with touch handsets for Panasonic Avionics' in-flight entertainment system, as well as (USB) and universal power outlets. SEE ATTACHED - - "ACN-2013-12 - 787 C CLASS-A/B."
(ACN)'s premium economy (PY) cabin on the 787-8 will be outfitted with 21 Recaro seats in a 2-3-2 configuration with a 38 inch pitch. The seats measure 19.5 inch wide and provide 7 inch of recline. The premium economy (PY) seats will have 9 inch or 11 inch touchscreens for in-flight entertainment (IFE) and power. (ACN) will offer extra perks for premium economy (PY) passengers for meals and beverage service, as well as priority check-in and baggage delivery. SEE ATTACHED - - "ACN-2013-12 - 787 PY CLASS."
The economy (Y) cabin is configured with 210 slimline B/E Aerospace seats in a 3-3-3 configuration, with a 31 inch pitch. Economy (Y) passengers will have 9 inch touchscreens for (IFE) and in-seat power. SEE ATTACHED - - "ACN-2013-12- 787 7 CLASS."
Air Canada (ACN) has announced an agreement that includes commitments, options and rights to purchase up to 109 737 MAXs. (ACN)
said the order “includes firm orders for 33 737 MAX 8 and 28 737 MAX 9 airplanes with substitution rights between them as well as for the 737 MAX 7 airplane. It also provides for options for 18 airplanes and rights to purchase an additional 30. Deliveries are scheduled to begin in 2017 with two airplanes, 16 airplanes in 2018, 18 airplanes in 2019, 16 airplanes in 2020 and nine airplanes in 2021, subject to deferral and acceleration rights.”
When finalized, Boeing (TBC) said the order is expected to be worth $6.5 billion at current list prices.
777-333ER (43249, C-FNNU), delivery.
January 2014: Air Canada rouge will take over some Caribbean destinations from Air Canada (ACN) and increases seats by +22% over last summer. Services from Montreal and Toronto to Cuba, Dominican Republic, Bahamas, Barbados, Haiti, Cancun, and Tampa, Florida, will be flown with rouge 767-300ER and A319 airplanes. There will be an increase in Montreal - Cancun, - Port-au-Prince and – Punta Cana service by +20%.
February 2014: Air Canada (ACN) has posted full-year 2013 net income of +C$10 million/+$9.3 million), a +C$146 million improvement on the -C$136 million net loss (ACN) reported for the previous year.
Jazz Air parent, Chorus Aviation reported a net income of +C$61.9 million/+$57.8 million for 2013, down -38.3% over >+C$100.2 million in 2012.
Full-year revenue for the Halifax-based regional carrier was C$1.67 billion, down -2.3% year-over year from C$1.71 billion recorded in 2012. Expenses were trimmed 2.3% year-over-year to C$1.55 billion from C$1.58 billion in 2012. The resulting operating income for the full-year was C$124.3 million, down -2.5% from a 2012 operating income of C$127.4 million.
The company reported adjusted net income for the year of +C$84.7 million, or C$0.69 per basic share, down -10.5% compared to 2012’s adjusted net income of +C$94.6 million, or C$0.76 per basic share. It said the year’s adjusted net income was “impacted by C$9.9 million in voluntary employee severance costs which were offset by savings of C$2.7 million in reduced salaries, benefits, training and other costs.”
“ revenue decreased as a result of no activity for Thomas Cook in 2013 [the Flight Services Agreement to operate dedicated charter airplane service Thomas Cook Canada was terminated in April 2012] and decreased Capacity Purchase Agreement (CPA) billable block hours,” Chorus Aviation said. “Net income decreased due to the unrealized foreign exchange loss on long-term debt and finance leases and increased interest expense related to the Bombardier DHC-8-Q400 airplane and engine financing.”
Chorus’ (ASM)s in 2013 were 5.7 billion, down -2% year-over-year. (CASM) was 27.17 (up +0.5%) while (CASM) ex-fuel was 20.52 (up 0.7% from 2012). Fuel expenses for the year were C$379 million, down -4.4% from 2012.
Chorus’ fourth-quarter net income was +C$8.76 million, down -39.4% from a +C$14.5 million profit in the year-ago December quarter. Revenue rose +0.4% to C$413.2 million, while expenses fell -1.5% to $380.8 million, producing an operating profit of +$32.5 million, up +29.2% from +$25.1 million in 2012’s fourth-quarter.
(ACN)'s first 787-8 (35257, C-GHPQ), rolled out from the Boeing Everett paint hangar - - SEE PHOTO - - "ACN-787-8-2014-02."
March 2014: Air Canada (ACN) has suspended Venezuela flights, saying it can't assure safety. (ACN) decided to suspend its flights to and from Venezuela as anti-government protests continue to rattle the South American country. "(ACN) will continue to monitor the situation and will evaluate the re-introduction of flights with the objective of resuming operations on the route once (ACN) is satisfied that the situation in Venezuela has stabilized."
(ACN) and travel agents have started notifying affected customers. (ACN)'s reservations and ticketing office in Caracas remains open.
(ACN) said affected ticket-holders can obtain refunds while those who are mid-travel also have the option to be rebooked on other airlines at no additional charge.
(ACN)'s suspension came just a few days after Venezuelan President Nicolas Maduro said any airline that reduced or suspended flights in and out of Venezuela would face severe measures. Maduro said any airline that leaves won't be allowed back, while he is in power.
Demonstrations have erupted in numerous parts of Venezuela during the past month over crime and a deteriorating economy. Protesters have been voicing their dissatisfaction with inflation that hit 56% last year, soaring violent crime and shortages of basic necessities such as corn flour and cooking oil. In a part of the capital, peaceful daily protests have devolved each afternoon into violent clashes with tear gas, rubber bullets, water cannon and Molotov cocktails.
Only a small segment of the demonstrators stick around for the skirmishes, but the damage wreaked by an even smaller subgroup has been highly publicized on state television.
Air Canada (ACN) services will shift to rouge Airbus A319 services: daily, Vancouver - Las Vegas on April 28; 4x-daily, - Los Angeles on May 1; daily, - Anchorage on May 16; 4x-daily, - San Francisco on July 1; daily, – Phoenix on December 17. Services shift from Calgary: daily, - Las Vegas on April 28; 2x-daily, - Los Angeles on May 1; daily, - Phoenix, on December 17. Services on Toronto: daily, - San Diego has begun; daily, – Phoenix on May 4, increasing to 3x-daily for winter season.
Air Canada Rouge ((IATA) Code: RV, (ICAO) Code: ROU) 767-333ER (25585, C-FMWU) equipped with blended winglets arrived at Toronto Lester B Pearson International Airport, after its delivery flight from Singapore, where it was painted and equipped with the winglets - - SEE PHOTO - - "ACN-767-333ER-2014-03."
April 2014: Air Canada (ACN) is the first non-USA carrier to participate in the USA Transportation Security Administration (TSA) Pre-Check program, which expedites screening for approved passengers.
(TSA)’s Pre-Check program now includes 115 airports nationwide and 10 carriers: Air Canada (ACN), Alaska Airlines (ASA), American Airlines (AAL), Delta Air Lines (DAL), Hawaiian Airlines (HWI), JetBlue Airways (JBL), Southwest Airlines (SWA), United Airlines (UAL), US Airways (AMW)/(USA), and Virgin America (VUS).
(TSA) Pre-Check is an expedited screening program that allows pre-approved passengers to leave their shoes, light outerwear and belts on. Through this program, passengers can also keep their laptops and 3-1-1 compliant liquids/aerosols/gels in their carry-on bags.
(ACN) Executive VP & (CCO), Benjamin Smith said, “(ACN) serves the most passengers with the most daily flights of any non-USA carrier in the USA. (TSA) Pre-Check will make our customers’ travel experience with us even more enjoyable, including those connecting through our main hubs in Toronto, Montreal and Vancouver to international destinations in Asia and Europe.”
USA Ambassador to Canada, Bruce Heyman said, “(TSA) Pre-Check is one of many innovative measures we are taking to achieve our goal of improving the efficiency of our border, facilitating trade and travel, and protecting the safety of the traveling public. This is consistent with the vision of President Obama and Prime Minister Harper in their "Beyond the Border" initiative, and the fact that a Canadian airline is the first international partner, speaks to the closeness of our relationship and the importance of our work managing our common border.”
Passengers who are eligible for (TSA) Pre-Check include members of the (TSA) Pre-Check application program, USA Customs & Border Protection (CPB) Trusted Traveler program, Global Entry, and Canadian citizens who are members of (CBP)’s NEXUS program. (TSA) Pre-Check is also available for USA Armed Forces service members, including those serving in the USA Coast Guard, Reserves and National Guard.
Air Canada (ACN) has reached an agreement with airplane communications service provider Gogo to equip all of its North American fleet with in-flight Wi-Fi connectivity.
(ACN) currently has two Wi-Fi-equipped Airbus A319s operating in Canada and the USA. Under the agreement, financial terms of which were not disclosed, Gogo in May will begin outfitting the rest of Air Canada (ACN)’s A319s as well as the carrier’s A320s, A321s, Embraer (EMB) E190s, E175s and Bombardier (BMB) CRJ700s with its air-to-ground Wi-Fi connectivity.
Air Canada (ACN) said the plan is to equip 29 airplanes in 2014 and have all 130 of its narrow body/regional airplanes equipped by the end of 2015. “The system offers peak connection speeds comparable to mobile broadband services available on the ground,” (ACN) said. “Pricing will be competitive with other in-flight Wi-Fi connectivity offerings.”
Air Canada Executive VP & (CCO), Benjamin Smith said, “In today’s connected world, our customers want access to email, mobile device applications and the internet wherever they are, both to increase their work productivity and expand their leisure options.”
Additionally, Gogo said the agreement “also provides for future type-testing of Gogo satellite solutions for Wi-Fi on [Air Canada] international flights. The international trials will take place in 2015.”
(ACN) has signed an agreement with Boeing (TBC) to implement the Boeing Maintenance Performance Toolbox to support maintenance operations for its 767, 777, 787 and 737 MAX fleets.
(ACN) has finalized an order for 61 Boeing 737 MAX airplanes as part of its single-aisle fleet renewal program. The order, valued at $6.5 billion at current list prices, is part of an agreement for 109 airplanes announced in December, comprising 33 737 MAX 8s and 28 737 MAX 9s, as well as 18 options and 30 rights to purchase additional 737 MAXs. “Our narrow body fleet renewal program with the 737 MAX is expected to yield significant cost savings and is a key element of our ongoing cost transformation program,” (ACN) President & (CEO), Calin Rovinescu said. “Projected fuel and maintenance cost improvements of more than >20% per seat will generate an estimated (CASM) reduction of approximately -10% compared to our existing narrow body fleet. In addition, the 737 MAX offers improvements to the environment, making this the best choice for Air Canada (ACN).” - - "SEE ATTACHED - - "ACN-737-MAX 8-737 MAX 9-2014-04."
May 2014: Air Canada (ACN) incurred a first-quarter net loss of -C$341 million/-$312.8 million, widened from a -C$260 million net loss in the year-ago quarter.
(ACN)’s first-quarter (EBITDAR) was C$147 million, up +1.4% from C$145 million in the first quarter of 2013. In the first quarter, (ACN) recorded an operating loss of -C$62 million, narrowed from an operating loss of -C$106 million. First-quarter operating revenue was C$3.1 billion, up +3.8% from C$2.95 billion in the year-ago period. Expenses for the quarter were C$3.13 million, up +2% year-over-year, which (ACN) attributed to the weak Canadian dollar.
President & (CEO), Calin Rovinescu said that, “Despite the challenges of several extreme weather events and the impact of a much lower Canadian dollar in the first quarter, we delivered improved (EBIDAR) and adjusted results over the previous year. During this somewhat difficult quarter, we continued to make good progress on our cost transformation initiatives with adjusted (CASM) decreasing by -2.5% and, nonetheless, achieved a solid revenue performance. Based on forward bookings, we expect a strong summer travel season ahead.”
First-quarter traffic was up +2.9% to 13.5 billion (RPM)s on a +3.8% increase in capacity to 16.8 billion, producing a load factor of 80.3% LF, down -0.7 point. Adjusted (CASM) was 12.2 cents, down -2.5%.
Jazz Air parent, Chorus Aviation reported first-quarter net income of +C$5.6 million/+$5.1 million, down -39.1% from +C$9.2 million net profit in the year-ago March quarter.
Revenue slipped -0.4% to C$414.6 million, while expenses decreased -3.1% to C$383.3 million, resulting in an operating profit of +C$31.2 million, up +50% from the +C$20.8 million operating profit Chorus reported in 2013’s first-quarter.
The company reported adjusted net income for the first-quarter of +C$20.3 million, or C$0.17 per basic share (up +C$0.05 per basic share year-over-year), a +38% increase compared to first-quarter 2013’s C$14.7 million. The quarter’s adjusted net income was impacted by C$2.8 million in voluntary employee severance costs.
Chorus’ first-quarter (ASM)s were 1.3 billion, down -5.4% year-over-year. (CASM) was C$0.2911 (up +2.4%), while (CASM) excluding airplane fuel was C$0.2186 (up +1.8%). Fuel expenses for the first-quarter were C$95.5 million, down -1.3% from the year-ago quarter.
As of March 31, 2014, Chorus Aviation’s fleet consists of 125 operating airplanes: 42 regional jets (26 Bombardier CRJ200s and 16 CRJ705s) and 83 turboprops (21 Bombardier Dash 8 Q400s, 28 DHC-8-300s and 34 DHC- 8-100s).
Rovinescu said (ACN) will take delivery of the first of 37 Boeing 787s on May 18, which he called “a very important step in Air Canada (ACN)’s fleet renewal that will provide further cost improvements and opportunities to develop international markets on a more competitive basis.”
(ACN) plans to launch 3x-weekly, Toronto - Rio de Janeiro service from December 11. (ACN) will operate the flights with a Boeing 767-300ER configured with 24C business class seats and 187Y economy seats. Rio de Janeiro will become Air Canada (ACN)’s second destination in Brazil. (ACN) currently operates daily, Toronto - São Paulo flights.
(ACN) noted it will become the only carrier operating flights between Canada and Rio de Janeiro. “This new service is timed for convenient connections to our network at our Toronto Pearson hub, including to Tokyo Haneda, Hong Kong, Beijing, and Shanghai, and further expands Air Canada (ACN)’s global reach from Toronto.”
The service will operate on Tuesday, Thursday and Saturday from Toronto to Rio de Janeiro Galeão International Airport and Wednesday, Friday and Sunday from Rio de Janeiro to Toronto.
Transport Canada has cleared the use of portable electronic devices (PEDs) by airline passengers “during all phases of flight.” The decision by the Canadian government aviation authority follows a similar relaxation of the rules governing the use of (PED)s on commercial flights made last year by the European Aviation Safety Agency (EASA) and the (FAA).
Transport Canada said passengers on Canadian airlines will be able to use devices such as smartphones, cameras, electronic games, tablets and computers, “while an aircraft takes off, climbs, descends and lands, provided the device is in non-transmitting, or flight mode, and that their airline has met certain safety conditions outlined by Transport Canada.”
Calgary-based WestJet (WJI) said it expects passengers will be able to use (PED)s gate-to-gate by “early this summer.”
Montreal-based Air Canada (ACN) said it is “finalizing measures to safely implement the new procedures so customers can enjoy greater use of their (PED)s.”
Canadian Transport Minister, Lisa Raitt said, “By collaborating with our aviation partners, we are able to offer airlines the tools they need to safely enable passengers to use portable electronic devices (PED)s on airplanes, while still maintaining the highest standards of aviation safety.”
Air Canada has taken delivery of it first Boeing 787-8 Dreamliner. The 787, the first of (ACN)'s 37 787s on order for delivery through 2019, departed Paine Field in Everett, Washington State on May 18th on its delivery flight to Toronto. “The 787 Dreamliner will immediately make a dramatic improvement to our fleet capabilities,” (ACN) President & (CEO), Calin Rovinescu said. “The improvement in fuel use is extremely exciting for us. The range and economics unlock new destinations for customers, who will love the innovative look and comfort onboard.”
(ACN) has announced it will use the 787 on its Toronto - Tel Aviv routes, as well as launch a new destination (Tokyo’s Haneda Airport). The 787 is +20% more fuel efficient than the Boeing 767s it will replace.
The airline has ordered 15 787-8s, including the launch delivery airplane, and 22 787-9s, all powered by General Aviation (GEnx) engines.
As part of its 787 deal, (ACN) will receive Flight and Maintenance training and in-flight pilot (FC) training services from Boeing (TBC).
To see a video of (ACN)'s 787 arrival, click here: http://stream1.newswire.ca/cgi-bin/playbackhttp.cgi?file=20140518_C8921_...
Air Canada (ACN) has debuted its new international interior as the three-class, 251-seat Boeing 787 launches service. The new international business (C) class features lie-flat executive pods with a pneumatic cushion system that when extended to the lie flat position, provides 203cm/80 inch of length. The cushions headrest also offers a massage feature, a unique feature found for the first time in business (C) class.
The Panasonic 18 inch personal entertainment screen with a touch handset is the largest in a North American carrier, as well as power and (USB) outlets. Business (C) class cabin seats are configured in a 1-2-1 configuration.
Business (C) class passengers also have access to a bar area located just aft of the business (C) class cabin. The 787 cabin contains 20C business class seats, 21PY premium economy, and 210Y economy seats.
The cabin will be rolled out in all new 787’s, and be installed on the original Boeing 777-300ER airplanes, although not the 5 newer high density configured airplanes.
Although offered on (ACN)’s narrow body fleet, wireless Internet access is not being currently deployed to its wide body fleet, including the 787 Dreamliner, and they are not committing to deploying it in the future.
(ACN) also launched a new marketing campaign with the arrival of the 787 Dreamliner. The slogan “Your World Awaits” will serve as (ACN)’s new tagline, and be prominently featured in all advertising and branding.
(ACN) will wet-lease two 767-300ERs from euroAtlantic Airways (MAE) covering the period July 1 to August 6, 2014. (ACN) said the need for additional equipment was as a result of the late delivery of the airline's new 787-8s. The 767s will be deployed on flights from Toronto Pearson to Bogotá, Lima, and Madrid Barajas.
June 2014: Air Canada (ACN) has moved to London Heathrow (LHR) Airport’s new Terminal 2, which opened June 4 following a £2.5 billion/$3.8 billion upgrade. According to (ACN), the new facilities offer an improved travel experience, including faster customs and immigration border control upon arrival and check-in, as well as security clearance on departure. Eligible (ACN) and Star (SAL) Alliance customers will have access to (ACN)'s newest international "Maple Leaf Lounge."
“With over >20 daily (ACN) departures and arrivals, London Heathrow (LHR) is our largest international operation,” (ACN) Executive VP & (CCO) Benjamin Smith said. “Now that all (SAL) Alliance members are in a single terminal for the 1st time, our customers will benefit from more choice and easier connections across Europe, the Middle East, and Africa.”
(ACN) said its check-in and baggage drop off are located in Zone A of the check-in lobby and offer the latest technology, including quick and easy self-service kiosks, fast baggage drop-off and dedicated full-service check-in counters. The new terminal provides a wide variety of shopping, dining and seating options.
Over the next 6 months, all 23 (SAL) Alliance member carriers serving (LHR) will progressively move to Terminal 2, including Aegean Airlines (CRM), Austrian Airlines (AUL), Brussels Airlines (DAT)/(EBA), Croatia Airlines (CRH), Egyptair (EGP), Ethiopian Airlines (ETH), (LOT) Polish Airlines, Lufthansa (DLH), Scandinavian Airlines (SAS), South African Airways (SAA), Swiss International Airlines (CSR), and Turkish Airlines (THY), in addition to code share partner Aer Lingus (ARL).
On June 4, United Airlines (UAL) became the 1st airline to operate out of Terminal 2.
Air Canada (ACN) has appointed Duncan Bureau as VP Global Sales. He is former Malaysia Airlines (MAS) Senior VP Global Sales & Distribution and WestJet (WJI) VP Sales & Distribution.
(ACN) has assigned fleet Premier Aviation Overhaul Center Inc to maintain its 45 Embraer E190 airplanes, by issuing a 5-year, exclusive contract for airframe heavy maintenance support. Premier Aviation staff will perform scheduled heavy maintenance at the company’s maintenance, repair, & overhaul (MRO) facility at the Trois-Rivieres Airport in Quebec, Canada.
(ACN) commenced its 4th service to Italy, this time linking Toronto Pearson (YYZ) to Milan Malpensa (MXP) on June 18th. The 6,629 km sector to the primary gateway of Milan will be served 5x-weekly, utilizing (ACN)’s 209-seat 767-300s. However, during the winter period, this service will see a frequency decrease to 3x-weekly. There is no competition (ACN)’s new airport pair.
Air Canada Rouge added its 11th European route with the addition of seasonal services from Toronto Pearson (YYZ) to Lisbon (LIS) on June 21st. The 5,755 km sector to the capital of Portugal will be served 3x-weekly until September 21st, utilizing rouge’s 280-seat 767-300s. Air Canada rouge will face direct competition on its latest addition from Air Transat (AIJ)’s 3x-weekly flights and (SATA) International (SAP)’s weekly operations.
Air Canada (ACN) is Canada's largest domestic and international airline serving >180 destinations on 5 continents.
July 2014: Air Canada (ACN) has launched service between Toronto and Tokyo-Haneda Airport. The year-round service is the only nonstop flight between the 2 cities. It complements (ACN)’s daily Toronto - Tokyo Narita service, 3x-weekly (increasing to daily during the summer), Calgary - Narita service, and daily, Vancouver - Narita service.
The Tokyo-Haneda service will launch using a 777-300ER airplane and transition in mid-July to the 787, making it (ACN)’s 1st scheduled route for the new airplane, which was delivered in May.
August 2014: News Item A-1: Air Canada (ACN) reported a +C$223 million/+$203.6 million 2nd-quarter net profit, reversed from a net loss of -C$23 million in the year-ago quarter, and a loss of -C$341 million in the 1st quarter of 2014. “I am pleased to report that (ACN) delivered its best 2nd-quarter financial performance in the corporation’s history, surpassing last year’s records in all 3 measures of operating income, adjusted net income and (EBITDAR),” (ACN) President & (CEO) Calin Rovinescu said.
2nd-quarter (EBITDAR) was C$456 million for the quarter, up +18.4% over the C$385 million reported in the 2nd quarter of 2013.
(ACN) reported 2nd-quarter operating revenues of C$3.3 billion, up +7.5% year-over-year. Operating expenses rose +6% to C$3.06 billion to produce an operating income of C$245 million, compared to C$174 million in the 2nd quarter of 2013.
