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Category: Air Canada

  • Transporting Live Animals: Air Canada Cargo’s Position As An Industry Leader Reinforced With IATA Certification

    • First airline to receive the new Center of Excellence for Independent Validators for Live Animals Logistics (CEIV Live Animals) Certification
    • In 2017, Air Canada Cargo handled over 18,000 different animal shipments across its network

    MONTREAL, Aug. 9, 2018 /CNW Telbec/ – Air Canada Cargo has become the first airline to receive a new global certification for the safe transport of live animals. The International Air Transport Association (IATA) awarded Air Canada Cargo with the Center of Excellence for Independent Validators for Live Animals Logistics (CEIV Live Animals) Certification following successful completion of the verification process in its Montreal facility. This certification reinforces that Air Canada Cargo is operating to the highest standards in the transport of live animals, be it exotic species or household pets.

    “Air Canada Cargo is a trusted carrier for thousands of animal shippers worldwide and has followed the IATA Live Animal Regulations (LAR). We expertly handle complex shipments, from rescued dogs, endangered animals travelling between zoos for conservation efforts and of course family pets. We are honoured to have been selected to participate in the CEIV Live Certification program and are proud of the team at Air Canada Cargo for achieving the industry’s first ever certification, which reinforces our position as an industry leader,” said Tim Strauss, Vice President, Cargo.

    “I want to congratulate Air Canada for their great leadership in achieving the first CEIV Live Animals certification in the world,” said Nick Careen, IATA’s Senior Vice President, Airport, Passenger, Cargo and Security. “Proper handling and transporting of live animals is a very important aspect of the cargo supply chain, with many unique complexities. Global standards and expertise are key to the safe and humane transportation by air of this precious cargo.”

    For more information on Air Canada Cargo’s transportation of live animals, visit Air Canada Cargo’s website.

    Click here for additional information.

    IATA launched the new standardized global certification program to improve and reinforce the safety and welfare of animals travelling by air earlier this year. Air Canada Cargo was chosen to undergo a pilot for the program.

    Over several months from January to July, as part of a thorough audit, IATA’s specialists reviewed Air Canada Cargo’s live animal transport policies and procedures in its Montreal facility. Compliance with Canadian Food Inspection Agency (CFIA) was fully reviewed as was compliance with protocols like the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

  • Air Canada Announces Longlist for Canada’s Best New Restaurants 2018

    Top 10 to be revealed in November issue of Air Canada enRoute Magazine

    TORONTO, Aug. 9, 2018 /CNW Telbec/ – Air Canada is proud to present the 30 nominees for Canada’s Best New Restaurants presented by American Express. The highly anticipated longlist, drawn from a coast-to-coast culinary exploration, is out today on CanadasBestNewRestaurants.com.

    From an Italian-inflected seafood menu in a beachy Halifax room to the wildly creative charcuterie cabinet of a French bistro in Victoria, this year’s finalists celebrate the delectable diversity of Canadian cuisine. Based on the recommendations from a panel of food experts, Air Canada sends one writer on an anonymous, month-long, cross-country dining marathon to determine the most notable new openings that become contenders for the coveted annual Top 10 list.

    “For over 15 years, Air Canada has been committed to discovering the latest Canadian culinary innovations and dining destinations, and celebrating the central role they play in our customers’ travel experience,” says Andy Shibata, Managing Director, Brand, Air Canada. “This year, we want to celebrate diversity in Canada’s culinary culture and highlight chefs and restaurateurs with global backgrounds. Their achievements will be honoured and featured online and in Air Canada’s enRoute onboard magazine.”

    “Our Cardmembers are passionate about food and look to us to point them towards the country’s best restaurants and chefs,” says David Barnes, VP of Advertising and Communications, American Express Canada. “That’s why it’s a natural fit for us to pair with Air Canada and sponsor Canada’s Best New Restaurants for the fourth year running. We’re so excited about the contenders on this list this year.”

    The 2018 nominees for Canada’s Best New Restaurants are:

    1909 Kitchen, Tofino, BC; Aloette, Toronto; Atlas, Toronto; Avenue Restaurant, Regina; Bar Kismet, Halifax; Biera, Edmonton; Bistro Rosie, Montréal; Bread and Circus, Calgary; Bündok, Edmonton; La Cabane d’à Côté, Mirabel, QC; The Courtney Room, Victoria; Cruz Tacos, Calgary; Donna Mac, Calgary; Elena, Montréal; Giulietta, Toronto; Hopkins, Montréal; Il Covo, Toronto; Kanto 98th St., Edmonton; Kiin, Toronto; Kūkŭm Kitchen, Toronto; Vin Mon Lapin, Montréal; Omai, Toronto; Oxbow, Winnipeg; Passero, Winnipeg; The Restaurant at Pearl Morissette, Jordan Station, ON; Sand and Pearl, Picton, ON; Seedlings, Bloomfield, ON; Skippa, Toronto; St. Lawrence, Vancouver; Tanto, Toronto.

