Air Canada 2012 Annual Report Download - page 12

2012 Air Canada Annual Report
12
In 2013, Air Canada will continue to focus on better managing its premium class cabin to maximize revenues and in seeking
new opportunities to increase premium cabin revenues. Air Canada believes it maintains a revenue premium that more than
offsets the higher costs associated with service to premium passengers.
Air Canada is one of the most recognized brands in Canada, and the airline plans to continue to leverage this strength to
attract revenue, particularly on its international service. Air Canada’s extensive and expanding global network, its modern fleet,
industry-leading on-board products and services, lounges and airport facilities are among the advantages of flying Air Canada.
When surveyed, customers cite Air Canada’s frequent flyer program, “The Air Canada Top Tier Program”, as one of the key
reasons they fly Air Canada. There are currently three tiers to the 2012 program: Air Canada Super Elite, Air Canada Elite and
Air Canada Prestige. Beginning on March 1, 2013, the Air Canada Top Tier Program will have a new name – Air Canada
Altitude – including two additional status levels and more benefits than in the past. Designed to recognize and reward Air
Canada’s most frequent flyers, Air Canada Altitude offers a range of privileges, including priority travel services, upgrades to
Executive Class, and recognition across Star Alliance. Air Canada Altitude members will continue to benefit from Air Canada’s
partnership with the Aeroplan program, which provides a wide range of ways to earn and redeem valuable Aeroplan® Miles,
including flights to over 1,200 destinations worldwide.
The “Air Canada Rewards for Small Business” program is allowing the airline to broaden its access to corporate customers and
providing it with new business opportunities. Designed to bridge the gap between the average leisure traveler and occasional
business traveler, and the large corporate accounts with numerous frequent flyers, the program caters to small and medium
size businesses, allowing them to earn rewards and complimentary services, including discounts on Air Canada flights. The
program also offers businesses the use of an exclusive online tool that manages travel expenses and tracks rewards
simultaneously. Rewards can be shared among employees, in addition to the Aeroplan® Miles and Air Canada Status Miles
that employees can earn by flying Air Canada. This is one example of how Air Canada is increasing its customer reach.
In May 2012, Air Canada doubled its in-flight movie programming and significantly increased its television content. In fact, Air
Canada was among the world's best airlines for in-flight entertainment, according to a list compiled by the Smarter Travel
website. Frequent flyers also rate Air Canada’s lounges and its concierge service high on their list of reasons for choosing to fly
Air Canada and the airline plans on building on these offerings in 2013, including with the addition of Maple Leaf Lounges and
an additional concierge base in Europe.
Fostering Positive Culture Change
Air Canada believes that a healthy and dynamic corporate culture can have a significant impact on its long-term performance.
The workforce’s ability to respond and adapt to changing market conditions and customer expectations is a key ingredient to
the airline’s continued success. Acknowledging the importance of aligning its corporate culture with its strategic plans, over
the last several years, Air Canada has been seeking to foster a common sense of purpose, shared values and common goals
among employees to ensure the airline’s prosperity and growth. This important initiative is delivered in many forms, including
through executive presentations, daily communiqués, monthly letters from senior executives, quarterly conference calls, and
in many daily interactions.
While the difficult collective bargaining process in 2011 and 2012 presented challenges for the company to move culture
change initiatives forward, the customer awards referred to previously show that Air Canada’s employees are engaged and
motivated to deliver a superior customer service experience. To ensure that high levels of customer satisfaction are
maintained, many of Air Canada’s training programs are being re-evaluated. In fact, Air Canada is currently implementing a
three-year talent management plan which comprises several elements designed to ensure that the right talent is recruited and
developed with a thorough understanding of the impact that each employee has on the quality of Air Canada’s products and
services. The modular courses will focus on defining and subsequently developing key behaviors that all employees need to
understand and exhibit.
In 2013, Air Canada plans to continue fostering positive changes to its culture by promoting:
 Entrepreneurship
 Engagement
 Empowerment
 Earnings for Performance