Traffic rose +9.9% to 15.5 billion (RPM)s on a +8.5% increase in capacity to 18.4 billion (ASM)s, producing a load factor of 84.2% LF, up +1.1 point for the quarter.
Yield dipped -2.1% to 18.9 cents as (PRASM) lowered -0.8% to 15.9 cents and (CASM) decreased -2.2% to 16.6 cents.
For the 1st 6 months of 2014, (CASM) was 17.58 cents, down from the 17.93 cents recorded in the 1st 6 months of 2013. (CASM) excluding fuel was 11.66 cents, down from 12.10 cents on 2013’s 1st 6 months.
Rovinescu credited the company’s best quarter with improvements in all 5 markets, better-than-expected performance from Air Canada rouge and (CASM) decrease of -4.7% over (ACN)’s 1st-quarter costs.
News Item A-2: Chorus Aviation, parent of Canadian regional airline, Jazz, posted 2nd-quarter net profit of +C$36.5 million/+$34.2 million, more than quadrupling its 2nd-quarter 2013 net income of +C$7.9 million.
Chorus’ operating revenue grew +1.8% year-over-year, to C$417.8 million, as expenses increased +1.3% to C$383.6 million, leaving an operating income of C$34.3 million (a +8.1% improvement on the year-ago June quarter).
During the quarter, Chorus’ voluntary employee severance program cost the company C$4.5 million. Subsequently, Chorus reported adjusted net income for the 2nd-quarter of C$22.2 million (up +3.6% year-over-year), or C$0.18 per basic share (up +5.9%).
Operating as Air Canada Express under a capacity purchase agreement through 2020 with Air Canada, Jazz’ fleet as of June 30, comprised 125 Bombardier airplanes, including 16 CRJ705 regional jets, 26 CRJ200s (1 operated as a charter), 21 Bombardier Dash 8-Q400 NextGen turboprops, 28 DHC-8-300s (2 operated as charters) and 34 DHC-8-100s.
News Item A-3: Air Canada rouge begins winter, 3x-weekly, Vancouver - Palm Springs Airbus A319 service from December 18, 2014 to April 12, 2015.
New Item A-4: Air Canada (ACN) announced that Executive VP & (CCO), Benjamin Smith has been appointed as President Passenger Airlines. In addition to his current responsibilities, Ben will now have cost as well as revenue oversight for passenger airline activities.
News Item A-5: (ACN) took delivery of 2 of an order of 37 Boeing 787 Dreamliners in the 2nd quarter.
The 3rd 787 was taken into the fleet in July. “The renewal of our international fleet with these next-generation airplanes will provide us with significant improvements in fuel efficiency and allow us to offer customers superior comfort and amenities. We look forward to realizing the full benefits of our international fleet renewal as new airplanes enter the mainline fleet,” Rovinescu said.
October 2014: News Item A-1: Air Canada (ACN) is adding considerable capacity between Eastern Canada and Europe, as Calgary-based low-cost carrier (LCC) competitor WestJet (WJI) is expected to expand into the trans-Atlantic market within the next 2 years. (ACN) announced it has grown trans-Atlantic (ASM)s +15.8% so far this year. (ACN) has also grown its transborder capacity +8.5% and domestic capacity +4.4%, but no other region matches the European expansion. Overall capacity for the year is up +7.5%.
(ACN) begins 6x-weekly, Toronto - Amsterdam Boeing 767-300ER service in June 2015. (ACN) is increasing Paris service offering 2x-daily, Montreal - Paris (CDG) summer seasonal service June - September.
News Item A-2: Air Canada rouge begins seasonal, Montreal - Venice and Vancouver - Osaka service. Air Canada rouge, Montreal - Athens doubles to 4x-weekly, and – Barcelona increases to 3x-weekly for summer service.
News Item A-3: (ACN) has reached a tentative agreement with the leadership of its pilots (FC) union on a 10-year labor contract.
Leadership of the Air Canada Pilots Association (ACPA), which represents 3,000 (ACN) pilots (FC), said the agreement covers “compensation, benefits and other work rules until September 2024.”
Ratification of the agreement would take a major burden off the plate of (ACN)’s senior leadership, which faced the prospect of its pilots (FC)’s current labor contract expiring in April 2016. “This new, 10-year agreement with the (ACAPA) is an important development which, if ratified, will allow us to further accelerate the implementation of our business strategy and support long-term profitable growth for the benefit of (ACN) and our pilots (FC),” (ACN) President Passenger Airlines, Benjamin Smith said.
(ACPA) President, Craig Blandford said, “We are very pleased to have reached a new agreement with Air Canada (ACN) that will provide our members with stability and security of employment, career progression, fair compensation and most importantly, a share of our airline’s financial success. At the same time, our new agreement provides (ACN) with the stability and flexibility to grow and prosper, which is good for all its stakeholders, including our members.”
November 2014: News Item A-1: Air Canada (ACN) President & (CEO) Calin Rovinescu said (ACN) achieved the “best performance of any quarter” in its 77-year history in the 3rd quarter, posting net income of +C$323 million/+$283 million, adjusted net income of +C$457 million and an operating profit of +C$526 million.
The net profit was up +8% compared to net income of +C$299 million in the 2013 September quarter. The adjusted net profit (which excludes foreign exchange, net financing expense on employee benefits, mark-to-market adjustments on fuel and other derivatives and unusual items) was up +25% year-over-year and was the highest adjusted net profit (ACN) has ever posted in any quarter. The operating profit, up +26.4%, was (ACN)’s best-ever quarterly operating income result.
Rovinescu told analysts he was “extremely pleased with these results,” which included a 13.8% operating margin (up +1.8 points year-over-year) and a return on invested capital (ROIC) of 11.4% for the 12 months ended September 30.
Rovinescu said the 3rd-quarter performance validated (ACN)’s strategy, at the heart of which is a “focus on global expansion” and the “strategic deployment of Air Canada rouge.” Rouge, the leisure affiliate launched last year, “is exceeding our expectations on a profitability basis,” (CFO), Michael Rousseau told analysts.
Rouge operates a fleet of 27 airplanes, a mix of Boeing 767-300ERs and Airbus A319s, and ultimately will have a fleet of at least 50 airplanes. Rouge carried >1 million passengers in the 3rd quarter. (ACN) expects to increase system capacity +9% to +10% for the full-year 2014; 55% of that growth will come from rouge.
On the mainline international operations front, Air Canada (ACN) is growing revenue and plans to keep expanding. To that end, it is adding +2 more 777-300ERs in the 2016 2nd quarter.
(ACN), which now operates 23 777s and 5 787s, reported a +14.9% year-over-year increase in transatlantic revenue and a +8.3% boost in transpacific revenue in the 3rd quarter. Rovinescu said the 787s, the 1st of which was delivered in May, are operating superbly, and noted that “Boeing (TBC) has indicated we have the best induction record of 787 operators.”
Rovinescu did not provide specific details of the recently ratified 10-year labor contract with (ACN)’s pilots (FC), but said the deal gives (ACN) “flexibility” to grow rouge and also to adjust capacity purchase agreements with regional carriers.
(ACN)’s 3rd-quarter revenue grew +9.2% year-over-year to C$3.8 billion, as traffic increased +11% to 18.57 billion (RPM)s. Capacity rose +9.8% to 21.3 billion (ASM)s and 87.2% LF, up +1 point. Yield decreased -1.3% to C$0.185.
(ACN) said the yield decline can be attributed to “an increase in average stage length of 2.6% due to international long-haul growth” and Rovinescu emphasized (ACN) won’t let the yield dip deter it from continuing to grow aggressively. “The international strategy does require us to keep expanding,” he said, adding, “We are into the long-term game here. We’re avoiding short-term.”
News Item A-2: Air Canada (ACN) and Air China (BEJ) have concluded a memorandum of understanding (MOU) setting out the main principles for a comprehensive revenue sharing joint venture (JV) providing for an enhanced partnership on routes between Canada and China which will stimulate traffic growth between the 2 countries.
The (JV) will generate additional service and pricing benefits for consumers traveling between the 2 countries, as well as provide for enhanced cooperation between the 2 carriers in the areas of sales, marketing and airport operations. The announcement was made in Beijing during an official visit to China by Canadian Prime Minister Stephen Harper, prior to a meeting of Asia-Pacific Economic Co-operation (APEC) member nations.
Subject to (ACN) and (BEJ) making the necessary filings, obtaining competition and other regulatory approvals and finalizing documentation, the (JV) is expected to come into effect by the end of 2015. "Working cooperatively with our partner (ACN), we will be able to provide more travel options and benefits for customers traveling between China and Canada while reducing travel times through a more streamlined travel experience," said Song Zhiyong, President & Executive Director of (BEJ). "This (JV) between (BEJ) and (ACN) will provide many benefits and commercial synergies on the important and growing market for travel and trade between Canada and China. Over the past 5 years, the Canada - China air travel market has grown on average by almost +11% annually and this trend is expected to remain strong according to airline industry trade group (IATA)."
"As members of the Star Alliance (SAL), (ACN) and (BEJ) will benefit from a revenue sharing (JV), as have our customers through a simplified travel experience and loyalty rewards," said Calin Rovinescu, President & (CEO) of (ACN), in Beijing to sign the (MOU). "By deepening our cooperation in the areas of scheduling and sales management, the carriers will be better able to serve customers by offering more travel options. The (JV) will provide customers of both carriers additional travel options through the expansion of code share flights to additional airports in both carriers' domestic networks as network growth is a core principle of the (JV)."
Currently, (BEJ) offers its customers code share flights operated by (ACN) between Vancouver and 6 Canadian cities (Edmonton, Calgary, Winnipeg, Toronto, Ottawa, and Montreal) and (ACN) offers its customers code share flights operated by (BEJ) between Beijing and 6 cities in China (Guangzhou, Chongqing, Chengdu, Shenyang, Wuhan, and Xi'an).
(ACN) operates up to a total of 28 flights per week between Canada and China, from Toronto and Vancouver to and from Beijing and Shanghai. Air China (BEJ) operates up to 11 flights per week between Beijing and Vancouver.
News Item A-3: Air Canada (ACN) has been named the gold winner of the 2014 Canada's Safest Employers Awards in the transportation category. The Awards, announced in the November issue of the "Canadian Occupational Safety" magazine, recognize companies from all across Canada for outstanding accomplishments in promoting the health and safety of their workers.
"This award recognition speaks volumes about the countless efforts by (ACN) employees and is a considerable achievement," said Samuel Elfassy, (ACN)'s Senior Director Corporate Safety. "The airline industry presents a complex operating environment, one in which occupational health and safety management plays a key role in maintaining a safe workplace."
"Sharing of information is critical to safety. We use the latest technologies to gather data in new ways, to create a culture where employees are comfortable and confident in speaking up. This prestigious award is a prime achievement and speaks to (ACN)'s safety culture, which upholds our keystone value: Safety 1st and last - 100% - All the time," continued Mr Elfassy.
"Keeping 27,000 employees healthy and safe on the job is no easy feat. (ACN)'s commitment to all its workers in this regard is why it is deserving of a gold Canada's Safest Employers Award," noted Amanda Silliker, Editor, Canadian Occupational Safety magazine. "Its various initiatives such as tackling back injuries and monitoring radiation make it stand out as a leader in occupational health and safety."
News Item A-4: About Air Canada (ACN):
(ACN) is Canada's largest domestic and international airline serving more than >182 destinations on 5 continents. Canada's flag carrier is among the 20 largest airlines in the world and in 2013 served more than >35 million customers. (ACN) provides scheduled passenger service directly to 60 Canadian cities, 49 destinations in the USA and 73 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico, and South America. (ACN) is a founding member of the Star (SAL) Alliance, one of the world's most comprehensive air transportation networks serving 1,316 airports in 192 countries. (ACN) is the only international network carrier in North America to receive a Four-Star ranking according to independent UK research firm, Skytrax that ranked (ACN) in a worldwide survey of more than >18 million airline passengers as "Best Airline in North America in 2014" for the 5th consecutive year. For more information, please visit: www.aircanada.com<http://www.aircanada.com>.
News Item A-5: Air Canada (ACN) said it will acquire +2 additional Boeing 777-300ERs. The added 777s, to be delivered in the 2016 2nd quarter, will bring (ACN)’s 777 fleet to 25 airplanes, a mix of 777-300ERs and 777-200LRs. (ACN) President & (CEO) Calin Rovinescu said the new 10-year labor contract ratified by (ACN)’s pilots (FC) provides the “stability” to be “able to accelerate our fleet initiatives and capital programs with the acquisition of an additional 2 777-300ER airplanes.”
Also, (ACN) said all 25 of its 777s will be fitted with (ACN)’s new international business (C) class product, bringing the 777s in line with (ACN)’s 787s. (ACN) had previously said it would only fit 18 777s with the new business (C) class product.
“The introduction of our new international onboard product standard across our entire Boeing 777 and 787 fleets is a key component of Air Canada’s international expansion plans,” Air Canada President Passenger Airlines, Benjamin Smith said.
News Item A-6: See video:
December 2014: News Item A-1: Air Canada (ACN) will begin 4x-weekly, Toronto - Delhi Boeing 787-9 service in November 2015, marking (ACN)’s entrance into the Indian subcontinent. The route will be the first on which (ACN) will deploy the 787-9, which will fly 3 of the 4 weekly frequencies between Toronto and Delhi. The 4th weekly frequency will be operated with a 787-8.
(ACN) noted that India is the largest international market to which it currently does not have service.
(CEO) Calin Rovinescu said adding the Toronto - Delhi route will be a “major step forward” in (ACN)’s ongoing strategy of building up an extensive international network with Toronto serving as the central hub. He noted it will be the 1st direct flight between Canada and India. “The operating economics of [the 787] make this service feasible,” Rovinescu said. “This service will appeal both to customers visiting and doing business in Delhi, the capital region of India and the 4th most populous urban area in the world, and to those customers making onward connections within India and throughout Southeast Asia on our Star (SAL) Alliance partner, Air India (AIN)/(IND), or other interline partners.”
Tickets for the Toronto - Delhi flights will go on sale December 9.
(ACN), the flag carrier and largest airline of Canada, commenced its 2nd service to Brazil, this time linking Toronto Pearson (YYZ) to Rio de Janeiro Galeao (GIG) on December 11th. The 8,246 km sector to the main gateway serving Rio de Janeiro will be served 3x-weekly, utilizing (ACN)’s 208-seat 767-300s. No other airline serves this airport pair, but (ACN) is already flying daily between Pearson and Sao Paulo Guarulhos.
News Item A-2: (ACN), which continues to aggressively expand its international network, will add Dubai in 2015. (ACN), on the heels of announcing its entrance into the Indian market, has announced it will start 3x-weekly, Toronto - Dubai flights in November 2015. 2 of the weekly frequencies will be operated with a 787-9, while the 3rd will be operated with a 787-8. After Toronto - Delhi, Dubai will be the 2nd route on which (ACN) deploys the 787-9.
Dubai becomes the 7th new international city (ACN) has announced it will add in the past year. Overall, Dubai will be its 66th international destination. (ACN) has hinged its turnaround strategy, which it credits for recent profitability, on building an extensive global network centered around its Toronto hub.
(ACN) has said it aims to attract USA business passengers and also compete internationally with major European and Middle East airlines. (CEO) Calin Rovinescu said the Dubai “service will be (ACN)’s 1st nonstop flight to the (UAE) at a time when air travel between North America and the region is growing, including more international connecting traffic over our Toronto global hub.”
Tickets for the Toronto - Dubai flights are going on sale December 16.
News Item A-3: The USA has announced it will initiate discussions with Cuba to re-establish diplomatic relations, aiming to open an embassy in Havana in the coming months. “Decades of USA isolation of Cuba have failed to accomplish our enduring objective of promoting the emergence of a democratic Cuba,” USA President, Barack Obama said, adding the policy has isolated the USA from regional and international partners. “Though the policy has been rooted in the best of intentions, it has had little effect - - today, as in 1961, Cuba is governed by the Castros and the Communist party,” Obama said.
Numerous policy changes were put forth in Obama’s announcement; among them was a lifting of certain travel restrictions. According to the White House press release, general licenses will be made available for all authorized travelers in “12 existing categories,” including family visits; official USA and foreign government business; journalistic activity; professional research and meetings; educational activities; religious activities; public performances, clinics, athletic competitions and exhibitions; humanitarian projects; and “support for the Cuban people,” among others.
The announcement stipulates “travelers in the 12 categories of travel to Cuba authorized by law will be able to make arrangements through any service provider that complies with the USA Treasury’s Office of Foreign Assets Control (OFAC) regulations governing travel services to Cuba, and general licenses will authorize provision of such services.”
A specific relaxation of travel restrictions to Cuba currently upheld by USA-based airlines was, so far, not addressed in the initial announcement. Currently, Air Canada (ACN) offers flights to Havana out of Toronto.
News Item A-4: Air Canada (ACN) is the launch customer for Boeing (TBC)’s new landing gear exchange programs for 777-300ER and 777-200LR airplanes. Under the agreement, (ACN) will receive fully overhauled and certified landing gear shipsets for its fleet of 17 777-300ERs and 6 777-200LRs during scheduled maintenance cycles.
News Item A-5: Air Canada (ACN), bolstered by a recent agreement with its pilots (FC) that clears the way to boost capacity at its leisure affiliate, Air Canada rouge, has decided to halt transfers of 136-seat Airbus A319s to its low-cost carrier (LCC) subsidiary and will instead mix in larger narrow bodies.
News Item A-6: Boeing (TBC) delivered a new 787-8 to (ACN).
January 2015: 787-8 (35263, C-GHQQ), ex-(N8570Y), Charleston #53.
February 2015: News Item A-1: Air Canada (ACN) has reached a tentative collective agreement with the International Brotherhood of Teamsters (IBT) for (ACN)’s USA-based workforce. According to the Montreal-based carrier (ACN), the agreement is subject to ratification by union membership. Details of the agreement will not be released pending ratification and approval by the Air Canada (ACN) board of directors.
The (IBT) represents approximately 650 (ACN) airport, cargo and call center employees based in the USA.
(ACN) reached a tentative agreement with the leadership of its pilots (FC) union on a 10-year labor contract in October 2014. The Air Canada Pilots Association represents 3,000 (ACN) pilots (FC).
News Item A-2: Air Canada (ACN) has reached a tentative collective agreement with the (UNITE) Union for (ACN)’s UK-based workforce.
According to (ACN), the agreement is subject to ratification by union membership. Details of the agreement will not be released pending ratification and approval by the (ACN) board of directors.
(UNITE) represents approximately 200 Air Canada (ACN) concierge service, cargo and clerical staff based in the UK.
On February 4, (ACN) reached a tentative collective agreement with the International Brotherhood of Teamsters (IBT) for (ACN)’s USA-based work force.
In October, 2014, (ACN) reached a tentative agreement with the leadership of its pilots (FC) union on a 10-year labor contract in October 2014. The (ACN) Pilots Association represents 3,000 (ACN) pilots (FC).
News Item A-3: Chorus Aviation, parent of Jazz Aviation, has finalized its amended capacity purchase agreement (CPA) with Air Canada (ACN) and placed an order for 13 firm Bombardier Dash 8-Q400 NextGen airplanes valued at $424 million plus 10 options.
In addition, Bombardier (BMB) said Chorus will be the launch customer for a DHC-8-300 extended service program “that will extend the life of the DHC-8-300 turboprop to 120,000 flight cycles from the original 80,000 flight cycles.” Chorus plans to operate its fleet of 26 DHC-8-300s through 2025, but will launch a new subsidiary carrier modeled after Air Canada rouge to fly the older airplanes.
Jazz, Canada’s largest regional airline, will focus on operating “a mix of larger, newer airplanes comprised of Dash 8-Q400, CRJ200 and CRJ705 airplanes,” Chorus said. The new subsidiary will have its own workforce, Chorus said.
The amended (CPA) with (ACN), which is retroactive to January 1 and extends through 2025, changes Jazz’s compensation “from a cost plus a 12.5% mark-up to a fixed fee arrangement,” Chorus said. “The new compensation structure is at the core of the amended agreement as it simplifies the relationship, improves transparency, and provides an alignment and mechanism for cost reduction benefits to materialize on an accelerated basis. Chorus is now compensated using the industry standard approach of a fixed fee per airplane regardless of how much an airplane is flown.”
(ACN) President & (CEO) Calin Rovinescu added, “The agreement significantly increases our competitiveness in regional markets through lower unit costs and an improved product offering. The resulting stronger network will support our commercial strategy of expanding internationally and increasing connecting traffic through our hubs.”
Chorus’s fleet plan calls for 23 new 78-seat Dash 8-Q400s to be added to replace 34 37-seat DHC-8-100s and 25 50-seat CRJ200s over the next 11 years.
News Item A-4: 767-333ER (30846, C-GHLQ), ex-(N6009F), (GEF) leased, A320-214 (1975, C-FGKH), ex-(OO-TCI), Macquarie AirFinance leased.
March 2015: News Item A-1: In November 2014, Air China (BEJ) and Air Canada (ACN) signed a memorandum of understanding (MOU) defining a revenue-sharing joint venture (JV). Passengers traveling on the China - Canada routes are expected to benefit from more route options, upgraded services and lower prices. The 2 carriers will also enhance partnerships in sales, marketing and airport operations.
Air China (BEJ) currently offers code share flights with (ACN) between Vancouver and 6 other Canadian cities: Edmonton, Calgary, Winnipeg, Toronto, Ottawa, and Montreal. Air Canada (ACN) also offers code share flights operated by (BEJ) between Beijing and 6 cities: Guangzhou, Chongqing, Chengdu, Shenyang, Wuhan, and Xi'an.
Air China (BEJ) is looking at possible expanded service to eastern Canada for later in 2015.
News Item A-2: ACCDT: Air Canada Airbus A320-211 (C-FTJP) landed short at Halifax Stanfield International Airport early March 29, “collided with terrain” and then became airborne again before finally coming to a stop, creating an “extensive debris field,” according to Canadian investigators. SEE ATTACHED - - "ACN-2015-03 - ACCDT A320-A/B/C."
The Transportation Safety Board (TSB) of Canada detailed the crash landing in a preliminary report, describing a significant incident that severely damaged the airplane. Flight AC624, en route from Toronto Pearson, came down 1,100 feet short of Halifax International’s Runway 5, the (TSB) said.
“The initial impact was significant and caused substantial damage to the airplane,” the report stated. “The main landing gear separated and the underside of the airplane was heavily damaged (fuselage and wings). During this impact, the airplane collided with a localizer antenna array (part of the instrument landing system (ILS)) and became airborne again, traveling forward on Runway 05. There was an extensive debris field between the localizer antenna location and the threshold of the runway.”