    Canada’s Best New Restaurants 2018 highlights the top restaurants that have launched across the country over the last 12 months and deliver memorable experiences through the quality of their food, level of service and original contribution to the Canadian dining landscape.

    The annual Top 10 ranking will be unveiled at a celebration in Toronto on October 25, 2018. Tickets for this event go on sale August 24, 2018, giving diners an opportunity to sample Canada’s Best New Restaurants all in one place. The winners will also be showcased on CanadasBestNewRestaurants.com and in the November issue of Air Canada enRoute magazine.

  • Aimia’s largest shareholder says Air Canada-led Aeroplan offer is undervalued

    Aimia Inc’s largest shareholder, Mittleman Brothers, said on Monday a buyout offer by an Air Canada-led consortium for Aimia’s Aeroplan loyalty program was undervalued.

    Mittleman, which holds a 17.6 per cent stake in Aimia, said the offer was “blatantly inadequate” and backed the data analystics firm for rebuffing the offer and continuing negotiations.

    Last week, Aimia rejected the consortium’s July 25 bid of $250 million cash and the assumption of about $2 billion of Aeroplan points liability.

    The company also rejected a raised cash offer of $325 million and said that $450 million would be a fair price for the loyalty program business.

    “If Aimia cannot obtain at least the stand-alone value of Aeroplan, $1 billion, plus a modest control premium of 20 per cent, then I’d prefer Aimia not sell it,” said Mittleman’s Chief Investment Officer Christopher Mittleman, in a statement.

    The Air Canada-led consortium includes Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and VISA Canada Corp.

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  • Air Canada Sets New Single Day Record for Customers Carried

    More than 178,000 customers expected to board Air Canada aircraft today
    More than 5.2 million customers carried in record-setting July

    MONTREAL, Aug. 3, 2018 /CNW Telbec/ – Air Canada today will welcome more than 178,000 customers on board its aircraft, a new, single-day record for Canada’s flag carrier.

    “We are delighted customers are choosing Air Canada in record numbers for their travel plans, where we carried more than 5.2 million customers in a record setting July. With the peak summer season in full force now and heading into the August long weekend, we are expecting to carry more than 178,000 customers today alone. This is a new single day achievement for Air Canada, and it surpasses our previous single day record set earlier this summer,” said Benjamin Smith, President, Airlines and Chief Operating Officer at Air Canada. “To put this accomplishment into context, it is equivalent to transporting more people living in the entire city of Saguenay, QC, or in the area of Abbotsford-Mission, BC or in the whole province of Prince Edward Island — all in one day.

    “We look forward to welcoming our customers onboard, and I thank our 30,000 employees for their professionalism and care in transporting people safely to their destinations during this busy travel season,” concluded Mr. Smith.

  • Aimia Rejects Bid by Air Canada, TD, CIBC and Visa Canada Consortium for Aeroplan Program

    • Proposal provided the best outcome for all Aimia stakeholders and Aeroplan members, and provided the only opportunity for all Aeroplan Miles to transfer into Air Canada’s new loyalty program.
    • Proposed transaction, including cash and assumption of Aeroplan’s redemption liabilities, would have delivered a sizeable premium to Aimia share price.

    TORONTO, Aug. 2, 2018 /CNW Telbec/ – Air Canada, The Toronto-Dominion Bank (“TD”), Canadian Imperial Bank of Commerce (“CIBC”), and Visa Canada Corporation (“Visa”) today announced that Aimia Inc. (“Aimia”) has rejected their proposal to acquire its Aeroplan loyalty business disclosed on July 25, 2018. The parties had set a deadline of August 2, 2018 for Aimia to accept the proposal.

    Air Canada, TD, CIBC and Visa enhanced the offer and engaged in extensive discussions with Aimia over the past several days to attempt to reach an economically viable agreement.

    The proposal would have ensured value and continuity for Aeroplan members as well as customers of Air Canada, TD, CIBC and Visa. As previously communicated, it would have also allowed Aeroplan Miles to transfer into Air Canada’s new loyalty program in 2020, providing convenience and value for millions of Canadians.

