Air Canada

Air Canada is Canada's largest airline and flag carrier. The airline, founded in 1937, has its corporate headquarters in Montreal, Quebec. The airline provides scheduled and charter air transportation for passengers and cargo to over 240 destinations and vacation packages to over 90 destinations via Air Canada Vacations. Air Canada is the world's 12th largest airline by fleet size and its largest hub is Toronto Pearson International Airport. Air Canada's parent company is ACE Aviation Holdings. Air Canada is a founding member of Star Alliance, the largest airline alliance in the world. It was formed in 1997 and now has 18 member airlines. On January 19, 2007, the airline was voted Best Airline in North America.[1] In 2006, roughly 34 million people flew with Air Canada.

In 2007, Air Canada celebrates its 70th anniversary as an airline.

History

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

Trans-Canada Airlines (TCA) was created as a subsidiary of Canadian National Railway (CNR) on April 10, 1937. Passenger operations began on September 1, with a Lockheed 10A carrying two passengers and mail from Vancouver to Seattle. The company was headquartered in Winnipeg which was also the site of the national maintenance base. In 1949, federal policy dictated the headquarters move to Montreal. Later the maintenance base also moved east which was a significant blow to western Canada. In the 1950s Air Canada did pioneering work in the use of computer reservation systems with the development of the ReserVec system. By 1964, TCA had grown to become Canada's national airline and in 1964 Jean Chrétien submitted a private member's bill to change the name of the airline from Trans-Canada Airlines to Air Canada. This bill failed but it was resubmitted and passed, with the name change taking effect on January 1, 1965. In a late 1970s reorganisation at CNR, Air Canada became an independent Crown corporation.
[edit] Air Canada in the '80s and '90s

In 1987, Air Canada became the first airline in the world to have a fleet-wide non-smoking policy [2], and in 1989 became completely privatised. Air Canada sold the enRoute card business to Diners Club in 1992. Air Canada is a founding member of the Star Alliance, which was launched in May 1997. The airline continues participate in the alliance and code-shares with several of the alliance's members.

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

[edit] 2000 and beyond

In January 2000 Air Canada acquired Canada's second largest air carrier, Canadian Airlines, subsequently merging the latter's operations into its own. As a result Air Canada became the world's twelfth-largest commercial airline.

On April 1, 2003, Air Canada filed for bankruptcy protection, emerging from this protection on September 30, 2004, 19 months later. During bankruptcy protection, the company was subject to two competing bids from Cerberus Capital Management and Victor Li. The Cerberus bid would have saw former Prime Minister Brian Mulroney installed as chairman, being recruited by Cerberus international advisory board chair Dan Quayle. Cerberus was rejected because it had a reputation of changing existing employee pension agreements, a move strongly opposed by the CAW. Air Canada initially selected Victor Li's Trinity Time Investments, who initially asked for a board veto and the chairmanship in return for investing $650 million in the airline. Li, who holds dual citizenship from Canada and Hong Kong, later demanded changes to the pension plan (which was not in his original takeover bid), but since the unions refused to budge, the bid was withdrawn. Finally, Deutsche Bank unvailed an $850 million dollar financing package for Air Canada, if it would cut $200 million in annual cost cutting in addition to the $1.1 billion that the unions agreed on in 2003. It was accepted after last minute talks between CEO Robert Milton and CAW chief Buzz Hargrove got the union concessions needed to let the bid go through.

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