The flight was carrying 133 passengers and 5 crew ((2 (FC), 3 (CA)); 25 people were treated at a hospital for injuries, but no one was seriously injured.
The (TSB) said it has recovered the cockpit voice recorder (CVR) and flight data recorder (FDR) and evaluated the recorders at its Ottawa lab. Investigators interviewed the pilots (FC), but have not disclosed what the flight crew (FC) said.
It was snowing in Halifax at the time of the incident. Air Canada (ACN) Executive VP & (COO) Klaus Goersch said at a news conference that it was “safe to fly” and “the weather was appropriate for landing.”
April 2015: Air Canada (ACN)’s USA-based workforce, represented by the International Brotherhood of Teamsters (IBT), has ratified a new collective agreement reached February 4. The new agreement is in effect until June 30, 2019.
(ACN) Executive VP & (COO) Klaus Goersch said, “Following agreements concluded in recent months with our pilots (FC) and with our UK-based employees, this agreement with the (IBT) confirms our employees’ desire to work with the company to continue building a stronger and sustainably profitable business.”
The (IBT) represents approximately 650 Air Canada airport, cargo and call center employees based in the USA.
This agreement with the (IBT) follows the conclusion in February 2015 of a new agreement with (UNITE), which represents (ACN)’s UK employees until 2019. It also follows the conclusion of a new agreement in October 2014 with Air Canada Pilots Association (ACPA), which represents (ACN)’s pilots (FC), on collective agreement terms for 10 years.
May 2015: News Item A-1: Air Canada (ACN) posted a 1st-quarter net loss of -C$309 million/-$245 million, narrowed from a -C$341 million loss in the year-ago quarter. It reported an adjusted net income of +C$122 million, reversed from an adjusted net loss of -C$132 million.
1st-quarter operating revenue was C$3.3 billion, up +6% year-over-year. Expenses were down -2% to C$3.049 billion on capacity growth of +9.3%.
(ACN) President & (CEO) Calin Rovinescu said (ACN) has “continued to see a strong demand environment, and in the 1st quarter, our margins expanded dramatically, bolstered by strong cost control, with adjusted (CASM) declining -1.8%, despite the weaker Canadian dollar, and solid traffic growth particularly on leisure sun routes.”
1st-quarter traffic was up +10.9% to 15 billion (RPM)s on a +9.3% rise in capacity to 18.34 billion (ASM)s, producing 81.5% LF, up +1.2 points year-over-year.
“While fuel prices remain volatile, in 2015 we expect to continue to expand margins, increase adjusted net income, strengthen our balance sheet and create value for shareholders,” Rovinescu said. “We also expect to set a new record for 2nd-quarter operating income this year; however, year-over-year improvements will likely be modest when compared to the 1st-quarter improvement. This is due to a particularly strong revenue performance in the 2nd quarter of 2014 and higher projected maintenance expense [C$120 million], the absence of favorable tax-related provisions adjustments of $41 million recorded in the 2nd quarter of 2014, as well as higher relative fuel prices in the 2nd quarter versus the 1st quarter of 2015.”
News Item A-2: Jazz Air parent, Chorus Aviation reported 1st-quarter net loss of -C$24.8 million/-$20.69 million, reversed from a net profit of +C$5.6 million in the year-ago period.
1st-quarter revenue was down -9.5% to C$375.1 million, while expenses fell -6.3% to C$359.2 million, producing an operating income of +C$15.9 million, down nearly -50% year-over-year.
Chorus President & (CEO) Joseph Randell said, “Excluding an unrealized foreign exchange loss and 1-time cost items, 1st quarter earnings were relatively consistent with past results and as expected. We are progressing as planned through this year of change, and I'm pleased with our transition so far.”
Halifax-based Chorus said it generated adjusted (EBITDA) of $28 million, excluding foreign exchange loss of -$33.9 million, on USA-denominated debt. Chorus also incurred 1-time expenses that included a $10 million signing bonus for Jazz pilots (FC) under the terms of their new collective agreement, and $2.1 million for advisory fees related to the recent amendment to the Capacity Purchase Agreement (CPA).
“Our financial performance under the recently amended (CPA) is in line with our expectations,” Randell said. “Our employees delivered tremendous operational performance in the 1st quarter and captured $5.6 million of performance incentive payment under the (CPA), or 96.7% of the maximum available.”
Randall said during the quarter, Chorus experienced a “+C$1.8 million increase in leasing revenue under the (CPA) and anticipate this revenue stream to increase as 6 new Bombardier Dash 8-Q400s are planned to be incorporated into the Jazz fleet later this year. Earlier this month, it completed the acquisition of Voyageur Airways (a transaction that will be immediately accretive to Chorus' consolidated earnings and free cash flow).”
Capacity in the 1st-quarter was 1.25 billion (ASM)s, down -4.6% year-over-year.
As of March 31, Chorus’ fleet was made up of 125 operating airplanes, comprising 42 regional jets and 83 turboprop airplanes.
News Item A-3: Air Canada rouge, the new venture leisure airline from Air Canada (ACN) that was launched in July 2013, introduced its 2nd route to Italy from Montreal (YUL) on May 14th, this time to Venice Marco Polo (VCE). The 6,354 km sector will be served 2x-weekly (Thursdays and Saturdays), utilizing rouge’s 280-seat 767-300s. rouge is already operating to Italy from Montreal with 5 weekly departures to Rome Fiumicino. Air Transat (AIJ) with weekly flights, provides direct competition on the new sector.
(ACN) launched its latest USA service from Toronto Pearson (YYZ) on May 22nd, with new four 4x-weekly service to Atlantic City (ACY), complementing the recently launched daily service from the Canadian city to Austin-Bergstrom in Texas. (ACN) will fly the 628 km sector using 74Y-seat Dash 8-Q400s, operated under the Air Canada Express brand. The route faces no direct competition.
A321-211 (3884, C-FGKP), ex-(F-GTAV) delivery.
June 2015: News Item A-1: Air Canada (ACN) will add London Gatwick to its network in spring 2016, a move Canada’s largest carrier is making just as WestJet Airlines (WJI) enters the market.
Flights will be operated by Air Canada rouge, the low-cost carrier (LCC) subsidiary (ACN) created to compete with (WJI), Air Transat (AIJ), and other Canadian charter carriers. rouge will fly 767s with 24PY seats in a premium-economy section and 256Y seats in economy. The summer-only service begins on May 19, 2016.
The announcement comes 10 days after WestJet (WJI) said it would make London’s Gatwick Airport its 1st international 767 destination, with plans to fly there next spring. But (WJI) was short on the details, not saying from where in Canada it will fly, or how many flights it will add. (WJI) said it chose Gatwick because it is a relatively low-cost airport close to central London, that offers passengers many onward connections on other airlines.
WestJet (WJI) said it will decide what Canadian cities will see Gatwick service later this summer. It noted that the 767 has the range to fly to Gatwick from anywhere in Canada.
Air Canada (ACN) also said it will begin year-round mainline service between Montreal and Lyon, France, on June 16, 2016. Flights will be operated up to 5x-weekly on A330s with 37C flat-bed seats in business class and 228Y seats in economy.
News Item A-2: Air Canada (ACN) will launch Boeing 787-8 Vancouver - Brisbane service in June 2016, subject to government approval.
The flights will initially operate 3x-weekly, but (ACN) plans to eventually increase the frequency to daily. Brisbane, Australia’s third largest city in terms of population, will be a new addition to (ACN)’s network. Brisbane Airport said it had negotiated with the airline for 2 years about serving the city.
(ACN) continues to implement a strategy of building a robust international network, particularly long-haul flights with the 787.
(ACN) President & (CEO) Calin Rovinescu said, “We will be offering the only nonstop, year-round flights from Canada to Brisbane. The operating economics of the 787 Dreamliner, together with the efforts of the Vancouver Airport Authority, who have maintained airport operating costs at levels among the lowest in Canada, have enabled us to grow our Vancouver hub.”
(ACN) said it will make tickets for the Vancouver - Brisbane flights available starting July 16. (ACN)’s 787-8s are configured with 210Y economy-class seats, 21PY premium economy seats and 20C business-class seats.
News Item A-3: Air Canada rouge launched its 1st services to Abbotsford (YXX) in BC on June 27, with a new daily service from Toronto Pearson (YYZ). Flights on the 3,286 km sector will be flown using Rouge’s A319s and will be operated until October 12.
The airport pair faces no direct competition according to Official Airline Guide (OAG) Schedules Analyser data. Last year, Abbotsford International Airport, which holds a major air show every August, handled almost 480,000 passengers with WestJet (WJI) the dominant carrier at the airport.
767-3Q8 (29386, C-FJZK), AerCap leased, 2 767-333 (30851, C-GHLU; 30852, C-GHLV), all 3 for Air Canada rouge, A321-211 (3401, C-FGKZ), ex-(F-GTAR), AerCap (DEA) leased for Air Canada (ACN).
July 2015: News Item A-1: Air Canada (ACN) will begin 5x-weekly, Montreal - Lyon Airbus A330-300 service June 16, 2016. Daily, Toronto - London (LGW) begins May 19 with Boeing 767-300ERs.
News Item A-2: Air Canada (ACN) will transition a number of mainline routes into the network of low-cost carrier (LCC) subsidiary, Rouge beginning later this year, an expansion that will see Rouge’s Boeing 767-300ERs deployed to the USA and to more cities in Hawaii.
The expansion kicks off on October 24, when Rouge will begin 3x-weekly flights between Toronto and Sarasota in Florida using Airbus A319s. Later in winter, Rouge will transition the service to once daily and also operate A321s on the route.
Then on October 25, Rouge will begin flying A319s between Toronto and Fort Lauderdale 3x-daily, with frequencies increasing to up to 5x-times daily in December. It will also operate A321s and 767s on the route, schedules show.
Rouge will launch A319 service between Toronto and Panama City, which will initially operate 2x-weekly but transition to 3x-weekly. That will be followed on December 16 by up to 5x-times daily service between Montreal and Fort Lauderdale using A319s, A321s and 767s.
The expansion continues on December 19 with the planned launch by Rouge of 1x- or 2x-weekly 767 flights between Vancouver and Kona in Hawaii. Then on January 7 the carrier will begin flying 767s 1x-daily between Toronto and Bridgetown in Barbados.
On January 15, Rouge will begin flying A319s 3x- to 4x-times weekly between Montreal and Tampa, and 3x- to 5x-times weekly between Montreal and West Palm Beach.
On January 17, Rouge will begin flying 2x-weekly between Montreal and Nassau.
Rouge will launch another 767 route, a 1x-weekly service between Vancouver and Cancun, on February 15.
News Item A-3: Air Canada (ACN) took delivery of its 1st 787-9 (35265, C-FNOE), a larger version of the 787-8. The 787-9 begins revenue flights later in August linking Toronto with Vancouver. It will then make its international debut on services from Toronto (YYZ) to Milan-Malpensa (MXP) and Munich (MUN) a month later.
1st designated routes for the 787-9 are nonstop services from Toronto to Delhi beginning November 1 and to Dubai beginning November 3. (ACN) took delivery of its 1st 787 Dreamliner in May 2014 and will receive a total of 29 new 787-9 Dreamliner airplanes by 2019, in addition to 8 787-8 airplanes already in operation.
The 787-9s are equipped with 298 seats in a 3-class layout: 30C, 21PY, 247Y, an increase of +20% over the 251-seat 787-8s: 20C, 21PY, 210Y. The remaining 787-9s will be delivered by 2019.
August 2015: Air Canada (ACN) reported a 2nd-quarter net profit of +C$296 million/+$239.6 million, up +32.7% from a net profit of +C$223 million in the year-ago period.
A weak Canadian dollar led to an increase in (ACN)’s costs, but low fuel prices “largely offset” the currency impact and steady revenue enabled the carrier to report its best-ever 2nd-quarter operating profit. 2nd-quarter revenue rose +3% year-over-year to C$3.41 billion, while expenses heightened +1% C$3.09 billion, producing an operating profit of +C$323 million, up +31.8% over operating income of C$245 million in the 2014 June quarter.
2nd-quarter traffic increased +8.7% year-over-year to 16.85 billion (RPM)s on a +9.3% lift in capacity to 20.13 billion (ASM)s, producing 83.7% LF, down -0.5 point. Yield lowered -5% to C$0.18.
(ACN) forecasts that 3rd-quarter system capacity will increase +9.5% to +10.5% year-over-year, while full-year system (ASM)s are expected to grow +9% to +10%. “Approximately 55% of the 2015 forecasted capacity increase will be through the continued lower-cost growth of Air Canada rouge, while approximately 38% of the capacity growth will be targeted to international markets operated by the mainline carrier,” (ACN) stated.
(ACN) reported a return on invested capital (ROIC) of 16.2% for the 12 months ended June 30, up +5 points over 11% (ROIC) for the 12 months ended June 30, 2014.
While (ACN) expects that its solid financial performance will continue through the second half of the year, the company is assuming “relatively low Canadian (GDP) growth for 2015.” It also expects that the Canadian dollar will continue to be weak, trading at C$1.30 per USA dollar on average in the 3rd quarter and at C$1.27 for the full year.
Chorus Aviation, the parent company of Canadian regional airline Jazz Aviation, posted 2nd-quarter net income of +C$31.4 million/+$25.4 million.
The Halifax-based company’s net profit for the period was down -14% from net income of +C$36.5 million in the 2014 June quarter. 2nd-quarter operating revenue lowered -4.2% year-over-year to C$400.1 million, while expenses decreased -5.6% to C$362 million, producing an operating profit of +C$38 million, up +10.8% over operating income of C$34.3 million in the prior-year period.
“We continue to make significant progress on a number of fronts,” Chorus President & (CEO) Joseph Randell said, noting that Jazz’s amended and extended capacity purchase agreement with Air Canada (ACN), agreed to earlier this year, “is transitioning as planned and delivering financial results relatively consistent with past performance.”
Jazz plans to take delivery of 6 new Bombardier Dash 8-Q400s by the end of 2015.
September 2015: News Item A-1: Air Canada (ACN) unveiled 4 new international routes it will start next year, including its 1st-ever service to Africa.
All four routes will be operated by leisure subsidiary, Air Canada rouge on a seasonal basis using 280-seat Boeing 767-300ER airplanes. Three of the routes will be from Toronto Pearson International Airport, which Air Canada is planning to increasingly market as an international transit hub. The fourth route will be Montreal - Casablanca; the Moroccan city will be (ACN)’s first destination in Africa.
The new routes are part of (ACN)’s strategy to build a robust international network (with Toronto Pearson as the primary hub) using both mainline Air Canada (ACN) airplanes and rouge airplanes. (ACN) noted that since 2009 it has increased system-wide international seats flown by approximately +50%.
From May 29, 2016, rouge will launch 3x-weekly seasonal, Toronto - Prague flights. The service will last until September 29. From June 3, rouge will start 4x-weekly, Montreal - Casablanca flights. The service is set to end October 17, but (ACN) President Passenger Airlines Ben Smith said the route is expected to “eventually” be converted to a year-round route.
From June 10, rouge will launch 3x-weekly Toronto - Budapest flights that will be operated through October 15. From June 13, rouge will start 3x-weekly, Toronto - Glasgow service that will be operated through September 25.
News Item A-2: Starting September 29, Montrealers can fly non-stop to China as Air Canada (ACN) and Air China (BEJ) launch their 1st direct flight to Beijing.
This is also the 1st non-stop trans-Pacific link between Montreal and Asia. Previously, Montrealers wishing to visit eastern Asia had to make a layover.
Montrealers could reach Asia directly, if they flew over the Atlantic Ocean, with direct flights to Doha, Qatar.
The flights to Beijing will take off 3x-weekly, on Tuesdays, Fridays, and Sundays. This is welcome news for the President of the Metropolitan Montreal Board of Trade, Michel Leblanc. "The benefits will come in many forms," he said. "There will be more Chinese students that will be visited by family, more companies that will set up here, and more Quebec companies that will do business in China."
Eastern provinces will also benefit:
China has become Quebec's second largest trading partner, after the USA Trade between Canada and China topped $78 billion last year, with Quebec and the Maritimes making up 20% of that.
The eastern provinces are also expected to benefit from the new flights, especially the agro-food and lobster industries.
Quebec's Economy Minister also praised the new direct link, mostly for its convenient travel times. "I had to get up at 3:00 am to make a stopover in Toronto to go to China," Jacques Daoust said. "Montreal is now a hub for Eastern Canada and northern USA."
Tickets selling well:
Air China (GUN) said that sales have been going well, with 85%t of tickets already sold for the 1st few flights.
The number of tourists coming from China to Quebec increased +60% last year, the carrier said, and it expects the demand to continue.
"The origin of these passengers is very diverse," said He Zhigang, an Air China (BEJ) Director. "We have diplomats, businessmen, but also people who use the link as an entry to the rest of Canada or USA."
Aéroports de Montréal (ADM) also commended the new link. The airport management authority said Montreal has lost several international flights to Toronto and Vancouver. "It's important for us to have this diversity of destinations," said (ADM)'s Executive Director, James Cherry, adding that his agency is working on adding more direct flights to Asia.
News Item A-3: The President & Chief Executive Officer (CEO) of Chorus Aviation, Joseph Randell, said his firm is considering expanding its aircraft leasing business into other countries.
In an interview with AirFinance Journal, Randell said talks with prospective clients had already commenced though nothing concrete had yet been finalized.
Currently Jazz Air ((IATA) Code: QK, based at Halifax) operates its fleet of 20 CRJ-200s, 16 CRJ705s, 34 DHC-8-100s, 28 DHC-8-300s, and 21 DHC-8-400s for Air Canada Express exclusively. The firm's other subsidiary, the recently acquired Voyageur Airways ((IATA) Code: VC, based at Sudbury), operates 7 CRJ-200s, 2 Dash 8-Q100s, and 3 Dash 8 Q300s for the United Nations Humanitarian Air Service (Brindisi).
In line with its amended Capacity Purchase Agreement (CPA) signed with (ACN) earlier this year, Chorus Aviation will transition to a mixture of larger, newer aircraft comprising Dash 8-Q400s and CRJ705s while at the same time establishing a 2nd carrier to operate its fleet of Dash 8-Q100s and Dash 8-Q300s which will ultimately be phased out. It is believed Voyageur could be used to help find suitable lessees for these aircraft once they have been retired.
Chorus established Jazz Aviation Holdings Inc to hold all of its business interests associated with the (ACN) (CPA) and includes Jazz Aviation LP (Jazz), Jazz Aircraft Financing Inc (JAFI), and Jazz Leasing Inc (JLI). (JAFI) and (JLI)'s sole purpose is to acquire and finance Dash 8-Q400s and related equipment, and lease them to Jazz for use in the (CPA).
According to Randell, Chorus Aviation is also considering diversifying away from its current all-Bombardier (Montréal Trudeau) fleet to include Embraer (São José dos Campos) and Avions de Transport Régional (Toulouse Blagnac) aircraft as well.
October 2015: News Item A-1: "Air Canada Grows Toronto Pearson Base by 6.6%; Delhi & Dubai to Join Network in November" by www.anna.aero, October 9, 2015.
Air Canada (ACN) commenced operations to Amsterdam from Toronto Pearson on June 4. The 5,985 km sector operates 3x-weekly, with (ACN) using its 767-300s on the city pair. The Netherlands is the 17th largest country market for (ACN) from Toronto in 2015.
(ACN) has its largest hub at Toronto Pearson, and over the past 12 months (October 14 - October 15) (ACN) has grown its annual seat capacity by +6.6%, or approximately 900,000 seats (NB – this review does not include Air Canada rouge (RV) operations). 1 of the main focuses for (ACN) recently is to develop its presence in international markets. “We’ve had about a +50% increase in seats to our international markets since 2009, and that continues to be our focus. Overall revenue for our international markets counts for about 43% of (ACN)’s overall passenger revenue,” commented Duncan Bureau, (ACN) Sales VP. He also added: “When you look at (ACN)'s total capacity, you’re looking at about +10% growth year-on-year, and 90% of that is going to be focused on the international market.” This is evident from its Toronto hub, which has seen the addition of three new country markets in the past 12 months.
News Item A-2: Chorus Aviation named Steven Ridolfi as Senior VP Strategic Investments, Mergers & Acquisitions.
November 2015: News Item A-1: Air Canada (ACN) posted 3rd-quarter net income of +C$437 million/+$325.9 million, up +35.3% over a net profit of +C$323 million in the 2014 September quarter, as (ACN)’s earnings bucked Canada’s weak economy.
Third-quarter revenue rose +5.9% year-over-year to C$4.02 billion, while expenses lowered -1.8% to C$3.21 billion, producing an operating profit of +C$815 million, up +54.9% over operating income of C$526 million in the prior-year period.
“We’re not seeing any softening of the market other than some relatively isolated markets,” (ACN) President & (CEO) Calin Rovinescu told analysts. “Some people are surprised we’re doing as well as we’re doing with all the capacity we’re putting in the market. Other than in intra-west [Canadian] markets, we’ve seen very strong demand from virtually all our markets. [Even if Canada is in a recession], Canadians are still traveling.”
He said (ACN) now has “the cost structure, fleet and flexibility to respond not only to competitive market conditions, but also to fluctuations in the Canadian dollar and economic downturns. Moreover, our plan is not based on fuel prices staying at the current levels.”
Rovinescu said 787s entering (ACN)’s fleet are providing -31% operating and maintenance cost savings compared to 767s they are replacing. (ACN) took delivery of its 1st 2 787-9s in the 3rd quarter; the 787-9s joined 8 787-8s already in (ACN)’s fleet. (ACN) is scheduled to have 28 of the 37 787s it has ordered in its fleet in by the end of 2016. The 787 is “extremely popular with our customers” and the “key to our international expansion,” Rovinescu said.
(ACN)’s 3rd-quarter traffic increased +10.2% year-over-year to 20.46 billion (RPM)s on a +10.5% increase in capacity to 23.54 billion (ASM)s, producing a load factor of 86.9% LF, down -0.3 points. Yield fell -3.8% to C$0.178. (ACN) expects 4th-quarter system capacity to rise +7.5% to +8.5% compared to the 2014 December quarter and full-year capacity to rise +9% to +10% compared to 2014.
News Item A-2: Air Canada (ACN) commenced services between Toronto Pearson (YYZ) and Delhi (DEL) on November 1. The 11,636 km route will be served 4x-times weekly on Mondays, Wednesdays, Fridays and Sundays, and will be flown by (ACN)’s 787-9s. The route will not face any direct competition.
News Item A-3: Air Canada (ACN) has announced new nonstop services between 12 USA cities and its four key Canadian hubs, beginning in the summer of 2016.
