Air Canada 2014 Annual Report Download - page 9

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9
2014 Management’s Discussion and Analysis 9
2014 Management’s Discussion and Analysis
two countries. Subject to Air Canada and Air China
making the necessary filings, obtaining competition
and other regulatory approvals and finalizing
documentation, the joint venture is expected to come
into effect by the end of 2015. The airline also has
the ability to create a transborder joint venture with
United Airlines.
Through its long-term relationship with Aimia Canada
Inc. (formerly Aeroplan Canada Inc. and referred to
as “Aeroplan” in this MD&A), Air Canada’s loyalty
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 fly with Air Canada and
with the 26 other Star Alliance® member airlines.
Aeroplan is also Air Canada’s single largest customer.
The relationship with Aeroplan is designed to provide
a stable and recurring source of revenue from the
purchase of Air Canada seats by Aeroplan, which
in turn are provided to Aeroplan® members who
choose to redeem their Aeroplan® Miles for travel
on Air Canada. Additionally, Aeroplan® members
may also choose to redeem their Aeroplan® Miles
for travel with the Star Alliance® member airlines.
Furthermore, Aeroplan® members who are among
Air Canada’s most frequent flyers are recognized and
rewarded through Air Canada Altitude™, a frequent
flyer program delivering a range of premium travel
privileges and benefits depending on the status level
they have reached.
Air Canada also generates revenue from its cargo
division. Air Canada Cargo provides direct cargo
services to over 150 Canadian, U.S. transborder
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 flights and
on international flights on routes between Canada
and major markets in Europe, Asia, South America
and Australia.