Air Canada (TSX: AC) is the largest provider of scheduled passenger services to the Canadian market, the Canada-United States (US) cross-border market, and the international market to and from Canada. The company is focused on connecting Canada and the world. The company is improving its domestic and transborder network with regional flights operated on behalf of Air Canada under the Air Canada Express banner.
Master the costs
On March 1, 2021, Air Canada announced an agreement to revise the company’s Capacity Purchase Agreement (CPA) with Jazz Aviation. Due to the devastating effects of the COVID-19 pandemic on travel around the world, Air Canada has significantly reduced its entire network.
Air Canada has reduced the company’s network capacity by 84% in the last three quarters of 2020 from 2019, while maintaining the services needed on key routes to support essential travel as well as commerce and transportation. movement of required goods. The airline continues to dynamically adjust its capacity and take other measures to adapt to demand, including due to health warnings, travel restrictions, quarantines, border closures and market conditions and regulatory.
In addition, Air Canada is permanently withdrawing certain older aircraft from the company’s fleet, namely the less efficient Boeing 767s, Airbus A319s and Embraer 190s. Removing these aircraft will reduce Air Canada’s cost structure, simplify the airline’s entire fleet and reduce the company’s carbon footprint.
Access to a vast global network
In addition, Air Canada is a founding member of the Star Alliance network. Through its network of 26 member airlines, Air Canada has the ability to offer its customers access to an extensive global network as well as reciprocal participation in loyalty programs and the use of airport lounges and other common airport facilities.
Air Canada’s Aeroplan program is Canada’s premier traveler loyalty program. The Aeroplan program allows individuals to register as members and earn Aeroplan points by traveling with Air Canada and certain partners, as well as by purchasing products and services from participating partners and suppliers. Members can redeem Aeroplan Points for a variety of travel, merchandise, gift cards and other rewards offered directly by participating partners or offered by Aeroplan suppliers.
Diversified growth engines
In addition, Air Canada Vacations is a leading Canadian tour operator that develops, markets and distributes vacation packages, operates in the overseas leisure travel market and in the leisure travel market to destinations. in Canada, and offers cruise packages to North America, and the Caribbean.
Air Canada Cargo, a division of Air Canada, is a global provider of cargo services, providing cargo services on both passenger and all-cargo flights. In 2020, in addition to carrying cargo on Air Canada aircraft providing scheduled passenger services, Air Canada Cargo began carrying cargo on all-cargo flights using Air Canada’s main wide-body aircraft. , where it increased the available cargo space by removing cabin passenger seats.
The company plans to operate all-cargo flights throughout 2021. Air Canada also expects to generate additional cargo revenue by going into e-commerce and converting several of the company-owned Boeing 767s into cargo planes. dedicated to capitalize on the growth of e-commerce. . This represents a great opportunity for growth.
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