The new transborder routes will introduce new destinations for (ACN), such as Washington Dulles and Salt Lake City (to be served from Toronto) and San Jose, California (to be served from Vancouver), while also creating new Air Canada (ACN) city-pair routings, such as Chicago - Vancouver, Houston - Montreal, Denver - Montreal and San Francisco - Calgary.
“These new routes will make it easier for international travelers flying from and to the USA to connect to (ACN)’s global network through its major Canadian hubs. Additionally, customers traveling in the USA or from Latin America on partner United Airlines (UAL) will have more travel options and connection opportunities at (UAL)’s hubs in Houston, Denver, San Francisco, and Washington Dulles,” (ACN) President Passenger Airlines, Benjamin Smith said.
The new routes will be operated by Air Canada (ACN) mainline, Air Canada rouge, and Air Canada Express airplanes.
New routes include:
* Daily, Salt Lake City - Toronto service from May 28, 2016;
* Daily, Portland, Oregon - Toronto service from May 27, 2016;
* 2x-daily, Washington Dulles - Toronto Air Canada Express service from May 2, 2016;
* 2x-weekly, Jacksonville, Florida - Toronto Air Canada Express service from May 21, 2016;
* Daily, Denver - Montreal service from June 4, 2016;
* Daily, Houston - Montreal Air Canada Express service from June 6, 2016;
* 2x-daily, Philadelphia - Montreal Air Canada Express service from May 24, 2016;
* 3x-weekly, Phoenix - Calgary Air Canada rouge service, continued from winter schedule;
* Daily, San Francisco - Calgary Air Canada Express service from June 18, 2016;
* Daily, Chicago - Vancouver service from June 4, 2016;
* Daily, San Diego - Vancouver Air Canada rouge service from June 2, 2016;
* 2x-daily, San Jose - Vancouver Air Canada Express service from May 9, 2016.
News Item A-4: Air Canada rouge will offer 3x-weekly, Vancouver - Dublin seasonal service with Boeing 767-300ER airplanes beginning June 10, 2016.
News Item A-5: Air Canada (ACN) flight attendants (CA), represented by the Canadian Union of Public Employees (CUPE), have ratified a 10-year collective agreement. The (CUPE) represents 6,500 flight attendants (CA) at Air Canada (ACN) and 700 at Air Canada rouge.
The agreement, which has been approved by (ACN)’s board of directors, is subject to certain openers over the 10-year period. It follows a new 10-year agreement with (ACN)’s 3,000 pilots (FC) reached in October 2014.
“This 10-year landmark agreement with (CUPE) is a historic development that will help (ACN) achieve its global ambitions while acknowledging the important contribution of our flight attendants (ACN),” (ACN) President Passenger Airlines, Benjamin Smith said. It is the fifth collective agreement reached with (ACN)’s unions over the past year.
December 2015: News Item A-1: "Boeing, Canada Consortium to Partner on Biofuel" by (ATW) Linda Blachly, December 3, 2015.
Boeing (TBC) announced it will collaborate with the University of British Columbia and SkyNRG (with support from Canada’s aviation industry) to turn leftover branches, sawdust and other forest-industry waste into sustainable aviation biofuel.
Canada, which has extensive sustainably certified forests, has long used mill and forest residues to make wood pellets that are used to generate electricity. A consortium that includes Boeing (TBC), Air Canada (ACN), WestJet (WJI), Bombardier (BMB), research institutions and industry partners will assess whether forest waste could also be harnessed to produce sustainable aviation biofuel using thermo-chemical processing.
This project, announced during the 2015 Canadian Bioeconomy Conference in Vancouver, was recently awarded funding by the Green Aviation Research & Development Network (GARDN) of Canada as part of a portfolio of investments in technologies to reduce aviation's carbon emissions.
The consortium is led by (UBC) and (NORAM) Engineering and Constructors, Ltd of Vancouver. Project partner, SkyNRG, based in the Netherlands, is the global market leader for sustainable jet fuel, having supplied biofuel to >20 carriers worldwide.
News Item A-2: Air Canada (ACN) in a recent schedule update has extended planned 787-9 operations on Toronto – Los Angeles route, due to begin from February 1, 2016. The schedule update sees the 787 continue to operate daily service on/after May 01, 2016. During summer peak season between June 29, 2016 to September 05, 2016, (ACN) operates up to 7 daily flights on this route.
News Item A-3: Canada and Australia are doubling the number of seats airlines can fly per week between the two countries under an expanded air transport agreement, effective immediately, the Canadian government has said.
With the new deal, airlines from Canada and Australia each have been allotted 6,000 weekly seats for flights between Sydney, Melbourne, Brisbane, and Perth, plus Canada’s international gateways. By December 2016, Canada said, airlines from each country will be able to fly 9,000 weekly seats between Australia and Canada.
Also as part of the updated agreement, Canada and Australia have agreed to void “a number of regulatory requirements” regarding pricing. Moreover, airlines from both countries will be able to fly an unlimited number of all-cargo operations.
In 2014, about 400,000 passengers traveled on direct flights between Canada and Australia. From Canada, only Air Canada (ACN) flies to Australia, with flights from Vancouver to Sydney and, starting next June, to Brisbane.
Qantas (QAN), meanwhile, is flying from Sydney to Vancouver for a short period this fall and winter, in part, to accommodate Australian ski tourists.
News Item A-4: Air Canada (ACN) appointed Craig Landry as President of its Leisure Group, which includes rouge.
January 2016: Air Canada (ACN) has ratified a new 10-year agreement with the International Association of Machinists & Aerospace Workers, which represents 7,500 maintenance (MT), technical and operational support workers.
February 2016: News Item A-1: "Air Canada Posts +$222 million Net Profit for 2015" by (ATW) Mark Nensel, February 17, 2016.
Air Canada (ACN) reported +C$308 million/+$222.1 million in net income for 2015, nearly tripling the +C$105 net profit (ACN) earned in 2014. “We achieved the best financial results in (ACN)’s history for a second year in a row, by a substantial margin,” (ACN) President & (CEO) Calin Rovinescu said, adding the results reflected progress made through the company’s fleet modernization, international expansion and network diversification initiatives, as well as the continuing rollout of rouge, (ACN)’s leisure carrier.
On a (GAAP) basis, (ACN)’s full-year operating revenue was C$13.87 billion, up +4.5% (YOY). Total operating expenses for the year dipped -0.7% (YOY) to C$12.37 billion, which (ACN) attributed to lower aircraft fuel expenses (C$924 million), but was nonetheless offset by (ACN)’s +9.4% capacity growth during the year and also by unfavorable exchange rates on foreign currency denominated non-fuel operating expenses of C$326 million. (ACN)’s full-year operating profit came to +C$1.5 billion, more than doubling its +C$815 million in operating income for 2014.
(ACN)’s 2015 adjusted net profit (which excludes the effects of foreign exchange, as well as net financing income relating to employee benefits, mark-to-market adjustments on fuel and other derivatives and special items) was +C$1.22 billion, more than doubling its 2014 full-year adjusted net result of +C$531 million.
(ACN)’s full-year operating margin came to 10.8% (up +4.7 points (YOY) and its full-year return on invested capital (ROIC) was 18.3%, compared to 12.1% in 2014. Full-year passenger traffic increased +9.6% (YOY) to 67.5 billion (RPM)s as capacity grew +9.4% (YOY) to 80.8 billion (ASM)s, leading to a full-year passenger load factor of 83.5% LF.
Full-year (PRASM) was down -4.4% (YOY) to C15.1¢ and (CASM) was down -9.3% (YOY) to C15.3¢. (ACN)’s full-year yield decreased -4.6% (YOY) to C18¢, due to an increase in average stage length of +3.2% (YOY) to 1,545 miles as (ACN) expanded its international long-haul reach.
(ACN)’s 4th-quarter operating revenue increased +2.5% (YOY) to C$3.18 billion and operating expenses rose +0.9% (YOY) to C$3.02 billion, resulting in +C$158 million in 4th-quarter operating profits, a +49.1% (YOY) increase. Yet (ACN) reported a 2015 4th-quarter net loss of -C$116 million, deepening from a -C$100 million loss in (4Q) 2014. (ACN) saw foreign exchange losses in the 2015 December quarter of -C$159 million.
“Our plan is not dependent on fuel prices staying at current levels, and the transformative changes we’ve made in recent years provide us with a cost structure, fleet and flexibility to respond, as we did in 2015, to competitive market conditions, fluctuations in the Canadian dollar and to economic weakness,” Rovinescu said.
“We are committed to maintaining the strong momentum that we achieved in 2015,” Rovinescu said, adding that the corporation was reconfirming its financial goals for 2015 - 2018: an annual (EBITDAR) margin of 15 to 18%; a year-over-year (ROIC) of 13 to 16%; and reducing its leverage ratio to 2.2 or less by 2018.
News Item A-2: "Air Canada Dispatchers Ratify New Labor Agreement" by (ATW) Linda Blachly, February 12, 2016.
Air Canada (ACN) Dispatchers, represented by the Canadian Airline Dispatchers Association (CALDA), have ratified a new 12-year collective agreement. (ACN)'s Flight Dispatchers are based at (ACN)’s Operations center near Toronto Pearson International Airport and assist flight crew (FC) in the preparation for flight departures and arrivals.
(ACN) President & (CEO), Calin Rovinescu said, “The ratification of this new 12-year contract with our Flight Dispatchers, the seventh of our employee groups to do so over the past year-and-a-half, is an unprecedented achievement that recognizes the important contribution of our employees and underscores the transformative change that has taken place at (ACN). Moreover, these agreements provide (ACN) with added stability and flexibility to support long-term and profitable growth at the airline that is beneficial for all stakeholders.”
(ACN) said this 12-year contract with (CALDA) follows on the conclusion of 10-year contracts with the International Association of Machinists & Aerospace Workers (IAMAW), representing (ACN)’s 7,500 technical, maintenance, airport ramp and cargo personnel; with (CUPE), representing the airline’s 6,500 Flight Attendants (CA); and with (ACPA), representing its 3,000 pilots (FC).
It is the seventh agreement reached by (ACN) and its unions, including those with Unifor representing (ACN)’s 4,000 customer service and sales agents in Canada, the International Brotherhood of Teamsters (IBT) representing its USA unionized workforce and (UNITE) representing its UK unionized workforce.
News Item A-3: Air Canada rouge on February 15 commenced weekly (Monday) flights between Vancouver (YVR) and Cancún (CUN). The 4,472 km sector will be operated by (ACN) using its 767-300 fleet, with (ACN) facing direct competition from Sunwing Airlines (SWG), WestJet (WJI) and Air Transat (AIJ), which combined, offer 12x-weekly services. Air Canada rouge already serves the Mexican destination from Montreal and Toronto Pearson.
News Item A-4: Air Canada (ACN) from early-April 2016 is adjusting its New York operation, which sees the end of Toronto – New York (JFK) service. Currently this route is being served 2x-daily with a mix of CRJ200/CRJ705 and Dash 8-Q400 by Air Canada Express.
Last flight is scheduled on April 03, 2016.
News Item A-5: Air Canada (ACN) announced that it has entered into a Letter of Intent (LOI) with Bombardier (BMB) for the acquisition of up to 75 Bombardier CS300 aircraft powered by Pratt & Whitney PurePower® (PW1500G) engines as part of its narrow body fleet renewal plan. The (LOI) contemplates 45 firm orders plus options to purchase up to an additional 30 aircraft and includes substitution rights to CS100 aircraft in certain circumstances.
"Why Air Canada (ACN)’s CSeries Deal is Good News for All Airlines"
by Karen Walker in (ATW) Editor's Blog, February 19, 2016.
Air Canada (ACN)’s announcement that it intends to buy up to 75 CSeries aircraft is good news that extends beyond the airframe maker Bombardier (BMB) and engine supplier Pratt & Whitney (PRW). It’s also good news for airlines.
While Bombardier (BMB) still has a critical year ahead, this letter of intent (albeit from a Canadian airline) is significant. The number of aircraft, the aircraft type it will replace, and the fact that the customer is a major, international network carrier that has already committed to buying Boeing 737 MAXs, add up to a deal that could be a tipping point for the CSeries.
For the first time in far too long, airlines will have a third option in the all-important narrow body market. It’s an option that is solid (the CSeries is a well-designed and well-built aircraft; highly fuel efficient with excellent seat-mile costs; and it’s produced by an Original Equipment Manufacturer (OEM) that is highly experienced in delivering and supporting airliners on a global basis.
Airbus (EDS) and Boeing (TBC) are agreed on the importance and future growth of the narrow body market. As Boeing (TBC) says in its 2015 Current Market Outlook, “over the past 20 years, the single-aisle airplane has become the mainstay of many airlines fleets, composing 65% of all commercial airplanes flying.”
Emerging markets and low cost carriers (LCC)s are driving much of this demand, which Boeing (TBC) describes as the “fastest-growing, largest overall segment, requiring 26,730 airplanes over the coming two decades. These aircraft are the foundation of the world's airline fleet, carrying up to 75% of passengers on more than >70% of the world’s commercial aviation routes.”
So while it is understandable that Airbus (EDS) and Boeing (TBC) would like to maintain a duopoly (and are competing aggressively for neo and MAX sales), it is better for the world’s airlines if there is a third choice. (ATW) is convinced this desire for a third competitor was an important strategic factor in the Lufthansa Group’s decision to urge Bombardier (BMB) into CSeries development.
To be clear, Bombardier (BMB) (and Pratt (PRW)) are not blameless in the CSeries’ tepid sales performance. The program has been beset with delays and cost increases that have undermined confidence and prompted even keen potential customers to wait and see. But (ATW) also believes that Airbus (EDS) and Boeing (TBC) have contributed to the CSeries weak orders list, working behind the scenes to keep out a third competitor in the lucrative single-aisle market.
If the Air Canada (ACN) deal helps to turn round the CSeries’ order book and secure Bombardier (BMB)’s place in the efficient, 110 to 135 seat-range narrow body market, then the winner will be the airline industry.
News Item A-6: Bombardier (BMB) announced February 17 it will cut -7,000 positions over 2 years (close to -10% of its global workforce) in the latest effort by Canada's largest aerospace company to turn itself around as it awaits word of federal aid.
(BMB) said the layoffs will include -2,000 contract jobs. Nearly half of all the cuts would be at Bombardier Transportation, its rail division, which will lose -3,200 jobs. The rest would come from aerostructures and engineering, aerospace product development and Bombardier (BMB)'s business aircraft division.
Most of the cuts will be in Canada and Europe, though they will be partly offset by hiring in certain areas. Layoff notices are expected to be issued in the coming weeks and completed by next year.
News Item A-7: Air Canada (ACN) has agreed to have its CSeries airframe heavy maintenance performed in Quebec by a recognized maintenance provider for a minimum of 20 years from first delivery in 2019. It is expected that (ACN)’s commitment will help establish a Center of Excellence for CSeries maintenance in the province, and the Government of Quebec has agreed to discontinue the litigation on Air Canada (ACN)'s obligations to maintain an overhaul and operational center in the province.
News Item A-8: Jazz Aviation’s Technical Services division, with 820 Maintenance & Engineering employees represented by Unifor, has ratified a tentative agreement reached on January 28, 2016.
News Item A-9: Jazz Air (Air Canada Express) Bombardier Dash 8-Q402 (4181, C-GJZC), ex-(N507LX) delivery.
March 2016: News Item A-1: Air Canada (ACN) reached agreement with Manitoba to facilitate/support establishment in Province of Western Canada Centre of Excellence for maintenance, initially via three of its suppliers/partners; in return, Manitoba will drop litigation against airline over Air Canada (ACN) Public Participation Act.
News Item A-2: Air Canada (ACN) during Summer 2016 Olympics plans to increase capacity on the Toronto – Rio de Janeiro route, which sees Boeing 777-200LR operating, instead of 767. The 777-200LR will operate 3x-weekly from July 29, 2016 to August 23, 2016.
Additionally, Toronto – Sao Paulo service will be operating as Toronto – Rio de Janeiro – Sao Paulo from August 02, 2016 to August 5, 2016 (YYZ departure), and from August 19, 2016 to August 24, 2016 (except August 22, 2016, from Brazil).
News Item A-3: Gogo has expanded its connectivity partnership with Air Canada (ACN) to include its international fleet, including the Boeing 787. Under the new agreement, Gogo’s 2Ku connectivity technology will be installed on (ACN)’s wide body international airplanes, starting with the Boeing 777 this fall.
News Item A-4: Air Canada (ACN) will open a center of excellence for aircraft maintenance in Winnipeg. Having entered into an agreement with the Manitoba government, (ACN) expects to create 150 jobs from 2017 with the possibility of further expansion and job creation in the future. Three of (ACN)’s suppliers, Hope Aero Propeller & Components, Airbase Services and Cargojet Airways (CJT), will also establish a presence in the province.
April 2016: News Item A-1: Air Canada (ACN) reported a +C$100 million/+$77.5 million net profit for the 1st quarter of 2016, reversing its -C$309 million net loss in the (1Q) 2015.
“Despite somewhat unsettled economic times in Canadian resource markets, a very competitive domestic pricing environment and a continued weak Canadian dollar, we were able to increase our revenue base, deliver on our (ROIC) target [17.4 %], produce a record (EBITDAR) level [C$460 million] and take delivery of 4 new Boeing 787-9 airplanes,” (ACN) President & (CEO), Calin Rovinescu said. The company now expects its full year 2016 EBITDAR will increase between 4% and 8% over 2015, Rovinescu said.
(ACN)’s 1st-quarter revenue rose +2.9% year-over-year (YOY) to C$3.34 billion, while expenses increased +5% (YOY) to C$3.19 billion, producing an operating profit of +C$154 million, down -23% (YOY) from +C$200 million in (1Q) 2015.
(ACN)’s first-quarter traffic increased +7.7% (YOY) to 16.09 billion (RPM)s on a +8.2% increase in capacity to 19.83 billion (ASM)s, producing a load factor of 81.1% LF, down -0.3 points (YOY). Yield fell -4.7% (YOY) to C$0.174.
“[The] 787-9 airplanes that entered our fleet in the quarter are providing us with significant productivity improvements,” Rovinescu said, adding (ACN) is seeing a marked increase in the number of international and USA-originating customers.
“[And] Air Canada rouge continues to exceed our expectations and is allowing us to compete more effectively in leisure markets,” Rovinescu said.
As of the March 31 end of the 1st quarter, (ACN) had outstanding purchase commitments with Boeing for 21 787 airplanes and firm orders for 33 737 MAX 8 and 28 737 MAX 9 airplanes with substitution rights.
In February, (ACN) signed a Letter of Intent (LOI) with Bombardier (BMB) for the purchase of up to 75 Bombardier CS300 aircraft as part of its narrow body fleet renewal plan.
“The Letter of Intent (LOI) contemplates 45 firm orders plus options to purchase up to an additional 30 aircraft, and includes substitution rights to CS100 aircraft in certain circumstances,” Air Canada said. “Deliveries are provided to be scheduled to begin in late 2019 and extend to 2022. The 1st 25 aircraft on delivery would replace (ACN)'s existing mainline fleet of Embraer E190 aircraft, with the incremental aircraft supporting (ACN)'s hub and network growth. The CSeries purchase is subject to completion of final documentation and satisfaction of certain other conditions.”
News Item A-2: (EVA) Air and Air Canada (ACN) began code sharing fights in March. Under the code share, (ACN) passengers can take (EVA)-operated flights from Tokyo (NRT) and Seoul (ICN) airports to both Taoyuan (TPE) and Kaohsiung (KHH) airports in Taiwan. (EVA) passengers can fly Air Canada (ACN) on Vancouver - Calgary and - Edmonton and Toronto - Montreal.
(EVA) offers 5x-weekly, Taipei - Toronto and - Vancouver. Both carriers are members of the Star (SAL) Alliance.
News Item A-3: Air Canada (ACN) is set to finalize a joint partnership agreement wherein Cargojet Airways ((IATA) Code W8, based at Hamilton, Ontario) (CJT) will operate a 767-300F on flights from Canada to Europe and South America for and on behalf of Air Canada Cargo.
According to provisional plans, flights will commence on June 9 with service from Toronto Pearson to Bogotá, Colombia and Lima International, Peru (via Atlanta Hartsfield Jackson) and to México City via Dallas/Fort Worth. Service to Europe is scheduled to begin during the second half of the year.
"We are thrilled to offer our customers the only dedicated freighter service between Canada and Latin America," said Lise-Marie Turpin, VP Air Canada Cargo. "Working with Cargojet, we are able to leverage and build upon (ACN)'s extensive North American and international networks. We look forward to continuing to grow our dedicated freighter network to Europe later this year and for a successful and mutually beneficial relationship with Cargojet (CJT) into the future."
Air Canada Cargo offers freight services on domestic and international flights, utilizing bellyhold-capacity on board (ACN) and Air Canada Jazz ((IATA) Code: QK, based in Halifax) airplanes. For its part, Cargojet (CJT) specializes in over-night delivery flights throughout Canada employing a fleet of 8 767-300Fs, 2 767-200Fs, 5 757-200Fs, and 7 727-200Fs.
News Item A-4: Air Canada (ACN) has reduced its fleet by 26.11% in the last 10 years. Notable changes include 17 acquired Boeing 767-300ERs and 17 Boeing 777-300ERs, but 30 fewer Airbus A319-100s.
(ACN) will present its 1st quarter earnings for 2016 on April 29. According to Air Canada Corporate Communications, (ACN) announced new international routes to Amsterdam, Dubai, and New Delhi in 2015.
News Item A-5: Air Canada (ACN) will participate in Canada’s Biojet Supply Chain Initiative (CBSCI), a 3-year collaborative project with 14 stakeholder organizations to introduce 400,000 liters/105,669 gallons of sustainable aviation biofuel into a shared fuel system at a yet-to-be determined Canadian airport.
According to (ACN), the Canadian flag carrier, its previous biofuel flights used biojet that was segregated and loaded separately into an aircraft via tanker truck. By contrast, it said (CBSCI)’s objective is to start developing a more efficient operational framework that will introduce biojet into a multi-user, co-mingled airport fuel supply system.
Air Canada (ACN) Director Environmental Affairs, Teresa Ehman said, “In doing our part towards responsible growth and environmental sustainability, (ACN) has invested billions of dollars in fleet renewal to reduce our fuel consumption and meet our current emission reduction goals. Biojet holds the potential to be an important part of our strategy for achieving our longer-term industry goals of carbon neutral growth from 2020 and a -50% reduction in emissions by 2050, relative to 2005 levels. The (CBSCI) project will contribute significantly to advancing a biojet supply chain in this country.”