    The July 25 proposal was for a total consideration of $2.25 billion, including $250 million in cash and the assumption of approximately $2 billion of Aeroplan points liability. The proposal implied an estimated market equivalent value of $3.64 per Aimia share, a 52.3% premium to the 30-day VWAP and a 45.6% premium to the spot closing price as of July 24, 2018. The market equivalent value was comprised of the Aeroplan loyalty business proposal value of $1.64 per Aimia common share plus non Aeroplan loyalty program net assets valued at $2.00 per common share based on fair market value estimates contained in Mittleman Investment Management’s Q1 2018 investor letter.*

  • Air Canada forces runway shut down in Tokyo

    31 JUL 2018: An Air Canada flight from Montreal, mistakenly entered a half-paved taxiway at Tokyo Narita airport in Japan on Monday, forcing it to close one of its two runways. The Boeing 787 Air Canada flight from Montreal, carrying about 210 passengers and crew, was stranded for hours on the taxiway under construction alongside the runway.

    Narita airport, the country’s main international gateway, shut down the runway when the plane entered the wrong taxiway after landing, local media reported.

    There were no reports of injuries.

    Work began to tow away the aircraft five hours after it entered the partially-paved taxiway, according to public broadcaster NHK.

  • Air Canada to Reduce Flights from Gander to Halifax

    From travelindustrytoday.com |30 JUL 2018: The Gander and Area Chamber of commerce says Air Canada’s plans to cancel their late night and early morning flights from Gander to Halifax doesn’t bode well for the local business community. It says the airline plans to reduce flights at Gander International Airport starting October 28th and continuing to May 1st of next year.

    Chamber spokesperson Sonja Maloney says people needing to travel to Halifax on business must have the option of leaving on the same day.

    She adds that central Newfoundland has become a major tourist destination after the success of the Broadway show ‘Come From Away,’ as well as the popularity of the Fogo Island Inn and the province’s iconic icebergs.

  • Air Canada Reports Second Quarter 2018 Results

    Air_Canada_Logo

    • Second quarter EBITDAR of $646 million and operating income of $226 million
    • Record second quarter operating revenues of $4.333 billion
    • Record unrestricted liquidity of $5.064 billion
    • Leverage ratio of 2.1

    MONTREAL, July 27, 2018 /CNW Telbec/ – Air Canada today reported second quarter 2018 EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) of $646 million compared to second quarter 2017 EBITDAR of $681 million. Air Canada reported operating income of $226 million compared to operating income of $292 million in the second quarter of 2017. The airline reported adjusted pre-tax income of $163 million in the second quarter of 2018 compared to adjusted pre-tax income of $229 million in the prior year’s quarter. On a GAAP basis, in the second quarter of 2018, Air Canada reported a loss before income taxes of $71 million, compared to income before income taxes of $314 million in the second quarter of 2017. The second quarter of 2018 included a loss on disposal of assets of $186 million and losses on foreign exchange of $25 million while the second quarter of 2017 included gains on foreign exchange of $68 million and a gain on sale and leaseback of assets of $26 million.

    “I am pleased to report another solid quarter of revenue growth, cost containment and unrestricted liquidity, in the face of significantly higher fuel prices. Our record revenues this quarter demonstrate the appeal of Air Canada’s brand and underscore the continuing strong demand for air travel in all of our main markets. I thank our 30,000 employees for their hard work and dedication in taking care of our customers, which was recognized this month when Air Canada was named the Best Airline in North America for the second consecutive year at the Skytrax World Airline Awards celebrated in the U.K. Winning the award for the seventh time in nine years is a testament to the sustained progress we have made, something which all our employees should be very proud of, as I am,” said Calin Rovinescu, President and Chief Executive Officer of Air Canada.

    “During the second quarter, passenger revenue climbed 10.4 per cent to a record $3.921 billion and we generated EBITDAR of $646 million. We reported a solid 2.7 per cent increase in passenger revenue per available seat mile (PRASM), primarily driven by a higher yield, and also delivered a 1.0 per cent decrease in adjusted cost per available seat mile. Our unrestricted liquidity totaled a record $5.064 billion at quarter-end. We achieved these results despite contending with a 31 per cent rise in jet fuel price per litre from a year ago, showing the strength of our business plan.

    “We did, however, revise our 2018 guidance for certain key financial metrics given the rapid increase in fuel prices in the first half of 2018. Nevertheless, we believe that the impact is short-term, that our robust business will enable us to stay on track and, as a result, we continue to expect to achieve our longer-term targets that were communicated at our last Investor Day. We estimate that we will be able to mitigate approximately 75 per cent of the expected 2018 annual fuel price increase through fare increases, other commercial initiatives and our cost transformation program.

