Air Canada 2009 Annual Report Download - page 8

2009 Air Canada Annual Report
8
3. ABOUT AIR CANADA
Air Canada is Canada’s largest domestic and international airline and the largest provider of scheduled passenger services in
the Canadian market, the Canada-US transborder market and in the international market to and from Canada.
In 2009, Air Canada, together with Jazz Air LP (“Jazz”), operated an average of 1,331 scheduled fl ights daily and carried almost
31 million passengers and provided direct passenger service to 156 destinations and, through commercial agreements with
other unaffi liated regional airlines, to an additional 11 destinations, for a total of 167 direct destinations on fi ve continents.
Air Canada enhances its network through a capacity purchase agreement with Jazz (the “Jazz CPA”) pursuant to which
Air Canada purchases substantially all of Jazz’s fl eet capacity based on predetermined rates and Air Canada determines
the routes and schedule operated by Jazz. Jazz operates small jet and turboprop aircraft that have lower trip costs than
conventional large jet aircraft, allowing Jazz to provide service to Air Canada’s customers in lower density markets as well
as in higher density markets at off-peak times throughout Canada and the United States.
Air Canada is a founding member of the Star Alliance® network. The Star Alliance® network currently includes
26 member airlines. Through its membership in the Star Alliance® network, Air Canada is able to offer its customers access
to approximately 1,077 destinations in 175 countries, as well as reciprocal participation in frequent fl yer programs and use
of airport lounges.
Air Canada is in the process of concluding arrangements for the implementation of a transatlantic alliance with
Continental Airlines, Lufthansa and United Airlines, (which, when concluded, is intended to be effective as of
January 1, 2010) and which will enable Air Canada to offer its customers more value, choice and transparency when making
their transatlantic travel plans.
Through its long-term relationship with Aeroplan Limited Partnership (“Aeroplan”), Air Canada’s frequent fl yer program
provider, Air Canada is able to build customer loyalty by offering those customers who are Aeroplan® members the
opportunity to earn Aeroplan® Miles when they fl y with Air Canada. Aeroplan is also Air Canada’s single largest customer.
The relationship with Aeroplan is designed to provide a long-term stable and recurring source of revenue from the purchase
by Aeroplan of Air Canada seats to be provided to Aeroplan® members who choose to redeem their Aeroplan® Miles for air
travel rewards.
The Corporation also generates revenues from its cargo services division (doing business as “Air Canada Cargo”) and
from tour operator services provided by its wholly-owned subsidiary, Touram Limited Partnership (doing business as
“Air Canada Vacations”).
Air Canada Cargo provides direct cargo services to over 150 Canadian and international destinations and has sales
representation in over 50 countries. Air Canada Cargo is Canada’s largest provider of air cargo services as measured by
cargo capacity. Air cargo services are provided on domestic and U.S. transborder fl ights and on international cargo services
on routes between Canada and major markets in Europe, Asia, South America and Australia.
Air Canada Vacations is one of Canada’s leading tour operators. Based in Montreal and Toronto, Air Canada Vacations operates
its business in the outbound leisure travel market (Caribbean, Mexico, U.S., Europe, South America, and Asia) by developing,
marketing and distributing vacation travel packages. Air Canada Vacations also offers cruise packages in the Caribbean,
North America and Europe. Air Canada Vacations markets its products through its website (www.aircanadavacations.com)
and a network of independent travel agencies across Canada.