News Item A-6: Halifax-based Chorus Aviation, the parent of Canadian regional carrier, Jazz Aviation, has placed a firm order for 5 Bombardier CRJ900s valued at $229 million at list prices.
The five 76-seat CRJ900s, which will include 12C business class seats, will enter service with Jazz in early 2017 under the Air Canada Express brand as part of Jazz’s capacity purchase agreement with Air Canada (ACN). Chorus has also taken purchase rights for five additional CRJ900s.
“The addition of these new CRJ900s reduces unit costs and complements our fleet of Canadian-built Bombardier (BMB) turboprops and regional jets,” Chorus President & (CEO), Joseph Randell said.
Jazz also announced it will reconfigure its 16 75-seat CRJ705s to 76-seat aircraft with two classes, standardizing those cabins with those of the incoming CRJ900s. Both the new CRJ900s and the reconfigured CRJ705s will have seat back in-flight entertainment (IFE) systems and Gogo wireless Internet access.
Jazz will also reconfigure 21 Bombardier Q400 NextGen turboprops to add four seats, going from 74 to 78 seats in all-economy (Y) class configuration.
The reconfiguration of the 16 CRJ705s and 21 Q400s will be performed by Jazz’s maintenance and engineering division with assistance from Bombardier. The work is expected to be completed by the end of 2017.
May 2016: News Item A-1: Air Canada (ACN) commenced services to its latest USA destination on May 7, with (ACN) launching flights from Toronto Pearson (YYZ) to Jacksonville (JAX). The 1,476 km city pair will be operated by (ACN) 2x-weekly (Saturdays and Sundays) on board Air Canada Express’ E175 fleet.
Originally scheduled to commence on May 21, the launch date was brought forward because of The Players Championship golf tournament. “It is unusual to bring a route start date forward,” said Lisa Pierce, Senior Director USA Sales, Air Canada. She then went on to say: “Many Canadians love golf almost as much as going to Florida, so we are very pleased to adjust our schedule to accommodate fans attending The Players.” The route will face no direct competition.
On May 9, (ACN) launched services between Vancouver (YVR) and San Jose (SJC) on the new 1,318 km route. Operated on board (ACN)’s CRJ700 fleet, flights will be flown on the city pair, 2x-daily facing no incumbents.
Air Canada rouge commenced services between Toronto Pearson (YYZ) and London Gatwick (LGW) on May 19. The 5,737 km sector will be served by the Star Alliance (SAL) member daily on its 767-300s, with the new service facing direct competition from Air Transat (AIJ) (8x-weekly) and WestJet (WJI) (daily). Gatwick becomes the 3rd UK destination for Air Canada rouge, with it also serving Edinburgh and Manchester, while services to Glasgow will launch on June 14. Although London is a new market for Air Canada Rouge, mainline Air Canada (ACN) serves eight points in Canada from London Heathrow (LHR).
June 2016: News Item A-1: "Airlines Confront Threat of Cyberattacks" by (ATW) Aaron Karp, June 3, 2016.
Air Canada (ACN) President & (CEO) Calin Rovinescu said (ACN) is developing a comprehensive strategy to counter potential cyberattacks, and encouraged other airlines to take a similar approach. “Being protected against cyberattacks is not something I would consider a competitive advantage,” he said during a panel discussion at the (IATA) (AGM) in Dublin. “It’s something that’s valuable to share with other airlines, in my view.”
Rovinescu emphasized that securing an airline’s data and systems is “not the responsibility of only the (CIO)” and needs to be tackled from an airline-wide perspective. “I’d say we’re still in the early innings of getting out in front of this,” he said. “We start out with some scary numbers: Experts estimate that the amount of damage caused by cyberattacks last year was $500 billion and 94% of companies had some sort of attack.”
Rovinescu said Air Canada (ACN) identified 72 “critical business processes” and made security risk assessments on each one, identifying the company’s greatest vulnerabilities and developing plans to protect the data exchanged in those processes from hackers. “You have to start somewhere,” he said. “Instead of 72, maybe it should have been 172. We don’t have all the answers. Five years from now, there may be a different answer.”
USA Air Force Major General Linda Urrutia-Varhall, the Executive Director of the USA National Aviation Intelligence Integration Office, told the (AGM) that airlines face an “ecosystem of threats” regarding cyberattacks and that “the threats to aviation are not static and continue to evolve.” Airport kiosks, airline websites and Wi-Fi-connected aircraft create “a whole brand new horizon of threats,” she said.
Risk assessments are critical, she added. “There is no way you could lock down everything,” she explained. “Governments and corporations are still trying to figure out what to do. You can’t just shut everything down.”
“Not only are aircraft becoming more connected, they’re becoming more vulnerable,” Thales (THL) USA (CEO), Alan Pellegrini, also speaking on the panel, said. He dismissed claims by some hackers that it’s possible to gain access to flight deck controls by hacking into an aircraft’s in-flight entertainment (IFE) system. But there have been cases of hackers attempting to steal money being processed aboard commercial aircraft, he added.
Pellegrini said a “new level of security” is needed to protect airline data in the modern environment. “You have a lot of airline data sitting in a cloud somewhere,” he noted. “How secure is that?”
Rovinescu said that part of the process of setting up cyber-defenses is operating “under the assumption that you are going to be attacked” and preparing recovery plans in advance. There is not an endpoint to the process, he added: “This is not an overnight wonder. You can’t spike the ball and think you’ve achieved a solution. This is really a multi-year project.”
News Item A-2: Air Canada (ACN) Cargo and Cargojet Airways (CJT), a subsidiary of Cargojet Inc, began freighter service to Bogota and Lima. The service is flown with a (CJT) Boeing 767-300F. Also, Air Canada (ACN) Cargo will introduce freighter service to Europe from Toronto in the second half of 2016.
News Item A-3: Air Canada has finalized an order for 45 Bombardier CS300s, plus options for 30 additional aircraft.
October 2016: (AJW) Technique and Air Canada (ACN) have renewed a 5-year contract for slide and inflatable maintenance.
November 2016: News Item A-1: Air Canada (ACN) reported a 3rd-quarter 2016 net profit of +C$768 million/+$586.6 million, up +75.7% over net income of +C$437 million in the 2015 September quarter, as (ACN) continued to aggressively grow.
While global USA airlines (American Airlines (AAL), Delta Air Lines (DAL) and United Airlines (UAL)) competing with (ACN) have largely halted growth, (ACN) increased 3rd-quarter capacity by +20.9% year-over-year. “The capacity increase was primarily driven by additional Boeing 787 airplanes in the mainline fleet, the growth of Air Canada Rouge and additional seats on Boeing 777 airplanes.”
3rd-quarter traffic rose +18.9% year-over-year. “Consistent with (ACN)’s objective of increasing global international-to-international connecting traffic through its major Canadian hubs, the traffic growth in the 3rd quarter of 2016 reflected a +27.9% increase in lower-yielding connecting traffic via Canada to international destinations,” (ACN) said.
(ACN)’s 3rd-quarter revenue increased +11% year-over-year to C$4.5 billion, while expenses rose +11% to C$3.6 billion, producing operating income of +C$896 million, up +9.9% from +C$815 million in the prior-year period. 3rd-quarter system capacity rose +20.9% to 28.5 billion (ASM)s while traffic increased +18.9% to 24.3 billion (RPM)s, producing a load factor of 85.5% LF, down -1.5 point. Yield fell -7% to C$0.166.
1 DHC-8 402 (4533) delivery to Jazz Aviation (Air Canada Express).
December 2016: News Item A-1: Air Canada (ACN) plans to expand its USA transborder network when it starts its spring schedule in May 2017, adding 3 new destinations.
All of the new services will be operated by Air Canada Express regional aircraft. San Antonio, Memphis and Savannah, Georgia will be new Air Canada destinations served from Toronto nonstop. San Antonio and Memphis will be daily services, while Savanah will be 6x-weekly. Toronto - Savanah will be a seasonal route, while the San Antonio and Memphis routes will be served year-round.
In addition, Air Canada (ACN) will start daily Montreal - Dallas/Fort Worth service May 26 and 2x-daily Vancouver - Denver flights May 18. It will also convert its Vancouver - Phoenix route from a seasonal service to year-round service on May 1.
Air Canada (ACN) President Passenger Airlines Ben Smith said the expansion ties into (ACN)’s strategy of channeling USA passengers into its global network via its Toronto, Montreal, and Vancouver hubs.
News Item A-2: Halifax-based Chorus Aviation, the parent company of Canadian regional airline Jazz Aviation, reported a 3rd-quarter net profit of +C$20.1 million/+$15.3 million, >tripling the company’s +C$6.3 million net profit in (3Q) 2015.
3rd-quarter operating revenue of C$331.1 million was down -19.7% year-over-year and expenses decreased -22.2% to C$282.6 million. Operating income was C$48.5 million, down -1.3% from an operating profit of C$19.1 million in (3Q) 2015.
“[During the quarter] progress was made in advancing our revenue diversification strategy as evidenced by a +51% increase quarter-over-quarter in our aircraft leasing revenue under the capacity purchase agreement (CPA) with Air Canada (ACN)],” Chorus President & (CEO) Joe Randell said. “Our focus in the 3rd quarter centered on advancing the business diversification strategy, improving Jazz’s cost competitiveness, fleet modernization, and establishing Voyageur’s Avparts business.”
Chorus said the company is seeking to increase its regional aircraft leasing activity outside of the (CPA). “Management recognizes regional aircraft leasing as a growing market segment with few established providers,” the company said November 9, announcing plans to purchase and lease 4 new CRJ1000s to Spanish regional carrier Air Nostrum.
Chorus has secured a letter of offer from Export Development Canada (EDC) for debt financing of up to 80% of the net purchase price of each CRJ1000. The 4 aircraft are scheduled to be delivered in November and December 2016, and July and October 2017. Chorus expects definitive documentation for the (EDC) loan and leases with Air Nostrum for the 2016 aircraft deliveries to be completed in the 4th quarter of 2016. Air Nostrum is a franchise partner with Spanish flag carrier Iberia (IBE).
December 2016: News Item A-1: Air Canada (ACN) and Hong Kong flag carrier, Cathay Pacific (CAT) have agreed to code share, the airlines announced December 22. The arrangement will go into effect when tickets go on sale January 12, 2017 for flights beginning January 19.
(ACN) will offer code share services on (CAT) and Cathay Dragon (DRG) flights connecting with Air Canada (ACN)’s service to Hong Kong from Vancouver and Toronto. (ACN) will place its code on (CAT) and (DRG) flights to Manila and Cebu in the Philippines; Kuala Lumpur, Malaysia; Ho Chi Minh City and Hanoi in Vietnam; and Bangkok, Phuket and Chiang Mai in Thailand.
(CAT) passengers flying from Hong Kong to Vancouver and Toronto will be able to fly onward on Cathay Pacific (CAT)-coded Air Canada (ACN) flights to “all major cities across Canada,” (ACN) said, including Montreal, Winnipeg, Edmonton, Calgary, Ottawa, Quebec, and Halifax, among others.
Members of each airline’s loyalty programs will be able to earn reciprocal mileage accrual and redemption benefits while flying on these code share routes. (ACN) is a Star (SAL) Alliance member, while Cathay belongs to the Oneworld (ONW) Alliance.
(CAT) operates 2x-daily flights to Vancouver from Hong Kong, utilizing Boeing 777-300ER airplanes. Beginning March 28, 2017, (CAT) will add 3 additional Hong Kong - Vancouver flights, utilizing Airbus A350-900 aircraft. (CAT) also operates 10x-weekly Hong Kong - Toronto service. (ACN) operates daily flights from both Toronto and Vancouver to Hong Kong, utilizing 777-200ER airplanes on the Toronto - Hong Kong route and 777-300ERs on the Vancouver - Hong Kong route.
News Item A-2: Air Canada (ACN) plans to expand its USA transborder network when it starts its spring schedule in May 2017, adding 3 new destinations.
All of the new services will be operated by Air Canada Express regional aircraft. San Antonio, Memphis and Savannah, Georgia will be new (ACN) destinations served from Toronto nonstop. San Antonio and Memphis will be daily services while Savanah will be 6x-weekly. Toronto - Savanah will be a seasonal route, while the San Antonio and Memphis routes will be served year-round.
In addition, (ACN) will start daily Montreal - Dallas/Fort Worth service May 26 and 2x-daily Vancouver - Denver flights May 18. It will also convert its Vancouver - Phoenix route from a seasonal service to year-round service May 1.
(ACN) President Passenger Airlines Ben Smith said the expansion ties into (ACN)’s strategy of channeling USA passengers into its global network via its Toronto, Montreal and Vancouver hubs.
News Item A-3: Air Canada rouge began 2x-weekly nonstop Montreal - Costa Rica Boeing 767-300ER service on December 22, 2016 through April 23, 2017.
News Item A-4: Jazz Technical Services has a 2-year CommutAir contract for Dash 8 heavy maintenance.
News Item A-5: Chorus Aviation, the parent company of Canadian regional carrier Jazz Aviation, will establish an aircraft leasing subsidiary, Chorus Aviation Capital.
Halifax-based Chorus has been seeking to diversify its business beyond Jazz’s capacity purchase agreement with Air Canada (ACN), which provides the bulk of the company’s revenue. It began engaging in leasing seriously last year, and took the leasing business a step further last month when it announced it was buying and leasing 4 Bombardier CRJ1000s to Spain’s Air Nostrum. The 1st of those CRJ1000s was delivered to Air Nostrum in November and the 2nd is expected to be delivered this month.
Toronto-based Fairfax Financial Holdings will invest C$200 million/$149.7 million in Chorus to buttress the new leasing subsidiary, which is expected to focus on leasing regional jets and turboprop aircraft to airlines around the world.
Chorus President & (CEO) Joe Randell called the establishment of the leasing subsidiary a “significant milestone in support of our vision to deliver regional aviation to the world. We have been building our capabilities in aircraft leasing, and are encouraged both by our successes to date and the opportunities we see in this segment. The cost-effective and flexible source of capital provided by Fairfax will enable us to accelerate and strengthen our position as a leading player in this growing business segment.”
January 2017: 2 787-9 (37175, C-FRSA; 37181, C-FRSE) deliveries.
3 CRJ900LR (15421, C-FJZL; 15423, C-GJZS; 15424, C-GJZV) and 1 Dash 8 402 (4174, C-FSRY) deliveries to Jazz Aviation (Air Canada Express).
February 2017: News Item A-1: Air Canada (ACN) reported +C$876 million/+$650.3 million net profit for 2016, nearly tripling (ACN)’s +C$308 million net profit in 2015.
(ACN)’s full-year consolidated operating revenue was C$14.7 billion, up +5.8% over C$13.9 billion in 2015; operating expenses totaled C$13.3 billion, up +7.8% from C$12.4 billion in 2015. Operating income for the year totaled C$1.3 billion, down -10.1% from C$1.5 billion in 2015.
Excluding special items, (ACN)’s full-year (EBITDAR) totaled $2.8 billion, up +8.9% over 2015. (ACN)’s full-year operating margin was 9.2%, down -1.6 points from 2015, and its full-year (ROIC) was 14.7%, compared to 18.3% in 2015.
Full-year passenger traffic grew +13.2% to 76.5 billion (RPM)s as capacity increased +14.7% to 92.7 billion (ASM)s, producing a full-year passenger load factor of 82.5% LF, down -1 point from 2015. The airline opened 28 new routes in 2016 and 18 additional routes are on track to be launched in 2017.
Full-year (PRASM) was down -7.7% to C13.9¢ and (CASM) declined -6% to C14.4¢. (ACN)’s full-year yield decreased -6.6% (YOY) to C16.8¢, which the company attributed to a +5.1% increase in average stage length combined with an increase in the number of seats in long-haul leisure markets. Lower carrier surcharges, growth in international connecting traffic and competitive pressures in the domestic, European and Pacific markets also contributed to the yield decrease, the company said.
Air Canada (ACN)’s 2016 4th-quarter operating revenue increased 2.0% year-over-year (YOY) to C$3.4 billion and operating expenses rose +12.7% (YOY) to C$3.4 billion, producing C$18 million in 4th-quarter operating income, a +88.6% decrease from C$158 million in (4Q) 2015. (ACN) reported a 2016 4th-quarter net loss of -C$179 million, deepened from (ACN)’s C$116 million net loss in (4Q) 2015. 4th-quarter yield was down -7.2%, also attributable to the increase in seats, lower fares in long-haul markets, lower carrier surcharges and international traffic growth, (ACN) said.
(ACN)’s combined mainline and Air Canada rouge fleet totaled 213 airplanes as of December 31, 2016. 9 Boeing 787s and 2 777s were introduced into the mainline fleet in 2016, and the airline ordered 45 Bombardier CS300s with options for an additional +30 of the model. In 2017, (ACN) expects to add +9 787-9s and 2 737 MAX-8s to its mainline fleet, while also removing 6 767-300ERs. 4 new 767-300ERs will enter the Air Canada rouge fleet in 2017, bringing the combined fleet to 222 by the end of 2017.
“In 2016 [we] achieved outstanding results, surpassing the previous records for (EBITDAR), total revenues and liquidity levels, underscoring the effectiveness of our business strategy and improved competitive position,” (ACN) President & (CEO) Calin Rovinescu said. “Our share price jumped +34% in 2016 (more than that of any of our North American airline peers and nearly double the 17.5% return on the (S&P)/(TSX) composite index.”
“Looking at 2017, we see a continued strong demand environment and growth in 6th freedom traffic though our major Canadian hubs. Taking advantage of our broad network and locations as ideal transit points between international and connecting traffic is key to our strategy going forward,” Rovinescu said. “We expect to achieve an (EBITDAR) margin between 15% to 18% even with our current forecast of rising fuel prices and our (ROIC) is projected to be between 9% to 12%.”
News Item A-2: Air Canada (ACN) on February 9 unveiled a new livery for its entire fleet of 300 mainline and regional airplanes, which are being repainted in a “bold black and white design that highlights its iconic red maple leaf encircled ensign, or ‘rondelle,’ that returns to the tail of the Canadian flag carrier’s fleet after an absence of 24 years." See attached - "ACN-787-8 New Livery-A/B."
News Item A-3: Air Canada (ACN) commenced flights between Vancouver (YVR) and Dallas/Fort Worth (DFW) on February 5. Flown on (ACN)’s CRJ 700s, the 2,818 km Canada – USA city pair will be operated 6x-weekly. (ACN) joins Oneworld (ONW) Alliance carrier, American Airlines (AAL) on the route, with (AAL) already linking the 2 airports with 12x-weekly flights. (ACN) now serves a total of 15 USA airports from its Vancouver hub, of which 3 are in Hawaii. (ACN) already offers service to Dallas/Fort Worth from its biggest base at Toronto Pearson. On routes between Canada and the USA, (ACN) now accounts for 45% of seat capacity with WestJet (WJI) its nearest rival on 19%. Both Delta Air Lines (DAL) and United Airlines (UAL) have just >9% of capacity.
News Item A-4: Air Canada (ACN) on February 16 made Montreal (YUL) its 3rd Canadian hub to link directly with China, launching a daily 787-8-operated service to Shanghai Pudong (PVG). (ACN), the Star (SAL) Alliance member already serves Shanghai from Toronto Pearson and Vancouver. “With the launch of Montreal - Shanghai non-stop service today, we are delighted to inaugurate (ACN)’s 1st direct flights between Montreal and Asia, building on Air Canada (ACN)’s success in the rapidly growing Chinese market,” said Benjamin Smith, President, Passenger Airlines at (ACN).
“This also marks the introduction of (ACN)’s 1st 787-8 service from Montreal featuring our industry-leading international product, and further underlines our commitment to expand our global reach from Montreal, reinforcing it as a strategic hub that offers easy and convenient connections from points throughout Quebec, Atlantic Canada and the USA.” No other airline currently flies the 11,347 km link between Montreal and Shanghai, however Air China (BEJ) does offer flights between Beijing and Montreal, the Canadian airport’s only other Chinese service.
A320-211 (233, C-FTJP), registration canceled.
March 2017: News Item A-1: Air Canada (ACN) will grow its transborder network by adding 2 new USA services this summer. (ACN) has announced the return of its year-round service from Montreal to Washington Dulles from June 19. The daily nonstop Air Canada Express service will be operated with 50-seat Bombardier CRJ100 aircraft.
Additionally, (ACN) said it would introduce a daily summer seasonal service between Vancouver (YVR) and Boston from June 23 to September 4. The service will use a 120-seat Airbus A319, configured with business and economy class.
(ACN) President Passenger Airlines Benjamin Smith said the new service complements its existing Boston services from Toronto, Montreal, Ottawa and Halifax. He added the new nonstop flights “will shave 2 hours of travel time for customers traveling between the Canadian west coast and the USA NE seaboard. Customers traveling from the Greater Boston area, the 6th most populous area in the USA, will also enjoy convenient connections at our (YVR) hub to western Canada and to our daily flights to both Sydney and Brisbane, Australia, featuring competitive elapsed times.”
News Item A-2: "European Commission (EC) Re-imposes Cargo Cartel Penalties" by Alan Dron firstname.lastname@example.org, March 17, 2017.
The European Commission (EC) has reinstated fines totaling €776 million/$834 million on 11 airlines for operating a price-fixing cartel on air freight from 1999 to 2006. More legal hearings are likely, as at least 1 of the carriers immediately said it would appeal the decision.
The (EC) originally imposed the penalties in November 2010, but these were annulled by a decision of the European Union’s (EU) General Court in December 2015 on procedural grounds, which ruled there was a technical discrepancy in the prosecution. In a March 17 announcement, the (EC) said it had resolved the discrepancy and was re-imposing the financial penalties on 11 air cargo carriers: Air Canada (ACN), Air France (AFA)/(KLM), British Airways (BAB), Luxembourg-based Cargolux (CLX), Hong Kong flag carrier Cathay Pacific Airways (CAT), Japan Airlines (JAL)/(JSA), (LAN) Chile, Dutch cargo carrier Martinair (MTH), Australia's Qantas (QAN), (SAS) Scandinavian Airlines and Singapore Airlines (SIA).
The (EC) said that a 12th member of the cartel, Lufthansa (DLH) and its subsidiary Swiss International Air Lines (CSR), was spared from the financial penalties after it applied for immunity in 2005 and revealed details of the alleged arrangements between the airlines.
These were said to consist of collusion between the airlines at both bilateral and multilateral levels to fix the level of fuel and security surcharges on cargo. After the initial verdict, all the airlines except Qantas (QAN) appealed. The financial penalty thus became final for QAN). Millions of businesses depend on air cargo services, which carry >20% of all (EU) imports and nearly 30% of (EU) exports,” (EC) Commissioner Competition Policy Margrethe Vestager said. “Working together in a cartel rather than competing to offer better services to customers does not fly with the (EC). Today’s decision ensures that companies that were part of the air cargo cartel are sanctioned for their behavior.”