    “Everywhere, our ongoing strategy was on full display this past quarter. We launched 25 new routes this summer, introduced Air Canada Signature Service for North American premium customers, began offering satellite Wi-Fi on our wide-body international fleet, and we were recognized as one of the top five brands to work for in Canada. We also completed a complex joint venture agreement begun four years ago with Air China, making Air Canada the first North American carrier to negotiate a joint venture with a Chinese airline. This gives us unrivalled access from North America to the fastest growing and soon-to-be largest aviation market in the world, said Mr. Rovinescu.

    “The Skytrax Award shows that our customers appreciate our progress and are rewarding us with their loyalty, with our aircraft flying 83.1 per cent full on average during the quarter. I thank our customers for choosing to fly Air Canada and we are committed to giving them ever more reasons to keep doing so,” concluded Mr. Rovinescu.

    Second Quarter Income Statement Highlights

    In the second quarter of 2018, on capacity growth of 7.5 per cent, record system passenger revenues of $3.921 billion increased $371 million or 10.4 per cent from the second quarter of 2017. The increase in system passenger revenues was driven by traffic growth of 8.2 per cent and a yield improvement of 2.0 per cent, despite an increase in average stage length of 2.4 per cent which had the effect of reducing system yield by 1.4 percentage points. On a stage-length adjusted basis, system yield increased 3.4 per cent year-over-year.

    In the business cabin, system passenger revenues increased $98 million or 13.7 per cent from the second quarter of 2017 on traffic and yield growth of 10.3 per cent and 3.1 per cent, respectively.

    In the second quarter of 2018, operating expenses of $4.107 billion increased $489 million or 14 per cent from the same quarter in 2017, mainly driven by higher fuel prices year-over-year and by the increase in capacity.

    Air Canada’s cost per available seat mile (CASM) increased 5.6 per cent from the second quarter of 2017. The airline’s adjusted CASM decreased 1.0 per cent from the prior year’s quarter, better than the 0.5 per cent to 1.5 per cent increase projected in Air Canada’s news release dated April 30, 2018. Air Canada’s better than projected adjusted CASM performance was largely driven by the acceleration of aircraft lease extensions (mainly from the third quarter of 2018) which resulted in a decrease to maintenance provisions, the impact of cost reduction initiatives related to Air Canada’s cost transformation program, and other operating expense reductions.

    Air Canada recorded adjusted net income(1) of $114 million or $0.41 per diluted share in the second quarter of 2018 compared to adjusted net income of $226 million or $0.82 per diluted share in second quarter of 2017. On a GAAP basis, the airline reported a second quarter 2018 net loss of $77 million or $0.28 per diluted share compared to second quarter 2017 net income of $311 million or $1.13 per diluted share. In the second quarter of 2018, Air Canada recorded a loss on disposal of assets of $186 million related to the expected sale of 25 Embraer aircraft and losses on foreign exchange of $25 million. In the second quarter of 2017, Air Canada recorded gains on foreign exchange of $68 million and a gain of $26 million on the sale and leaseback of two Boeing 787 aircraft.

    Financial and Capital Management Highlights

    At June 30, 2018, unrestricted liquidity (cash, short-term investments and undrawn lines of credit) amounted to $5.064 billion, the highest level in Air Canada’s history (December 31, 2017 – $4.181 billion).

    At June 30, 2018, adjusted net debt of $6.111 billion decreased $5 million from December 31, 2017. In the second quarter of 2018, an increase in long-term debt and finance lease balances of $889 million was largely offset by an increase in cash and short-term investment balances of $866 million and a decrease in capitalized operating lease balances of $28 million. At June 30, 2018, Air Canada’s leverage ratio was 2.1, unchanged from December 31, 2017.

    Net cash flows from operating activities of $853 million in the second quarter of 2018 improved $24 million compared to the second quarter of 2017. Negative free cash flow (1) of $13 million in the second quarter of 2018 represented a decrease of $318 million from the second quarter of 2017 mainly due to Air Canada having received proceeds of $371 million from the sale and leaseback of aircraft in the second quarter of 2017 while no such sale and leasebacks were effected in the second quarter of 2018.

    For the 12 months ended June 30, 2018, return on invested capital (ROIC) was 13.7 per cent, significantly higher than Air Canada’s weighted average cost of capital of 7.5 per cent.

