Canadian Airlines

Canadian Airlines International Ltd. was, from 1987 until 2001, Canada's second largest airline after Air Canada, carrying more than 11.9 million passengers to over 160 destinations in 17 countries on five continents at its height in 1996. Canadian Airlines served 105 destinations in Canada, more than any other airline.

Canadian Airlines was headquartered in Calgary, Alberta and had revenue of approximately $3 billion at the end of 1999. The airline and its planes were acquired by Air Canada in 2001.

History

Canadian Airlines International Ltd., which was the principal subsidiary of Canadian Airlines Corporation (formerly PWA Corporation), was the descendant of five predecessor airlines. On March 27, 1987, Canadian Pacific Airlines, Eastern Provincial Airways, Nordair and Pacific Western Airlines amalgamated to form the new airline.

PWA Corporation acquired Wardair in 1989, establishing Canadian as an important player in the global industry with the addition of new routes. Its major hubs were at Montréal-Pierre Elliott Trudeau International Airport, Toronto Pearson International Airport, Vancouver International Airport, and Calgary International Airport. Canadian Airlines streamlined its operations and went through the financial restructuring of over $700 million in debt, after the 1991 airline industry slump.

On November 1, 1996, Kevin Benson, then president and CEO, unveiled a restructuring strategy to improve the profitability of Canadian Airlines. The operational restructuring plan was supposed to be phased in over a four year period, addressing the main issues of cost control, revenue growth, capitalization and fleet renewal. It was also one of the founding members of the Oneworld airline alliances, along with American Airlines and British Airways. The plan started off well but with the Asian economic downturn 1998, air traffic decreased and Canadian was suffering on what was previously its most profitable route.

Canadian Plus was the largest frequent flyer program in Canada with more than 60 airline, hotel, car rental, and financial partners worldwide. The program had more than three million members.

In its last few years of operation, Canadian Airlines extended its international route network in Asia, with the most recent expansion of service to Malaysia and the Philippines, which gave it eight destinations in Asia. At that time Canadian Airlines had the distinction of flying to more places in Asia, more often, than any other Canadian carrier.

Canadian Airlines' core business strategy focused on building its Vancouver hub into the leading gateway between North America and Asia. It leveraged its codesharing agreement with American Airlines in order to help capture a greater share of U.S.-Asia traffic flows.

After continued poor performance, Canadian Airlines was acquired by Air Canada in 2000. Numerous other proposals for survival had been considered and rejected, including a competing bid led by American Airlines to purchase Canadian Airlines. American Airlines had already owned a 25% stake in Canadian Airlines, the maximum allowed under regulations. Then-American CEO Donald J. Carty, who had formerly headed Canadian predecessor Canadian Pacific Airlines and Air Canada, planned to acquire a controlling interest in the new Air Canada, with the purpose of moving it from the Star Alliance to Oneworld. American has since sold its shares in Air Canada, after unsuccessfully lobbying Canadian federal government to ease foreign ownership restrictions on Canadian airlines.
Canadian Airlines 737 at Ottawa International Airport
Canadian Airlines 737 at Ottawa International Airport

Historical Destinations

Further information: Canadian Airlines destinations

Livery

The most famous and well-known livery of Canadian used four colours: light grey, dark grey, navy blue, and red. The lower half of the aircraft's body was navy blue, topped with light grey and red borders. The tail was two-thirds blue, with the remaining third taken up by a light grey colour. Over the light grey were five dark grey lines, representing the five continents served by the carrier. Over these lines was a thick, bright red chevron ">". This character was a clever alternative to a true bilingual name on the fuselage (Canadian/Canadien).
Canadian Airlines logo since mid-1980s until 1999 when it was replaced by the "Proud Wings" logo
Canadian Airlines logo since mid-1980s until 1999 when it was replaced by the "Proud Wings" logo

Its last livery with a Canada Goose painted at the tail of the aircraft is known as the "Proud Wings" livery. However, it came late enough that most of the fleet still retained the existing chevron livery by the time of the merger.

Also, during the acquisition by Air Canada, part of the "Proud Wings" livery was completely replaced with a white body (with the exception of the word Canadi>n) and an Air Canada tail (with a red maple leaf against a dark green background.)