The (EU) can fine companies participating in cartels up to 10% of their revenue in the year preceding the adoption of a verdict. (SAS) immediately said it would appeal. “We strongly question the European Commission’s move to re-impose a decision that has already been annulled once by the [General Court],” (SAS) General Counsel Marie Wohlfahrt said. “Throughout the entire process, (SAS) has cooperated with the (EC) and, for >11 years, has argued against the (EC)’s perception that (SAS) Cargo had participated in a global cartel.”
Nevertheless, the fine would be recognized as a nonrecurring expense by (SAS) in its earnings for (2Q) 2016/2017. Air France (AFA) - (KLM), which will be fined €325 million if the penalties become final, said it would analyze the new decision and whether to appeal it again at the General Court. It added that the fines had been covered in its financial accounts since 2010.
News Item A-3: Responding to a reported tripling of recreational unmanned aerial vehicle (UAV) incidents since 2014, Transport Canada issued new operational rules March 16, effective immediately. The new rules affect operations of recreational (UAV)s weighing between 250g/.55 lb and 35kg/77 lbs, and include the specification that recreational operators cannot fly (UAV)s within 9 km/5.6 miles of the center of any airport, heliport, aerodrome or water aerodrome where aircraft take off and land. The rules will be in effect for a period of up to 1 year, until permanent regulations are put in place.
Operators of (UAV)s for commercial, academic or research purposes will not be affected, Transport Canada said, adding that rules already in place “are effective and most commercial users operate their [UAVs] in a safe manner.” Also included in the measures are prohibitions on flying recreational (UAV)s at night. Additionally, (UAV)s cannot be flown higher than 90 m/295 ft and nor can they be flown within 75 m/246 ft of buildings, vehicles or people. Finally, all recreational (UAV)s must be marked with the operator’s contact information. Failure to comply with the new flying restrictions and conditions could lead to fines of up to C$3,000/$2,231, Transport Canada said.
“I take very seriously the increased risk to aviation safety and to people on the ground caused by [UAVs],” Canadian Transport Minister Marc Garneau said while announcing the new measures at Billy Bishop Toronto City Airport March 16. “That is why I am proceeding with this measure which takes effect immediately, to enhance the safety of aviation and the public while we work to bring into force permanent regulations.” According to Transport Canada, (UAV) incidents increased from 41 in 2014 to 148 in 2016.
WestJet (WJI) and Jazz Aviation (ACN), plus airports in Toronto, Vancouver, Calgary and Halifax all voiced quick support of the measures. “We are pleased that Minister Garneau has taken this step to immediately ensure the safety of our [passengers], crew and aircraft with the implementation of new rules around [UAVs],” (WJI) Executive VP Operations Cam Kenyon said. “We look forward to the rules becoming permanent law in the future.” Jazz (ACN) President Colin Copp also praised the announcement, saying recreational (UAV) use “is a matter of great concern for Jazz.”
“The safety of our passengers is our top priority, and implementing proactive measures such as these is vital to mitigating against evolving safety risks,” Greater Toronto Airports Authority corporate safety and security director Jennifer Sullivan said. “Flying of recreational [UAVs] near airports poses an unnecessary risk to aviation,” Calgary Airport Authority VP Operations Bernie Humphries said. “Today’s announcement is a significant step toward reducing risks from [UAV] activity.”
“Transport Canada’s continued efforts address the dangers of recreational [UAV] use,” Vancouver International Airport (YVR) President & (CEO) Craig Richmond said. “We are committed to working with our partners to ensure that [UAV] operators understand and comply with the new rules.” In 2015, (YVR) installed “No Drone Zone” signage across Sea Island, the island on which (YVR) and the small residential village of Burkeville reside. "The introduction of this temporary order will help protect airspace users and the traveling public. It is particularly important to draw attention to the key role that the Royal Canadian Mounted Police (RCMP) and local law enforcement agencies play in addressing the obvious safety risk posed by the reckless operation of (UAV)s," (IATA) Air Traffic Management & Infrastructure Director Rob Eagles said. "Looking ahead, advanced technology will provide new ways to appropriately regulate recreational, commercial and state (UAV) operations."
The Drone Manufacturers Alliance (DMA), which represents (UAV) manufacturers 3DR, DJI, GoPro and Parrot, blasted the regulations, saying they would “hurt innovation and education without a corresponding improvement in safety.” “The overwhelming majority of Canadian drone pilots operate safely and responsibly, and they are the ones who will be hurt by far-reaching restrictions, not the tiny number of irresponsible operators who have already violated existing drone safety rules,” (DMA) Director Kara Calvert said. “Technology and education provide a better solution than a hastily written ban."
2 767-375ER (30108, C-GEOU; 30112, C-GEOQ), (GECAS) (GEF) leased to Air Canada Rouge.
April 2017: "Canada's Transport Minister: United Airlines (UAL) Incident Won't Be Tolerated" by Charmaine Noronha, Associated Press (AP), April 13, 2017.
Canada will introduce legislation to address the issue of travelers being bumped from flights, the country's Transportation Minister Marc Garneau said April 13.
Marc Garneau sent a letter to the heads of every airline flying in and out of Canada to warn them that an incident like the one that injured an American doctor earlier this week cannot happen in Canada.
The letter comes 5 days after Dr David Dao, 69, was dragged off a United Airlines (UAL) flight in Chicago after refusing to leave his seat to accommodate (UAL) airline crew members. He suffered a concussion, a broken nose and 2 missing teeth when security officers forced him off the plane against his will, banging his head on armrests in the process, according to his lawyer. He has hired lawyers who told a news conference April 13 they expected to file a lawsuit against (UAL).
Garneau's warning comes ahead of legislation to introduce a passengers' bill of rights in Canada. The legislation, expected this spring, is to outline what passengers can expect from airlines in situations such as bumping from overbooked planes or for lost or damaged luggage. "When passengers purchase an airline ticket, they expect and deserve that the airline will fulfill its part of the transaction," Garneau wrote. "When that agreement is not fulfilled, passengers are entitled to clear, transparent and enforceable compensation."
He said the legislation will be introduced in the coming weeks and that co-operation from the airlines will be essential to further improve the traveler experience.
May 2017: News Item A-1: Air Canada (ACN) incurred a 2017 1st-quarter net loss of -C$37 million/-$27.8 million, reversed from a net profit of +C$101 million in the 2016 March quarter, as rising fuel costs hit the bottom line.
(ACN) executives pointed to record 1st-quarter revenue of $3.6 billion, up +9% year-over-year (YOY), and the fact that (ACN) continues to aggressively grow, which they believe will pay off long term. “This year represents the 3rd year of planned significant capacity growth as we execute our international expansion strategy,” President & (CEO) Calin Rovinescu said, noting that capacity growth “will begin to slow in 2018.”
1st-quarter expenses soared +16% (YOY) to C$3.7 billion, as higher fuel prices and fast-paced capacity expansion led to a +48%, or C$213 million, (YOY) jump in aircraft fuel costs to C$659 million. (ACN) posted a 1st-quarter operating loss of -C$54 million, reversed from an operating profit of +C$154 million in the prior-year quarter.
1st-quarter traffic rose +14% (YOY) to 18.3 billion (RPM)s on a +15.4% increase in capacity to 22.9 billion ASMs, producing a load factor of 80.1% LF, down -1 point. Yield fell -5.1% to C$0.165.
(ACN) management attributed the yield decline to a +6.5% (YOY) increase in average flight stage length attributed to long-haul international expansion; an unfavorable currency impact of C$31 million; a higher proportion of seats operated by long-haul leisure brand "rouge;" and growing numbers of international connecting passengers on domestic flights.
News Item A-2: Canadian arrivals to the Caribbean fell last year for 1st time since 1994 (Caribbean Tourism Organizatrion).
News Item A-3: Air Canada (ACN) on May 1 commenced 3 new transborder routes from Toronto Pearson (YYZ) to Memphis (MEM), San Antonio (SAT) and Savannah (SAV). The 2,290 km link to San Antonio in Texas, the longest of the 3 routes, is flown on (ACN)’s fleet of E175s, while the 1,305 km city pairing with Memphis in Tennessee and the 1,291-km sector to Savannah in Georgia is operated on (ACN)’s CRJ 200s. All are flown daily, and none of (ACN)’s 3 new routes face any direct competition.
News Item A-4: Air Canada (ACN) has expanded its presence at Denver (DEN) by beginning 2x-daily flights from Vancouver (YVR). (ACN) already serves the Colorado city from Montreal and Toronto Pearson.
(ACN) will operate the 1,788 km route, which launched on May 18, 2x-daily on its fleet of CRJ 700s. (ACN) joins fellow Star (SAL) Alliance member United Airlines (UAL) on the route, with the latter already offering 20x-weekly flights. By launching flights to Denver, (ACN) now links Vancouver to 15 airports in the USA on 220 weekly flights.
News Item A-5: Chorus, operating as Air Canada Express, will purchase 6 currently-flying ATR 72-600s. 3 are flying with Flybe (BEE) and 3 with Virgin Australia (VAU). Chorus is trying to diversify its earnings stream to lower its overreliance on flying planes for Air Canada (ACN). Among its initiatives is developing a regional aircraft leasing business.
2 787-9 (37178, C-FRSR; 37184, C-FRTG) (Charleston No 848 & No 849) for Air Canada (ACN) and 767-375ER (25121, C-GSCA) for Air Canada rouge deliveries.
June 2017: News Item A-1: Air Canada Rouge launched 3x-weekly seasonal Montreal to Trudeau Boeing 767-300ER seasonal services through October 13. Rouge will also begin 3x-weekly Montreal to Reykjavik A319-100 seasonal service from June 23 to October 13; 4x-weekly Montreal to Algiers 767-300ER seasonal service from July 1 to October 13; and weekly Toronto to Cartagena Airbus A319 service from December 18, 2017 to April 9, 2018.
News Item A-2: 4 737 MAX 8 (61220, C-FSNU; 61222, C-FSNQ; 61223, C-FSOI; 61224, C-FSOC) deliveries to (ACN). A319-112 (1577, C-GITR) and A321-211 (5038, C-FYXF) deliveries to Air Canada rouge.
July 2017: News Item A-1: INCDT: A preliminary summary issued by the Transportation Safety Board of Canada (TSB) said Air Canada (ACN) flight 759 overflew 4 aircraft on the taxiway parallel to runway 28R at the San Francisco International Airport (SFO) near midnight on July 7. The (TSB) estimated the A320-200, which was lined up on the taxiway rather than the runway, overflew the 1st 2 aircraft by 100 ft, the 3rd aircraft by 200 ft and the 4th by 300 ft.
News Item A-2: Air Canada (ACN) now serves 2 destinations in India following the launch of flights between Toronto Pearson (YYZ) and Mumbai (BOM) on July 1. (ACN) will operate the 12,488 km sector 4x-weekly on its fleet of 787-9s.
“Air Canada is always excited to launch a new route and this is particularly gratifying given Mumbai is India’s largest city and regarded as its financial, commercial and entertainment capital.
This flight is the 3rd route we have started to India in <2 years, demonstrating our commitment to this vibrant market as well as to our continuing international expansion strategy. This is the only non-stop service between Canada and Mumbai and positions (ACN) as offering the best coverage of any carrier operating between Canada and India,” said Benjamin Smith, President, Passenger Airlines at Air Canada.
(ACN) already links Pearson, as well as Vancouver, to Delhi. The route between Pearson and Mumbai is now the 3rd longest on the (ACN) network, with it falling just short of (ACN)’s link from Pearson to Hong Kong (12,545 km) and Vancouver to Sydney (12,493 km).
As stated by Smith, no other carrier currently links Mumbai to Canada, with this service now a monopoly for (ACN).
(ACN), the Canadian flag carrier serves 10 destinations in the Middle East and Asia from Pearson following the commencement of services to Mumbai, with it already serving Beijing, Delhi, Dubai, Hong Kong, Seoul Incheon, Shanghai Pudong, Tel Aviv and Tokyo’s Haneda and Narita airports.
Air Canada rouge began 4x-weekly Montreal to Algiers Boeing 767-300ER service.
August 2017: Air Canada (ACN) will launch Montreal Trudeau to Tokyo Narita Boeing 787 flights in June 2018, the latest move by (ACN) to make Montreal into its 3rd major international gateway along with Toronto and Vancouver.
Montreal-based Air Canada (ACN) is aiming to use the 787, of which it has taken delivery of >30 so far, to make Canadian hubs into transit points for international passengers, particularly USA passengers traveling to points around the globe.
Toronto and Vancouver are already major international hubs for (ACN) and this year Montreal has become formidable in its own right.
In 2017 alone, (ACN) has launched flights from Montreal to Shanghai, Marseille (France), Dallas/Fort Worth, Washington Dulles, Reykjavik, Tel Aviv, and Algiers. It will start Montreal to Lima flights in December 2017.
“(ACN) is continuing its global expansion by strategically building its Montreal hub,” (ACN) President & (CEO) Calin Rovinescu said.
The new Narita 787 flight will be the only nonstop connection between Montreal and Tokyo. (ACN) currently serves Tokyo from Toronto, Vancouver and Calgary.
(ACN) said it will schedule the Montreal to Narita flights to optimize connectivity to Quebec City, Ottawa, Halifax and Charlottetown in Canada and Boston, Philadelphia and Orlando in the USA.
October 2017: "Strong Traffic Growth Propels Air Canada to $763 million 3Q Net Profit" by (ATW) Mark Nensel email@example.com October 26, 2017.
Passenger revenue and strong yield performance on Air Canada (ACN)’s Atlantic routes helped to propel record 2017 third-quarter results, as (ACN) reported +C$950 million/+$763 million in adjusted net income, up +15.7% from +$821 million in adjusted net income for (3Q) 2016.
(ACN) posted a +C$1.8 billion non-adjusted net profit for the quarter, more than doubling its +C$768 million net income in (3Q) 2016. The figure, however, includes a net income tax recovery of C$793 million, representing deferred income taxes the company recorded in its (3Q) results. (ACN)’s (3Q) EBITDAR was C$1.4 billion, a C$140 million increase over the 2016 September quarter.
Operating revenue for the quarter totaled C$4.9 billion, up +9.6% year-over-year (YOY) driven by increased passenger traffic and improved yields, especially in its business cabin segment, where revenues were up +C$90 million (YOY), producing a +5% yield growth. Cargo revenue, too, showed strong +38% (YOY) growth to C$179 million.
Passenger revenue on (ACN)’s transatlantic routes, where the company took on insurgent European (LCC)s, increased +17.7% (YOY) to C$1.3 billion in the 3rd quarter, driving yield up +3.5%. Traffic on the routes was up +13.7% and capacity increased +13.3%.
Operating expenses, driven by a +9.1% increase in capacity as well as +17% higher fuel prices, totaled C$3.9 billion, up +9% (YOY). (ACN)’s 3rd-quarter operating income was a company record C$1 billion, up +12.1%, and its (EBITDAR) operating margin was 28.4%, also a company record.
(ACN)’s (3Q) traffic increased +8.8% to 26.5 billion (RPM)s on a +9.1% increase in capacity to 31.1 billion (ASM)s, resulting in an 85.3% LF passenger load factor for the quarter, down -0.2 point (YOY). Yield was up +0.4% to 16.6 cents. (PRASM) growth was largely flat (up +0.1%), (RASM) increased only +0.5% and (CASM) remained flat (YOY).
“Our new business model is firing on all cylinders, and making (ACN) not only profitable today but positioning it to be sustainably profitable for the long term,” (ACN) (CEO) Calin Rovinescu said in an October 25 conference call with analysts and reporters. “We still see many opportunities before us. We affirmed our confidence in the future by setting for ourselves more ambitious financial targets for the next 3 years.”
Rovinescu said (ACN) will continue to focus on its global network. During the quarter, (ACN) introduced roughly a dozen new international routes or expanded services set to launch in 2018, and will include new routes from Montreal, Toronto and Vancouver to destinations including Shannon, Porto, Bucharest and Zagreb.
“And we continue to look for opportunities to strategically build a network—including through additional 6th Freedom connecting traffic,” Rovinescu said. “But as we’ve said, our capacity growth will begin to taper with the completion of our wide body program and be replaced with a narrow body replacement program, which will further reduce unit costs.”
In the past 9 months, (ACN) has taken delivery of 8 new Boeing 787-9s. An additional 787-9 is scheduled for delivery during the 4th quarter, with +5 more to come by the end of 2018, and +2 more to come in 2019.
“We will take the delivery of our 1st Boeing 737 MAX 8 airplane in the 4th quarter, beginning the rejuvenation and optimization of our narrow body fleet,” (ACN) President Passenger Airlines Benjamin Smith said. 2 737 MAX 8s are scheduled to arrive by the end of 2017, with an additional +16 expected by the end of 2018. An additional 43 of the 61 737 MAX airplanes (ACN) has on order will be introduced into the fleet between 2019 and 2021, replacing existing airplanes in the mainline fleet. Deliveries of the 1st 25 of 45 Bombardier CS300 aircraft are scheduled to begin in late 2019 and extend through 2022; these will replace (ACN)’s existing fleet of Embraer E190s.
Smith said an “industry-leading (IFE) system” and satellite Wi-Fi will be installed on the 737 MAX 8s at the time of delivery. “The same standard of satellite Wi-Fi continues to be installed across our wide body airplanes as well as our entire rouge fleet,” Smith said. “The technology will be fully operational on several of the airplanes at the beginning of the 4th quarter with the completion of this program on our 787 and 777 fleets, as well as our rouge 767 fleet, by the end of 2018, and the completion on our Airbus A330s by March 2019.”
As of September 30, (ACN) and Air Canada rouge’s combined fleet comprised 96 wide bodies and 125 narrow bodies, for 221 total airplanes. By the end of 2018, the fleet will total 233 airplanes, consisting of 98 wide bodies and 135 narrow bodies.
In its end-of-year 2017 guidance, (ACN) expects to achieve an annual (EBITDAR) margin of 17% to 19%.
December 2017: News Item A-1: Air Canada (ACN) introduced service to Melbourne, Australia from Vancouver on December 1 adding to its impressive roll call of new routes from Vancouver (YVR) airport this year to Dallas/Fort Worth, Denver, Taipei Taoyuan, Nagoya, Frankfurt and London Gatwick.
(ACN) marked the 1st ever 787-9 direct, non-stop flight from Canada to Melbourne. The new route offers a seasonal 4x-weekly service until February 4, before beginning a year-round service in June 2018.
“We have a lot to celebrate at (YVR) this month. With the new (ACN) services to Melbourne, Orlando and Yellowknife in December, passengers have even more travel options this winter season,” said Craig Richmond, President & (CEO), Vancouver Airport Authority. “We are also thrilled that (ACN) has announced year-round service to Melbourne, prior to the start of the seasonal service. This is an incredible achievement for our airline partner and showcases (ACN)'s commitment to growing their transpacific hub at YVR.” With existing services to Sydney and Brisbane, Australia, this new Melbourne service, operated on its 3 class, 298-seat 787-9 fleet and facing no direct competition, becomes (ACN)’s 3rd route to Australia from Vancouver.
News Item A-2: Air Canada rouge will launch daily, Montreal to Baltimore (BWI) Bombardier CRJ service from May 17, 2018; 3x-weekly Montreal to Victoria service from June 22, 2018 to October 9, 2018; and daily Montreal to Pittsburgh service on May 17, 2018.
News Item A-3: "Air Canada Boeing 737 MAX 8 Enters Service" by Linda Blachly firstname.lastname@example.org, December 12, 2017.
Air Canada (ACN) launched Boeing 737 MAX 8 operations on the Toronto to Calgary route on December 11.
(ACN), the Canadian flag carrier has 61 firm orders for the 737 MAX, scheduled for delivery by 2021, with 18 to enter the fleet by the end of 2018.
The 737 MAX’s 1st scheduled flights in North America include service to Toronto, Calgary, Vancouver and Montreal. The airplane is also scheduled to operate internationally to Keflavik, Dublin and Shannon starting in summer 2018.
(ACN) has configured the 737 MAX in 2 cabins of service, North American Business and Economy. Features of the new airplanes include:
* Improved seats and innovative (LED) mood lighting along the ceiling;
* An upgraded IFE system with a new 15 language user interface.
* Coming soon, passengers will be able to stream video and audio to their own devices;
* Faster Wi-Fi from early 2018;
* Upgraded overhead storage space compartments;
* 40% less noise in the cabin;
* More fuel efficiency; the 737 MAX uses -20% less fuel per seat than the original Next-Generation 737.
News Item A-4: "Air China, Air Canada Expand Partnership" by Katie Cantle, (ATW) Plus December 13, 2017.
Air Canada (ACN) and Air China (BEJ) will expand their mutual code share services and lounge agreement in time for the 2018 Canada to China Year of Tourism. The expanded code share cooperation is planned to become effective in April 2018, subject to regulatory and government approvals. (BEJ) will place its code on (ACN)’s new daily Montreal to Shanghai flight, as well as (ACN)’s flights from Vancouver to Victoria, Kelowna, Saskatoon, and Regina.
February 2018: News Item A-1: "Air Canada Doubles Annual Profit with Passenger, Route Growth" by Mark Nensel, (ATW) Daily News, February 16, 2018.
Air Canada (ACN) posted a +C$2 billion net profit/US$1.6 billion for 2017 (more than doubling (ACN)'s 2016 C$876 million net income) driven by a +11.3% increase in passenger traffic producing a +10.7% rise in revenues.
"[In 2017] we profitably expanded our global network with 30 new routes launched [and] carried a record 48 million customers, while maintaining our focus on cost discipline and continuing to improve margins," (ACN) President & (CEO) Calin Rovinescu said. "We achieved our 5th consecutive year of record (EBITDAR) and our unrestricted liquidity amounted to US$4.2 billion at year-end."
(ACN)'s full-year revenue totaled C$16.3 billion, up nearly C$1.6 billion from 2016. System passenger revenue increased +10.1% year-over-year (YOY) to US$14.5 billion, while cargo revenue grew +27% to 650 million. (ACN) increased its average stage length by 4.8% during the year, reducing system yield by 2.7 points. Business cabin revenues increased +13.4% (YOY) to US$334 million.
Capacity at (ACN) increased +11.6% over the year to 103.5 billion (ASM)s. Combined with a +28.4% company-wide rise in fuel expenses, these 2 factors drove up overall operating expenses to C$14.9 billion, a +11.7% (YOY) jump. (ACN)'s full-year operating profit came to +C$1.4 billion, up +1.4% (YOY).