  • Proposal by Air Canada, TD, CIBC and Visa to Acquire Aimia’s Aeroplan Loyalty Business

    Benefits both Aeroplan members and Aimia shareholders

    • Allows for smooth transition of Aeroplan members’ points to Air Canada’s new loyalty program launching in 2020
    • Provides value to all Aimia stakeholders and a viable solution to Aimia’s current business and financial challenges
    • Represents a total purchase price of $2.25 billion, including $250 million in cash and the assumption of approximately $2 billion of Aeroplan points liability
    • Proposal implies approximate value of $3.64 per Aimia Inc. common share, a 52.3% 30-day VWAP premium and a 45.6% premium to spot closing price as of July 24, 2018, when added to value of Aimia’s other assets

    TORONTO, July 25, 2018 /CNW Telbec/ – Air Canada, The Toronto-Dominion Bank (“TD”), Canadian Imperial Bank of Commerce (“CIBC”), and Visa Canada Corporation (“Visa”), on behalf of a corporation to be formed, have made a proposal to Aimia Inc. (“Aimia”) to acquire its Aeroplan loyalty business (including approximately $2 billion of Aeroplan points liability at March 31, 2018) for $250 million in cash (the “Proposed Transaction”), representing a total purchase price of approximately $2.25 billion.

    The Proposed Transaction, if accepted by Aimia, will ensure value and continuity for their members as well as customers of Air Canada, TD, CIBC and Visa. The proposal implies an estimated market equivalent value of $3.64 per Aimia share, a 52.3% premium to the 30-day VWAP and a 45.6% premium to spot closing price as of July 24, 2018. The market equivalent value is comprised of the Aeroplan loyalty business proposal value of $1.64 per Aimia common share plus non Aeroplan loyalty program net assets valued at $2.00 per common share based on fair market value estimates contained in Mittleman Investment Management’s Q1 2018 investor letter.1

    The parties have requested a prompt response from Aimia regarding the proposal, which has an expiry date of August 2, 2018. The Proposed Transaction is subject to the satisfactory conclusion of transaction documents and certain other customary conditions, including due diligence, receipt of customary regulatory approvals and the negotiation and satisfactory completion of credit card agreements between Air Canada and each of TD and CIBC.

    If completed, the Proposed Transaction would result in a positive outcome for Aimia shareholders and Aeroplan members, allowing for a smooth transition of Aeroplan members’ points to Air Canada’s new loyalty program launching in 2020, safeguarding their points and providing convenience and value for millions of Canadians.

    Given Aimia’s current situation and future prospects, the Proposed Transaction delivers value to Aimia’s stakeholders. Air Canada, TD, CIBC and Visa are committed to engaging with Aimia’s board to complete a transaction and trust that Aimia’s Special Committee and Board of Directors, in discharging their fiduciary duties, will respond promptly by August 2, 2018. A timely completion of the transaction is essential for the continued participation of the parties.

  • Star Alliance Expands Connection Service to Toronto Pearson Airport

    Proactive Help for Customers with Tight Connecting Flights Marketing Campaign Launched

    TORONTO, July 23, 2018 /CNW Telbec/ – The Star Alliance Connection Service is now available at Toronto Pearson Airport. This assists passengers with tight connections between two Star Alliance member airline flights. Dedicated Connection Service staff use special software to monitor the transfer window for customers with onward flights. Cases where passengers and checked bags appear in danger of missing a connection are automatically highlighted. The Connection Service agent can thereby already consider the various options available to ensure that the customer reaches the onward flight, or if necessary book alternative options, before the inbound flight even lands.

    [youtube https://www.youtube.com/watch?v=TIjWlnOJg8k&w=845&h=476]

    “With Connection Service now available in Toronto, we will ensure that more passengers with tight connections can make their onward flight, thereby improving the travel experience at one of our main hubs in North America. We are presently working on the expansion of this service to more key hubs in our network”, said Christian Draeger, Star Alliance Vice President Customer Experience.

    Toronto is the 13th biggest Star Alliance transfer hub world-wide, with more than 400,000 passengers connecting from one Star Alliance carrier to another each year.

    In addition to home carrier Air Canada, the following Star Alliance member carriers serve Toronto: Austrian, Avianca, Brussels Airlines, Copa Airlines, EGYPTAIR, Ethiopian Airlines, EVA Air, LOT Polish Airlines, Lufthansa, TAP Air Portugal, Turkish Airlines and United. Together they offer more than 6,000 flights per week connecting Toronto to 159 destinations in 59 countries.

    “Connection Service helps enhance the airport experience for our customers travelling on Star Alliance itineraries by streamlining the behind-the-scenes processing when handling tight connections which may arise. This further strengthens the position of our Toronto Pearson global hub offering convenient connections to almost anywhere in the world,” stated Benjamin Smith, President, Airlines and Chief Operating Officer at Air Canada.

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