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Air Canada
Air Canada is a Canadian public company with its headquarters in Montreal, Quebec. It operates domestic air services within Canada, and international air services to and from Canada. Air Canada is a member of the Star Alliance of airlines
Canadian Airline
CAC is also a Canadian public company, and also operated domestic and international air services, mainly through a subsidiary Canadian Airlines International Ltd (Canadian Airlines). Both Air Canada and Canadian Airlines operated air services to and from the UK, overlapping on routes between London Heathrow and Toronto, Vancouver, Calgary and Ottawa. ... -Canada transborder, and international jet air transportation services, and through an indirect wholly-owned subsidiary of CAIL, Canadian Regional Airlines (1998) Ltd. ... When Air Canada’s share purchase offer for Canadian was taken up in January 2000, Canadian was losing over $2 million a day. ... It saw little prospect of CAC’s future viability and believed it was necessary to foster a merger between CAC and Air Canada
? ... redeploy redundant domestic capacity to the transborder (Canada-US) market with no significant
loss of domestic revenues
?combine virtually all of Canada’s primary international route authorities, hitherto split between
Air Canada and Canadian, into a powerful global network
? ... was incorporated, with
Air Canada owning 10% of the common shares, CAIL since the acquisition date have also been included in the Corpora-tion’s
On January 4, 2000, the Offeror took up approximately 82% of
the issued and outstanding common shares and non-voting shares of
CAC at a cost of $79. ...
Based on 2000 fuel volumes and taking into account the historic
movement of jet fuel spreads relative to WTI crude oil, a US$1 per
barrel movement in the price of crude oil would result in an approxi-mate
CDN$45 million change in 2001 fuel expense as compared to
combined fuel expense for Air Canada and Canadian Airlines in 2000,
net of fuel hedges.
In November 2000, Air Canada announced its intention to form
Air Canada Technical Services as a division of Air Canada, to compete
on a global basis as an aircraft maintenance, repair and overhaul profit
center. Air Canada Technical Services is responsible for the mainte-nance,
engineering and repair of Air Canada’s aircraft fleet and provides
maintenance services to numerous third party airlines. ...
Air Canada has invested significantly in information technology as
a means to improve customer service, lower costs and improve produc-tivity. ...
Air Canada is currently evaluating contract proposals for a long-term
information technology services agreement following the expiry of its
current agreement in July 2001, subject to Air Canada’s right to
extend, pursuant to the terms of the current agreement. The selection
of Air Canada’s information technology supplier is expected to be
made in the second quarter of 2001. ...
When airline mergers involve little network overlap, the modus operandi is relatively straightfor-ward. ... Tens of millions of dollars were saved through joint advertising, by moving
phone and data communications at Canadian to lower Air Canada rates, by streamlining travel
agent commission structures between the two airlines and by having Air Canada provide services
for Canadian which the latter had been outsourcing. Canadian had been offering volume fare
reductions of up to 40 per cent to attract customers: These discounts were reduced when accounts
were standardized at Air Canada’s corporate rates. ... Due to the limitations of their respective transborder and international networks,
Air Canada and Canadian had been handing off a great deal of traffic to alliance partners and
non-affiliated airlines at foreign hubs instead of carrying it further. By merging networks and
adding foreign destinations as nonstops from Canada, Air Canada has begun carrying that traffic
all the way to the final destination. ...
P R O J E C T: Move all customers to Air Canada tickets and cargo airwaybills. ... This was particularly important for cargo, because customers no longer
had to tender freight separately to Air Canada and Canadian terminals, but could tender it all to
Air Canada. ...
Several million lines of software code were rewritten, requiring over 100,000 person/days
of labour over a nine-month period, more than double the effort that went into making Air Canada
Y2K ready. ... to each other before the airline could offer seamless service.
Canadian’s reservations system was migrated to Air Canada’s in October. ... The first step was to intermingle workers on the
ground, so that Air Canada employees could handle Canadian’s passengers and flights, and
vice-versa. ... 5 billion debt load and aircraft rent payment obligations,
achieving savings of approximately $500 million on a present value basis
combining schedules, operating authorities, passenger and cargo terminal
operations, system control centres, computer systems, accounting, head offices
and frequent flyer programs
negotiating long term labour agreements with all but one of our unions
training thousands of Canadian employees on Air Canada systems
removing redundant domestic capacity and redeploying those aircraft to the
transborder networkadding overseas destinations, including Sydney and Shanghai
ordering 32 aircraft for either growth or fleet renewal
establishing one set of commercial policies and practices
producing standardized procedures and manuals for the merged carrier
creating a single country-wide regional airline system
converting Aeroplan and Technical Operations into profit centres to enhance their
income generating capacity
securing preferred access to Toronto airport’s new mega-terminal opening in 2003.
Approximate Word count = 4024
Approximate Pages = 16.1
(250 words per page double spaced)
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