Total passenger traffic reached 85.1 billion (RPM)s; passenger load factor for the year was 82.3% LF, down slightly (-0.2 point) from 2016. Yield for the year also dipped slightly (-0.1 point) to 16.7 cents. (PRASM) also showed a modest -0.2 point decline to 13.7 cents. (CASM) for the year was unchanged at 14.4 cents.
"In 2018, our wide body fleet renewal will be substantially completed as our mainline narrow body replacement program accelerates," Rovinescu said, adding the company will continue investing in new aircraft, a new loyalty program, and improvements in technology and airport services.
Looking forward, Rovinescu said (ACN) will initiate a new cost transformation program "to further entrench cost discipline into our (DNA) and to secure an additional US$250 million in savings by the end of 2019."
As of December 31, 2017, (ACN)'s fleet totaled 224 aircraft, with its mainline fleet comprised of a mix of 75 Airbus narrow bodies, 73 Airbus and Boeing wide bodies, 2 Boeing narrow bodies and 25 Embraer E190s. Air Canada "rouge"'s fleet of 49 aircraft comprised 20 A319s, 5 A321s, and 24 767-300s. The company also has capacity purchase agreements with regional airlines Jazz, Sky Regional, Air Georgian and Exploits Valley Air Services (EVAS) to operate traffic feed flights on behalf of Air Canada (ACN). The 156-aircraft Air Canada Express fleet comprises 45 Bombardier regional jets, 86 Dash 8 turboprops and 25 E175s. Air Georgian and (EVAS) operate a total of 15 18-passenger Beech 1900s on behalf of Air Canada (ACN).
(ACN) plans to take delivery of the remaining 5 787-9s on order by the summer of 2019. The remaining 57 737 MAX aircraft should be delivered by the end of 2121. Deliveries of the first of up to 75 Bombardier CSeries CS300s are scheduled to begin in late 2019 and extend to 2022, with the first 25 aircraft expected to replace the E190s in air Canada's mainline fleet. The airline estimates the CSeries CS300s will deliver a 12% lower (CASM) compared to the E190s, and said it plans to utilize the aircraft on longer range markets, serving markets "that would not be as viable with [our] larger 737 MAX or A321 aircraft."
News Item A-2: Air Canada (ACN) starts daily year-round Edmonton to Kelowna; seasonal Edmonton to Victoria; and seasonal Calgary to Comox Bombardier (BMB) Dash 8-Q400 service from July 2.
News Item A-3: "Air Canada, Air China to Conclude Partnership Talks Later this Year" by Sean Broderick (ATW) March 16.
Air Canada (ACN) is confident that joint-venture (JV) talks with Air China (BEJ) will be wrapped up this year, laying the groundwork for even closer cooperation between the 2 airlines, a top executive for (ACN) the Canadian flag carrier said.
News Item A-4: Air Canada (ACN) appointed Jon Turner as VP Maintenance.
March 2018: "(ATW)'s Eco-Airline of the Year: Air Canada" ATWOnline
March 26, 2018.
Sustainability is not a sideline activity for Air Canada (ACN); it is central to the company’s decision-making and business processes. Such a determined effort to integrate sustainability and eco ethics into a company’s everyday operations requires strong and clear leadership that prioritizes environmental performance. (ACN) President & (CEO) Calin Rovinescu and his environment team provide that leadership.
April 2018: News Item A-1: Air Canada (ACN) reported a 1st-quarter net loss of -C$170 million/-$132 million, widened from -C$13 million loss in the year-ago quarter. (ACN) posted a loss before income taxes of C$184 million, which included foreign exchange losses of -C$112 million. This compared to a loss before income taxes of -C$13 million, which included gains on foreign exchange of C$70 million, in the 2017 1st quarter. However, Air Canada (ACN) delivered (1Q) record revenues of C$4.1 billion.
News Item A-2: Air Canada (ACN) and (LCC) WestJet (WJI) face the biggest threats from each other rather than planned ultra (LCC) operators eyeing shares of a market dominated by the 2 carriers, "Fitch Ratings" said. “Although it is too early to predict the magnitude of any impact that (ULCC)s may have on [Air Canada], Fitch is not overly concerned at this time,” the ratings agency said in recent ratings-outlook commentary.
News Item A-3: "Air Canada Rolls Out Enhanced Premium Service on International Flights" by Mark Nensel (email@example.com), April 20, 2018.
Air Canada (ACN) unveiled its new “Signature Service” premium travel brand this week for international flights and plans to introduce the service upgrade on certain transcontinental flights within North America in June.
Aimed at business (C) class travelers, the enhanced service will offer what the airline describes as a “seamless airport experience,” with dedicated check-in counters, expedited security clearance, lounge access, exclusive boarding lanes, and priority baggage handling, among other amenities.
(ACN)’s "Signature Class cabin" is the re-branding and upgrading of both (ACN)’s international business (C) class and business (C) class transcontinental offerings. The product launched April 17 on international flights to/from Africa, Asia, Australia, Europe and South America. For both international and transcontinental service, the enhanced premium cabin will apply to flights utilizing Air Canada (ACN)’s mainline Boeing 787, 777, 767 and Airbus A330 airplanes. The service’s “executive pod” lie-flat beds will be available only on 787 and 777 airplanes. “Classic pod” lie-flat beds will be available on the 767 and A330 airplanes.
The transcontinental service is set to launch June 1 on select transborder and domestic Canadian flights, including daily nonstop overnight routes between Toronto and Los Angeles, San Francisco and Vancouver. The service will also be deployed on routes between Vancouver and New York/Newark and Montreal, as well as routes between Calgary, Edmonton and Toronto.
“We know our premium customers traveling on longer flight itineraries place a high value on convenience and comfort when in airports or onboard an aircraft,” Air Canada President of Passenger Airlines Benjamin Smith said. With the new service, “they will enjoy added amenities throughout their journey, from curbside-to-curbside and at all points in between,” Smith said.
Later this year, full-fare premium cabin customers originating international travel at Toronto-Pierson International Airport (or connecting from a domestic flight with onward international travel) will have access to a special valet service that will deliver the customer, via a fleet of dedicated BMW sedans, “over the tarmac to connect, making connecting at Toronto-Pierson truly exclusive and seamless,” (ACN) said.
In 2017, (ACN)’s business (C) class revenue increased +$334 million, up +13.4% over 2016. Traffic and yield growth in the premium sector increased +9.8% and +3.3%, respectively. In its 2017 annual report, (ACN) emphasized its ambitions to increasingly develop Toronto Pierson, Vancouver and Montreal as transborder, trans-Asian and transatlantic hubs.
May 2018: Air Canada (ACN) has commenced 2 additional Canada to USA cross border city pairs in the last 7 days, both daily services and both launched on May 1. The 1,868 km route from Edmonton (YEG) to San Francisco (SFO) will be operated by (ACN)’s CRJ900 equipment, while the 1,355 km airport pair from Toronto Pearson (YYZ) to Omaha (OMA) will be flown by (ACN)’s CRJ-200 fleet.
2 787-8 (61219, C-FSK2; 61221 C-FSLU), 2 787-9 (38358, C-FVLZ; 38359, C-FVLZ) for Air Canada (ACN) and A319-112 (1577, C-GITR), for Air Canada rouge deliveries.
June 2018: News Item A-1: Air Canada (ACN) introduced Shannon (SNN) to its network on June 1, adding a 4x-weekly service to the West Ireland airport from Toronto Pearson (YYZ).
“This new (ACN) Toronto service reflects the growing tourism and business links between this half of the island and, not least thanks to the fact that Toronto is a hub airport, Canada. It amounts to a significant tourism opportunity for this region, with a strong demand in Canada for the unique offering of the Wild Atlantic Way, in particular,” commented Andrew Murphy, Managing Director of Shannon Airport about the arrival of (ACN). (ACN) will operate the 5,116 km sector using its fleet of 737 MAX 8s, with no other carrier presently linking the 2 airports.
Along with this new service, the Star Alliance (SAL) member has also inaugurated flights to Dublin (DUB) and Tokyo Narita (NRT) from Montreal (YUL) this 1st week of the month. Flights on the 10,351 km route to Tokyo launched on June 1, with (ACN) planning to serve the sector daily on its 787-8s. Services to the capital of Ireland commenced the following day, with (ACN), like its Toronto to Shannon route, scheduled to offer 4x-weekly flights on the 4,767 km city pair using its 737 MAX 8s. Neither of the routes launched from Montreal will face direct competition. (ACN), the Canadian flag carrier already serves Dublin on its mainline product from Toronto Pearson, while Tokyo Narita is served from Calgary and Vancouver, while (ACN) also flies to Tokyo Haneda from its Toronto hub.
News Item A-2: Air Canada Rouge launched its latest transatlantic route from Toronto Pearson (YYZ) on June 2, a 7,070 km sector to Zagreb (ZAG), the capital of Croatia.
“We are satisfied with advanced bookings for our new Zagreb service. This is why we have allocated 4x-weekly frequencies to this route, which is primarily targeted at leisure travellers,” commented Carolyn Hadrovic, Corporate Secretary, (ACN) about the airline’s latest European link.
As stated, (ACN) will offer 4x-weekly flights between Toronto and Zagreb, with (ACN) utilizing its fleet of 767-300s on the sector. Direct competition comes from fellow Canadian lesiure operator Air Transat (AIJ), with (AIJ) offering a 2x-weekly summer seasonal service using its mixed fleet of A330s. With this launch, it brings to 11 the number of transatlantic routes flown by Air Canada Rouge from Toronto Pearson, with Porto and Bucharest to become the 12th and 13th connections when they are launched on June 8 and 9, respectively.
August 2018: "Air Canada Prepares Rouge Subsidiary for (ULCC) Competition" by Sean Broderick (firstname.lastname@example.org), August 9, 2018.
As the Canadian (ULCC) market heats up, Air Canada (ACN) said it is prepared to leverage the significant flexibility of its rouge subsidiary to ward off competition, from adding flights in major domestic markets to re-configuring aircraft to match rivals’ all-economy offerings.
“We have been preparing to ensure that we have all the tools necessary to offset [low-cost competition] and ensure that we are not negatively impacted,” Air Canada Passenger Airlines President Ben Smith said.
Set up 5 years ago as a leisure-destination operation, rouge’s network is heavily transborder and international, with only a handful of year-round and seasonal routes within Canada. None of them link any of the country's 6 largest metropolitan areas (Toronto, Montreal, Vancouver, Calgary, Ottawa and Edmonton) part of rouge’s strategy to preserve mainline margins.
Calgary-based WestJet (WJI) and its (ULCC) subsidiary, Swoop are following a similar network strategy, but unlike rouge’s 2-class aircraft, Swoop operates 189Y-seat all-economy Boeing 737-800s.
Fast-growing (ULCC) Flair Airlines (FLV) is taking the strategy a step further, operating single-class, 158Y-seat 737-400s on popular domestic routes such as Toronto to Calgary and Vancouver to Calgary. ( ), the Edmonton-based carrier’s recent announcement to move its Hamilton services to Toronto will make it even more prominent, and it plans to follow rouge and Swoop into transborder services.
While Air Canada (ACN) set up rouge as a hybrid low-cost leisure carrier, (ACN) has flexibility to transform its subsidiary to meet market needs, thanks in part to a 2017 amendment to its pilot (FC) agreement. The deal lifted Rouge's fleet-size cap of 50 to 25 wide bodies and 25 narrow bodies (by permitting more narrow bodies based on (ACN)’s mainline operation and permits rouge airplanes to replace regional feeder flying.
(ACN) is already taking advantage of the narrow body cap’s removal. Its 53-airplane fleet includes 22 Airbus A319s and 6 A321s, and it plans to add 3 A320s next year. It also is evaluating its rouge deployment strategy in light of shifting market dynamics.
“We have not deployed one of our options, which is rouge on any of the major markets. We can do that,” Smith said. “We can also modify the rouge model. We can densify the rouge airplanes to bring down the (CASM). So, a lot of flexibility.”
Usage of the A320s will be determined by the best opportunities. While the strategy could change, Smith said 3 options are being considered: adding domestic capacity, flying attractive “southern” routes to Florida, Mexico, and the Caribbean, or replacing regional-feeder flying. “We’re quite pleased with the position we’re in,” he said.
October 2018: Austrian Airlines (AUL) and Air Canada (ACN) have both announced 1 new route which will be operated as a code share between the 2 airlines. “We are pleased to launch new non-stop flights from Toronto to Vienna on board our state-of-the-art Boeing 787 Dreamliner, further expanding (ACN)’s reach in Europe,” said Lucie Guillemette, Executive VP & Chief Commercial Officer (CCO) at (ACN).
On the other side of the Atlantic, (AUL) (CCO) Andreas Otto announced, “We succeeded in attracting a strong partner in (ACN) to Vienna. In this way, we can feature an additional destination in our Canadian offering adding Montreal and also strengthen our continental transfer traffic at the same time.”
(ACN) will begin year-round non-stop service between Toronto and Vienna on April 29 2019 on board a Boeing 787-9 Dreamliner. (ACN) is taking over (AUL)’s existing flights between Toronto and Vienna. The route will be bookable on (AUL)’s website. These flights will operate daily in the summer and 5x-weekly during the winter season.
Accordingly, (ACN), which is Canada’s largest airline, will operate the same number of flights on the Vienna TO Toronto route and feature departure and arrival times comparable to (AUL) up until now.
In addition to (ACN)’s service, Austrian Airlines (AUL) will begin new year-round non-stop service between Toronto and Vienna on April 29 2019 on board a Boeing 767-300ER. These flights will operate daily in the summer and winter season.
March 2019: Air Canada (ACN) has pulled the Boeing 737 MAX from its schedule until at least July 1, and has reshuffled its schedule and airplane assignments to accommodate the capacity reductions. “Because the timeline for the return to service of the 737 MAX is unknown, for planning purposes and to provide customers certainty for booking and travel, (ACN) intends to remove 737 MAX flying from its schedule until at least July 1, 2019.”
Click below for photos:
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ACN-737 MAX 8-737 MAX 9-2014-04
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ACN-767-300 - MAHO BEACH ST MAARTEN
ACN-767-300ER - 2013-10
ACN-767-333ER rouge -2014-03
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ACN-767-33AER 901-33424 C-GHPN-2016-11.jpg
ACN-777-233LR - 2014-05
ACN-777-233LR - 2014-11
ACN-777-300ER - 2014-05
ACN-777-333ER - 2009-07
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ACN-787 C-FGDZ 2017-01.jpg
ACN-787-8 - 2013-08
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ACN-A319 - 2014-04
ACN-A321-211 - 2001-12
ACN-A330-343X - 2008-03 SAL
ACN-CRJ JAZZ OPS
ACN-CRJ700 - 2012-11
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0 727-233 (JT8D) (1578-22035, C-GAAW), 6 TO (FED).
0 727-200F (JT8D HK) (EXM) WET-LEASED 2004-06. FREIGHTER.
0 737-2T7 (JT8D-17 HK) (856-22762, /82 C-FCPN), (WZP) OPERATIONS 2003-02. TO (AES). 117Y.
0 737-275 (JT8D-9A HK) (391-20958, /75 C-GBPW; 395-20959, /75 C-GCPW; 425-21115, /75 C-GEPW), EX-(PWA)/(GUI), 21294 LEASED TO (BRS). 21115 WFU 2002-01. 20958; 20959; PARTED OUT 2002-01. 22807 WFU 2002-06. 21639 SOLD TO THE (FAA) 2002-11. 21819; 22873; 22874; WFU AT MOJAVE 2003-01. 21712 DONATED TO ALBERTA AVIATION MUSEUM 2005-06. 12C, 88Y.
0 737-200 (JT8D-17 HK), EX-(CDI). 20922 PARTED OUT 2002-01. 21294 ST (BRS) 2002-07. 8 STORED. 737-217's (784-22260, C-GCPV), 52C; (786-22341, C-GCPX), 60C; (861-22658, C-GCPZ), 48C; & (850-22761, C-FCPM), 52C; FOR "AC JETZ" OPERATIONS. ALL 18 RETIRED BY END OF 2004. 12C, 88Y.
0 737-2T5 (JT8D HK) (641-22024, C-FHCP).
0 737-217 (JT8D HK) (581-21717, C-GCPN; 584-21718, C-GCPO; 666-22255, C-GCPP; 911-22728, C-GJCP; 965-22864, C-GMCP), OPERATIONS FOR (WZP) 9/02. (756-22257, C-GCPS; 22874; 22659, C-GFCP) WET-LEASED TO (WZP) 2003-02. ALL RETIRED BY END OF 2004. 22658; 22865; RETURNED TO (ARK) 2004-10. 22255; SOLD TO (TFL) 2005-12.
0 737-217 (771-22259, /02 C-GCPU; 560-21716, /03 C-GCPM; 861-22658, C-GCPZ; 960-22865, /03 C-GQCP), (WZP) OPERATIONS. ALL 4 RETIRED BY END OF 2004. 21716 TO (AES).
109/18/30 ORDERS 737 MAX, INCLUDING:
18 +15 ORDERS 737 MAX 8 (61217, C-FSJJ, 2018-04; 61218, C-FSJH, 2018-04; 61220, C-FSNU, 2018-06; 61222, C-FSNQ, 2018-06; 61223, C-FSOI, 2018-06; 61224, C-FSOC,), EX-(N1786B) .
27 +1 ORDER 737 MAX 9.
0 747-233B (JT9D-7J) (250-20977, /74 C-GAGA; 355-21627, /78 C-GAGB), FOR SALE. ALL STORED. 20977 SOLD TO (KAC) 2003-03. 39C, 377Y.
0 747-238B (JT9D-7J) (314-21354, /77 C-GAGC), EX-(QAN), FOR SALE, STORED. 39C, 241Y/PLTS.
0 747-4F6 (CF6-80C2B1F) (1038-27827, /94 C-FGHZ "RHYS T EATON"), EX-(CDI), RETURNED TO (GEF) 2003-11. 42C, 383Y.
0 747-433C (PW4056) (840-24998, /91 C-GAGL; 862-25074, /91 C-GAGM; 868-25075, /91 C-GAGN), (GEF) LEASED, ALL 3 RETIRE BY 2004-10. 25074 WFU 2004-09. 24998; 25074; RETURNED 2004-12. 24998; 25075 LEASED BY (GUG) TO (CKK). 63C, 199Y/PALLETS.
0 747-475 (CF6-80C2B1F) (823-24883, /90 C-GMWW; 912-25422), EX-(CDI), RETURNED TO (PSS) 2002-12, LEASED TO (ARG) 2004-02. 24895 RETURNED 2003-07. 24883 RETIRES 2004-10. LEASED TO (ARG) 2005-05. 42C, 379Y.
0 747-400F, (TLS) WET-LEASED 2003-03. RETURNED. FREIGHTER.
1 757-2G5 (26278, C-GJZD), (JMA) LEASED 2011-11 FOR JAZZ AIR OPERATIONS.
0 757-25F (30757, C-GJZK), THOMAS COOK (JMA) WET-LEASED 2011-10 FOR JAZZ AIR OPERATIONS. RETURNED.
2 757-25F (28718, C-GJZX; 30758, C-GJZH), THOMAS COOK (JMA) WET-LEASED 2011-11 FOR JAZZ AIR OPERATIONS. RETURNED.
1 757-28A (28203, C-GJZB), THOMAS COOK (JMA) WET-LEASED 2011-11 FOR JAZZ AIR OPERATIONS.
0 767-233 (JT9D-7R4D) (250-24323, /88 C-FBEF). 24143 WFU 2001-11; 2 2001-12. 22521 WFU 2001-12. 22523 WFU 2002-02. 22524; 22527; 24325 WFU 2002-08, STORED MOJAVE. 22522 WFU AT MOJAVE 2003-02. 22528 WFU 2003-03. (92-22526) WFU AT MOJAVE 2003-08. 22525; RETURNED 2003-09. 22519 WFU AT MOJAVE 2004-04. 1 RETIRED 2004-07. 22526 RETURNED 2004-08. 22521 RETIRED & USED AS FIRE TRAINER AT MONTREAL 2004-09. 22528 SCRAPPED AT MOJAVE 2004-09. 22526 SOLD TO (TEE) TO (IRQ). 22518; WFU AT MARANA 2006-07. 22520; WFU AT MARANA 2008-01. 22517; SCRAPPED 2009-02. 25C, 152Y.
0 767-209ER (JT9D-7R4D) (60-22682, /83 C-FUCL; 18-22681, /82 C-FVNM), (ETOPS) EQUIPPED. 22682 RETURNED 2006-10. 36C, 162Y.
0 767-275 (JT9D-7R4D) (36-22683, /82 C-GPWA; 52-22684, /83 C-GPWB), 36C, 162Y.
1 767-3Q8 (29386, C-FJZK), AIR CANADA ROUGE OPERATIONS 2015-06.
2 767-333 (30851, C-GHLU; 30852, C-GHLV) AIR CANADA ROUGE OPERATIONS 2015-06.
0 767-3S1ER, EX-(CDI) (384-25221; RETURNED AIRCRAFT LEASING 2003-04).
3 767-3YOER, EX-(CDI). (450-26200) RETURNED (GEF) 2003-11. 24952; RETURNED (GEF), LEASED TO (LAJ) 2007-04.
1 767-3YOER (PW4060) (380-24948, /91 C-GHML), EX-(TBL), (GUI) 34 MONTH LEASED 2000-12, STORED AT TORONTO 2001-10. 26200 RETURNED 2003-11. 36C, 184Y.
2 767-3YOER (PW4060) (354-24999, /91 C-GHPD; 386-25000, /91 C-GHPA), EX-(SPP), (GEF) LEASED 2002-06. 35C, 161Y.
2 767-3YOER (CF6-80C2B4F) (487-26206, /93 C-GHPF; 503-26207, N227MT), EX-(KEN), (GEF) LEASED 2005-06. 25C, 196Y.
12 767-300, EX-(CDI). 26389 RETURNED (TCI) 2003-05.
2 767-33AER (PW4060) (33423, C-GHPE) FOR ROUGE OPERATIONS 2013-07. 24C "PREMIUM," 28PY "ROUGE PLUS," 230Y "ECONOMY."
6 +5 OPTS 767-333ER (PW4060) (508-25583, /93 C-FMWP) (832-30846, /01 C-GHLQ; C-FMXC ROUGE OPERATIONS - SEE PHOTO; 835-30850, /01 C-GHLT; 836-30851, /01 C-GHLU), (GEF) 13 YEAR LEASED, 35C, 176Y.
2 767-333ER (PW4060) (597-25585, C-FMWU - - SEE PHOTO - - "ACN-767-333ER-2014-03; 30846, C-GHLQ), EX-(CDI), IN AIR CANADA ROUGE COLORS, RE-DELIVERED 2014-03. 30846; (GECAS) (GEF) LEASED 2015-02. WITH WINGLETS.
