Air Canada 2012 Annual Report Download - page 11

2012 Management’s Discussion and Analysis
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For its inaugural 2013 season, Air Canada rougeTM is planning on introducing routes not currently operated by Air Canada, such
as Venice, Italy, and Edinburgh, Scotland. In addition, Air Canada seasonal services from Toronto and Montreal to Athens,
Greece are scheduled to be transferred to the leisure carrier. Similarly, existing Air Canada flights operated in cooperation with
Air Canada Vacations to Cuba, the Dominican Republic, Jamaica and Costa Rica are scheduled to be operated by Air Canada
rougeTM effective July 2013. Air Canada rougeTM flights to all destinations to be served in the carrier’s inaugural 2013 summer
schedule will depart Air Canada’s main hub at Toronto Pearson offering customers seamless connections with Air Canada, Air
Canada Express and its Star Alliance partner flights. Air Canada rougeTM will also operate non-stop flights to Athens from
Montreal’s Trudeau Airport, in addition to its Toronto-Athens flights. Air Canada rougeTM customers will benefit from
attractively priced through-fares from any point within Air Canada’s extensive network on a single ticket as well as baggage
checked through to final destination and Aeroplan mileage accumulation and redemption.
The Air Canada rougeTM fleet will initially be comprised of two Boeing 767-300ER aircraft to operate transatlantic flights in a
two-cabin configuration offering a selection of “rougeTM Plus” seats with additional legroom and “Premium rougeTM” seats
featuring additional seating comfort, space and enhanced meal and beverage service; and two Airbus A319 aircraft to operate
North American flights in an all-economy configuration offering a selection of “rouge PlusTM” seats with additional legroom.
Prior to the end of 2013, Air Canada plans to transfer an additional six Airbus A319 aircraft, for a total of eight Airbus A319
aircraft, from its mainline fleet to Air Canada rougeTM. Air Canada rougeTM will expand to other leisure destinations as Air
Canada starts to take delivery of new Boeing 787 Dreamliner aircraft, which is scheduled to commence in 2014, thereby
freeing up aircraft for transfer to the Air Canada rougeTM fleet. As this occurs, and subject to commercial demand, Air Canada
rougeTM may operate up to 20 Boeing 767-300ER aircraft and 30 Airbus A319 aircraft, for a total of 50 aircraft, to pursue
opportunities in markets made viable by the lower operating cost structure of Air Canada rougeTM.
Engaging with Customers with Particular Emphasis on Premium Passengers and Premium Products
Key achievements in 2012
In 2012, Air Canada received the following important industry awards which demonstrate its customers’ appreciation of the
airline’s extensive network, alliance relationships and leading products and services, as well as their recognition of the
dedication and professionalism of Air Canada’s employees in delivering its world class products and services.
 “Best In-flight Services in North America” and “Best North American Airline for International Travel” in Business Traveler’s
“Best in Business Travel” award program, for a fifth consecutive year;
 “Best Flight Experience to Canada from Anywhere in the World” by readers of Executive Travel Magazine in their annual
“Leading Edge Awards” readership survey of frequent international travelers, for a fifth consecutive year;
 “Best International Airline in North America” in a worldwide survey of more than 18 million air travelers conducted by
independent U.K. research firm, Skytrax, for their 2012 World Airline Awards, for a third consecutive year;
 “Best Airline in North America” by Global Traveler magazine, for a fourth consecutive year; and
 “Best North American Airline for Business Class Service”, “Best North American Airline for International Travel” and “Best
Flight Attendants in North America” by Premier Traveler magazine.
Air Canada was also recognized for its airport and onboard product and service improvements. The airline has become the
only international network carrier in North America to receive a Four-Star ranking according to Skytrax. The much-coveted
rating is considered an airline industry benchmark and is based on detailed, independently conducted, quality analysis by
Skytrax across more than 800 different areas of airport and onboard product and service delivery.
In addition, Air Canada was recognized as the preferred airline for more than 79% of frequent business travellers in Canada
according to the 2012 Canadian Business Travel Survey by Ipsos Reid, which confirms that Air Canada’s efforts in promoting
its premium class products and services are yielding positive results.
Increasing customer satisfaction levels and growing the airline’s premium customer base remain key elements of Air Canada’s
business strategy. Air Canada recognizes that its success is dependent on consistently delivering superior value and innovative
products, constantly striving to provide the highest levels of customer service, and continuing to evolve to anticipate the
changing needs of customers. In 2013, Air Canada will continue to focus on understanding and anticipating customer
preferences to ensure it has the appropriate products and services in place.