0 767-36N (836-30851, C-GHLU), WFU AT ROSWELL 2009-11.
1 767-375ER (25121, C-GSCA) FOR AIR CANADA ROUGE 2017-05.
3 767-375ER (30108, C-GEOU, 2017-03; 30112, C-GEOQ, 2017-03) EX-(CDI), (GECAS) (GEF) LEASED TO AIR CANADA ROUGE 2017-03.
1 767-375ER (249-24087, C-GHOZ), EX-(VAR), (TCI) LEASED 2005-10.
2 767-38EER, EX-(CDI).
14/16 ORDERS 777-200LR/-300ER (GE90-115):
2 ORDERS 777-200F (GE90-110B1), FREIGHTER:
4 777-233LR (GE90-115) (651-35243, C-FIUF, 2007-08; 689-35245, C-FIVK, 2008-01; 695-35246, C-FNND, 2008-02; 699-35247, C-FNNH, 2008-02). 42C, 228Y.
1 777-233LR (GE90-115B) (638-35298, /07 C-FITW - - SEE PHOTO - "ACN-777-233LR - 2014-11"), (ILF) LEASED. 42C, 228Y.
17 +4 ORDERS 777-333ER (GE90-115B) (620-35256, /07 C-FITL; 626-35254, /07 C-FITU; 649-35242, /07 C-FIUR; 702-35248, /08 C-FIUV; 712-35249, /08 C-FIUW; 717-35351, /08 C-FIVM; 726-35250, /08 C-FRAM; 763-35241, /09 C-FIVR; 42218, C-FIVW, 2013-06; 42219, C-FIVX, 2013-08; 43249, C-FNNU, 2013-12). 42C, 307Y.
1 777-333ER (GE90-115B) (797-35784, /09 C-FIVS - - SEE PHOTO - - "ACN-777-333ER-2009-07"), (ILF) 10 YEAR LEASED. 42C, 307Y.
1 777-300ER, (SIL) 12 YEAR LEASED. 42C, 307Y.
3 +34/23 ORDERS 787-8/787-9 DREAMLINER:
10 +5 ORDERS 787-8 DREAMLINER (GEnx) (597-25585, /14 C-FMWU - - SEE ATTACHED - - "ACN-787-DELAY-2008-05" & "ACN-787-8-2014-02"; 61219, C-FSK2, 2018-05; 61221 C-FSLU, 2018-05; C-GHPV; C-GHPX, 2018-09; 35263, C-GHQQ, 2015-01; 20C, 21PY, 210Y.
21 +1 ORDER 787-9 (GEnx-1B) DREAMINER (323-35265, /15 C-FNOE, 2015-07; 405-327173, C-FGDZ, 2017-04; 37175, C-FRSA, 2017-01; 37176, C-FRSI, 2017-02; 37178, C-FRSR, 2017-05; 574-37179, C-FRTW; 37181, C-FRSE, 2017-01; 37184, C-FRTG, 2017-05; C-FRTU; 38358, C-FVLZ, 2018-05; 38359, C-FVLZ, 2018-05; 659-38360, C-FVLU, 2018-09). 298 SEATS IN 3-CLASS LAYOUT: 30C, 21PY, 247Y,
0 DC-9-32 (JT8D-7B HK), 17 WFU 2001-09, STORED, 16C, 70Y.
1 MD-11F, (GMN) WET-LEASED 2004-11. FREIGHTER.
2 MD-11F (PW4460) (516-48523, N381WA), EX-(KAL), (WLD) WET-LEASED UNTIL 2007-08. FREIGHTER.
0 L-1011-193 (RB211-22B) (1025, C-FTND), 3 STORED.
2 A319-112 (CFM56-5B6/P) (1577, C-GITR, 2018-06; 1673, C-GSJB, 2013-07) FOR ROUGE OPERATIONS. 24PY "ROUGE PLUS," 118Y "ECONOMY."
5 A319-112 (CFM56-5B6/P) (1562, /01 C-GITP*; 1630, C-FBLJ; 1668, C-GJTC, 2006-04; 1673, C-GSJB; 1718, C-GJVS, 2006-04; 1742, C-GJVY; 1963, /03 C-FWTF' 1805, C-GKNW), (GEH) 13 YEAR LEASED, (1742 RETURNED (ILF) 2003-11. 1718; RETURNED 2006-03. 1886; RETURNED. 1630; & 1673; RETURNED 2007-03. 1742; RETURNED 2007-04. 1853; & 1963; RETURNED 2007-11. 1756; 1765; SOLD TO (TAP) 2008-04. 1853; RETURNED FROM (SKS) TO (SDM) 2008-08. 1673; & 1742; RETURNED FROM (CMA) 2010-08. 1562 & 1673; TO ROUGE OPERATIONS. 1562 LEASED FROM AERCAP (DEA) 2018-05. 16C (2x2), 96Y (3x3).
34 A319-114 (CFM56-5A5) (546, /95 C-GBIP; 649, C-FYJD, 2008-01; 650*, C-FYJE; 688*, C-FYJP; 845, /98 C-GBIN), 639; RETURNED (GEF) 2007-12. 649; SOLD TO (SKS) 2008-01. *DELIVERED TO AIR CANADA ROUGE 2013-11. 16C, 96Y.
26 +3 OPTIONS A320-211 (CFM56-5A1) (059, /90 C-FDQQ; C-FDSN - SEE PHOTO; 333, /92 C-FKAJ; 342, C-FMJK, 2007-08; C-FTJP - - ACCDT 2015-03 AT HALIFAX, CANADA)(2025), 283 RETURNED (GEF) 2003-11. 305 RETURNED 2005-12. 279 RETURNED (ILF) 2006-07. 426; RETURNED, LEASED TO (APZ) 2007-07. 311; RETURNED, LEASED TO (LAJ) 2007-05. 342; TO (APZ); & 350; TO (EHD); BOTH 2007-08; 255; & 324; WFU AT ROSWELL 2009-11. 20C, 120Y.
13 A320-211 (CFM56-5A1) (159, /91 C-FFWN, EX-(CDI). 175; 210; 231; 232; OPERATIONS FOR (ACN) JETZ 2003-10. 233 REGISTRATION CANCELED 2017-02.
0 A320-212 (427), EX-(CDI), RETURNED TO (ILF) 2002-11.
2 A320-214 (CFM56-5B4/P) (1864, /02 C-GKOD; 1874, /02 C-GKOE), (ILF) LEASED. 20C, 120Y.
3 A320-214 (CFM56-5B4/P) (1940, /03 C-FZUB; 2018, /03 C-FXCD; 2145, /03 C-FXQS), (GEF) LEASED. 20C, 120Y.
1 A320-214 (CFM56-5B4/P) (1975, C-FGKH), EX-(OO-TCI), MACQUARIE LEASED 2015-02. 20C, 120Y.
14 A321-211 (CFM56-5B3/P) (1602, /01 C-GITU; 1611, /01 C-GITY; 1623, /01 C-GIUB; 1632, /01 C-GIUE; 1638, /01 C-GIUF; 1783, /02 C-GJWN 2002-07; 1811, /02 C-GJW0; 5038, C-FYXF, 2018-06). 24C, 142Y.
0 A321-211 (CFM56-5B3/P) (674, /97 C-GKOH; 675, /97 C-GKOI; 684, /97 C-GKOJ), EX-(AFA), (GAX) LEASED 2002-08. 674; & 675 RETURNED 2005-06. 674; 684; TO (CSA). 24C, 142Y.
2 A321-211 (3401, C-FGKZ, 2015-06; 3884, C-FGKP, 2015-05), (DEA) LEASED.
8 +2 ORDERS A330-343X (TRENT 772B-60) (277, /99 C-GFAF; 279, /99 C-GFAH; 284, /99 C-GFAJ; 344, /00 C-GFUR; 400, /01 C-GHKR; 408, /01 C-GHKW; 412,# /01 C-GHKX 2017-09; 419,* /01 C-GHLM), *STAR (STR) ALLIANCE LIVERY. #WINGLETS. 44C, 228Y.
0 A340-312 (048, C-FDRO), EX-(JAM), (ILF) LEASED 2005-06; RETURNED 2007-09. LEASED TO (ARG).
3 A340-313X (CFM56-5C4) (088, /95 C-FTNQ; 170, /97 C-FYLD; 175, C-FYLG; 179, C-FYLU; 273, C-GDVW) (093 RETURNED (ILF) 2002-06), 088; TO (IBE). (150), RETURNED, LEASED TO (CSR) 2007-05. (167, C-FYLC), SOLD TO (LAN) 2007-07. 170; 273; 278; TO (LAN). 179; WFU 2008-01 & LEASED TO (CSR). 088; RETURNED 2008-02 TO (ILF), LEASED TO AUDELI AIR SERVICES AS (EC-KOU). 175; LEASED TO (CSR) 2008-04. 273; 278; TO (ASX) 2009-02. 44C, 220Y.
1 +2 ORDERS A340-343X (CFM56-5C4) (932, C-GFAH; 933, C-GFAJ), 44C, 220Y.
0 A340-541 (TRENT 553) (445, /02 C-GKOL, 2004-06; 464 /02 C-GKOM, 2004-07), SOLD TO (TPR) 2007-08. 308Y.
0 ORDERS A340-642 (592, /04 C-GKOO; 596, /04 C-GKOU) +/10 A340-500/-600. (482; 495; 592; 596; NTU), DEFERRED. ALL 4 CANCELED. 360Y.
25 +15/8 ORDERS CANADAIR CRJ CL-65 (CF34-3A1), 50Y:
26 +4 OPTIONS BOMBARDIER CRJ-200 (7500, C-GJZA, 2006-03; 7978, C-GJZZ, 2004-10; 7985, C-FFJA, 2004-11; 7963, C-GQJA, 2004-11; 7987, C-FIJA, 2004-12), AIR CANADA EXPRESS & AIR CANADA JAZZ AVIATION OPERATIONS. 50Y.
16 +14/30 ORDERS BOMBARDIER CRJ705, 75 PAX, 2 CLASS, AIR CANADA EXPRESS & AIR CANADA JAZZ AVIATION OPERATIONS.
4 BOMBARDIER CRJ900er (15048, C-FUJZ; 15421, C-FJZL; 15423, C-GJZS; 15424, C-GJZV), IN STAR (SAL) ALLIANCE COLORS. AIR CANADA EXPRESS & AIR CANADA JAZZ OPS.
45/30 ORDERS BOMBARDIER CS300 (PW1500G):
34 DHC-8-100, FOR JAZZ AVIATION (AIR CANADA EXPRESS) OPERATIONS, 27Y.
28 DHC-8-300, FOR JAZZ AVIATION (AIR CANADA EXPRESS) OPERATIONS.
2 DHC-8 402 (4174, C-FSRY; 4533, C-GJZD), 2016-11 & 2017-02 FOR JAZZ AVIATION (AIR CANADA EXPRESS).
21 +4 OPTIONS BOMBARDIER DASH 8-Q402NG (4165, C-FSRJ; 4181, C-GJZC, 2016-09; 4388, C-GGNW; 4394, C-GGND; 4397, C-GGMU), FOR JAZZ AVIATION (AIR CANADA EXPRESS) OPS. 78Y:
13/10 BOMBARDIER DASH 8-Q400 FOR JAZZ AVIATION (AIR CANADA EXPRESS), 78Y, REPLACES DHC-8-100S & CRJ200S OVER NEXT 11 YEARS, 78Y:
25 +1/8 ORDER EMBRAER E175 (00085, C-FEIX; 00086, /13 C-FEJB; 00089, /13 C-FEJC, 2005-10; 00090, C-FEJD; 00091, /13 C-FEJF, 2005-08; 00095, C-FEJL; 00096, C-FEJP, 2005-09; 00097, C-FEJY, 2005-09; 00101, C-FEKD, 2005-10; 00102, C-FEKH, 2005-10; 00103, C-FEKI, 2005-11; 00109, C-FEKJ, 2005-11; 00110, C-FEKS, 2005-12; 00116, C-FFYG), 73Y.
45/45 ORDERS EMBRAER E190 IGW (00010, C-GWEN, 2005-12; 00013, C-FFYJ, 2005-12; 00015, C-FFYM, 2005-12; 00018, C-FFYT, 2006-01; 00019, C-FGMF, 2006-01; 00022, C-FGLW, 2006-03; 00024, C-FGLX, 2006-03; 00028, C-FGLY, 2006-05; 00031, C-FHIQ, 2006-06; 00036, C-FHIS, 2006-06; 00037, C-FHIU, 2006-06; 00041, C-FHJJ, 2006-08; 00043, C-FHJT, 2006-08; 00044, C-FHJU, 2006-09; 0046, C-FHKA, 2006-09; 0048, C-FHKE, 2006-11; 00052, C-FHKI, 2006-11; 00055, C-FHKP, 2006-12; 00064, C-FHKS, 2007-01; 00070, C-FHNL, 2007-03; 00071, C-FHNP, 2007-03; 00075, C-FHNV, 2007-04; 00077, C-FHNW, 2007-05; 00083, C-FHNX, 2007-06; 00092, C-FLWE, 2007-07; 00094, C-FLWH, 2007-07; 00096, C-FLWK, 2007-08; 00097, C-FHON, 2007-08; 0101, C-FHOS, 2007-08; 0105, C-FHOY, 2007-09; 0108, C-FMYV, 2007-09; 0111, C-FMZB, 2007-09; 0115, C-FMZD, 2007-10; 0116, C-FMZR, 2007-10; 0118, C-FMZU, 2007-11; 0124, C-FMZW, 2007-11; 0132, C-FNAI, 2007-11; 0134, C-FNAJ, 2007-12; 0136, C-FNAN, 2007-12; 0142, C-FNAP, 2007-12; 0146, C-FNAQ, 2008-01; 0149, C-FNAW, 2008-02; 0151, C-FNAX, 2008-02), 93 PAX, 2 CLASS.
Click below for photos:
ACN-1-CALIN ROVINESCU - 2012-11
ACN-4-Carolyn Hadrovic YYV to ZAG 2018-06.jpg
ACN-7-Kevin OConnor - L - 2018-06.jpg
ACN-7-Lisa Pierce - 2018-05.jpg
DAVID RICHARDSON, CHAIRMAN (ACN) (2008-01).
RICHARD MCCOY, CHAIRMAN JAZZ AIR (2008-01).
CALIN ROVINESCU, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO) (ACN) (2009-04).
BENJAMIN SMITH, PRESIDENT PASSENGER AIRLINES (2014-08).
Ben was previously Executive VP & Chief Commercial Officer (CCO). In addition to his current responsibilities, Ben has cost, as well as revenue oversight for passenger airline activities.
MICHAEL FRIISDAHL, PRESIDENT & (CEO) AIR CANADA ROUGE.
CRAIG LANDRY, PRESIDENT LEISURE GROUP (INCLUDING (ACN) ROUGE) (2015-12).
CHAHRAM BOLOURI, PRESIDENT & (CEO), (ACN) TECHNICAL SERVICES (ACTS) (2006-01).
JOSEPH RANDELL, PRESIDENT & (CEO), JAZZ AIR & CHORUS AVIATION.
COLIN COPP, PRESIDENT JAZZ AIR.
Colin was previously Chief Administration Officer and Senior VP Operations Support with Jazz Air.
LISE FOURNEL, PRESIDENT & (CEO) DESTINA, CHIEF INFORMATION OFFICER (CIO) & VP INFORMATION TECHNOLOGY (IT) (2003-07).
KLAUS GOERSCH, EXECUTIVE VP & CHIEF OPERATING OFFICER (COO), EX-AIRTRAN (CQT) (2012-09).
MICHAEL ROUSSEAU, EXECUTIVE VP & CHIEF FINANCIAL OFFICER (CFO) (2007-10).
MS JOLENE MAHODY, (COO) JAZZ AIR (2009-09).
BRAD MOORE, EXECUTIVE VP CUSTOMER SERVICES.
CAPTAIN ROBERT GIGUERE, EXECUTIVE VP FLIGHT OPERATIONS (YULZOAC) (email@example.com).
PAUL BROTTO, EXECUTIVE VP PLANNING & COST MANAGEMENT.
MS LUCIE GUILLEMETTE, EXECUTIVE VP & CHIEF COMMERCIAL OFFICER (CCO).
MS CAROLYN HADROVIC, CORPORATE SECRETARY.
SYDNEY ISAACS, SENIOR VP CORPORATE DEVELOPMENT & CHIEF LEGAL OFFICER.
STEVE SMITH, EX-(WJI), SENIOR VP CUSTOMER EXPERIENCE (2004-04).
ALLAN ROWE, SENIOR VP & (CFO) JAZZ AIR (2004-08).
TERRY NORD, CHIEF TECHNICAL OFFICER (CTO).
JOHN BAKER, SENIOR VP & GENERAL COUNSEL.
GREG COTE, SENIOR VP CORPORATE FINANCE & STRATEGY.
ROB REID, SENIOR VP OPERATIONS, INCLUDING TECHNICAL SERVICES (ACTS) (2004-04).
KEVIN HOWLETT, SENIOR VP REGIONAL MARKETS (2013-11).
STEVEN RIDOLFI, VP STRATEGIC INVESTMENTS, MERGERS & ACQUISITIONS, CHORUS AVIATION (2015-10).
RON ELVIDGE, VP & (COO) (ACN) TECHNICAL SERVICES (ACTS) (YULEZAC) (firstname.lastname@example.org) (2004-06).
JON TURNER, VP MAINTENANCE (2018-02).
DAVE DIGGLE, VP COMPONENT MAINTENANCE (2001-05).
KAL REBIN, VP MAINTENANCE & ENGINEERING OF JAZZ AIR, BASED IN TORONTO (2013-10).
MS JOLENE MAHODY, VP CORPORATE STRATEGY (ACN) JAZZ (2004-07).
MS SUE WELSCHEID, VP CUSTOMER EXPERIENCE & IN-FLIGHT (2004-07).
GARRY FAILLER, VP ENGINE MAINTENANCE CENTER (2001-05).
DUNCAN BUREAU, VP GLOBAL SALES, EX-(MAS)/(WJI) (2014-06).
Duncan was a former Senior VP Global Sales & Distribution for Malaysia Airlines (MAS) and VP Sales & Distribution for WestJet (WJI).
YVES DUFRESNE, VP INTERNATIONAL, ALLIANCE & REGULATORY AFFAIRS (2004-04).
CHARLIE MCKEE, VP MARKETING (2006-04).
KEVIN O'CONNOR, VP SYSTEMS OPERATIONS CONTROL.
KAL REBIN, VP MAINTENANCE & ENGINEERING JAZZ AVIATION.
DANIEL SHURZ, VP NETWORK PLANNING (2006-08).
DAVE RAMAGE, VP OPERATIONS, (email@example.com) (YULEEAC).
RON BLUE, VP SUPPORT SERVICES & AIRWORTHINESS (YULEZAC) (firstname.lastname@example.org).
MS LISE-MARIE TURPIN, VP AIR CANADA CARGO (2008-09).
VIJAY BATHIJA, VP COMMERCIAL, AIR CANADA ROUGE.
TOM WILDE, GENERAL MANAGER AIRCRAFT CONTRACTS & SPECIFICATIONS.
JOHN TURNER, GENERAL MANAGER (ACN) MAINTENANCE & AIRCRAFT PROGRAMS (2003-07).
MICHAEL WELCH, GENERAL MANAGER TORONTO AIRPORT, EX-(CAL) (2004-05).
CAPTAIN HUGH CAMPBELL, SENIOR DIRECTOR FLIGHT OPERATIONS (YYZQVAC) (email@example.com).
GEOFF BROUGHTON, SENIOR DIRECTOR MAINTENANCE & ENGINEERING.
SAMUEL ELFASSY, SENIOR DIRECTOR CORPORATE SAFETY.
MS LOUISE MCKENVEN, SENIOR DIRECTOR MARKETING.
MS LISA PIERCE, SENIOR DIRECTOR USA SALES & MARKET DEVELOPMENT.
ANTON VIDGEN, SENIOR DIRECTOR CUSTOMER & TECHNOLOGY, AIR CANADA ROUGE.
TOM LIEPINS, DIRECTOR AIRWORTHINESS.
MS GINETTE MOREL, DIRECTOR CABIN MAINTENANCE.
BEN BESNER, DIRECTOR COMPONENT MAINTENANCE.
ROBERT PARKER, DIRECTOR ENGINEERING (YULEZAC)
ROB CLARK, DIRECTOR FLIGHT OPERATIONS.
BILL CURTIS, DIRECTOR FLIGHT SAFETY (firstname.lastname@example.org).
GEORGE ZARIKOS, DIRECTOR HEAVY MAINTENANCE (2001-09).
SERGE ST-PIERRE, DIRECTOR INFORMATION TECHNOLOGY (IT), TECHNICAL OPERATIONS.
TOM LIEPINS, DIRECTOR MAINTENANCE QUALITY (2000-09).
BRUCE MACOUBREY, DIRECTOR MATERIAL SERVICES & COMPUTERIZED MAINTENANCE.
MICHEL BARETTE, DIRECTOR POWER PLANT PRODUCTION.
PAUL WHITTY, DIRECTOR FUEL PURCHASING & SUPPLY.
MS TERESA EHMAN, DIRECTOR ENVIRONMENTAL AFFAIRS.
MAX STOLLAR, CHIEF ENGINEER.
FORD CHOWN, CHIEF ENGINEER INTERIORS (1997-08).
GRANT ZACKOWSKI, CHIEF ENGINEER 747/767.
GORDON HELM, CHIEF ENGINEER OPERATIONS ENGINEERING.
CHRIS SOWERBY, CHIEF ENGINEERING OPERATIONS (1997-11).
HUNTER LEE, CHIEF ENGINEER PROJECTS (2001-12).
SCOTT BROOKS, CHIEF ENGINEER AIRWORTHINESS (2001-12).
DENNIS DREGER, FLEET PERFORMANCE MANAGER, BOEING (TBC) & CANADAIR.
LES EDGE, MAINTENANCE CONTROL MANAGER (YYZMKAC).
TODD SEIFERLING, BOEING FLEET MANAGER, (email@example.com).
MATTHEW LEE, SENIOR MANAGER NETWORK PLANNING.
CHIN POR LEE, MANAGER LINE MAINTENANCE.
GILLES BUSSIERES, MANAGER PRODUCTION.
NEIL HACHE, MANAGER QUALITY.
YOICHI NAKANE, FLEET MANAGER ENGINEERING (737, 747, 767, DC-9) (YULEZAC), (firstname.lastname@example.org).