What followed was one of the most
complex restructurings in Canadian
corporate history, lasting 18 months. The
scale of the losses – CAN$4bn (£1.8bn)
since the turn of the century – meant it
was always going to be a painful process.
There was gain from the pain and on
September 30, 2004 the airline emerged
from bankruptcy court protection. In a press
release, Robert Milton, the airline’s then
head, said: “Today marks a defining moment
for the new Air Canada and I am confident
customers and employees alike will soon
recognise the signs of a newly energised
airline poised for success.”
MODERNISATION
The end of October 2004 saw the final 747
service, completing 33 years of operation.
At the same time, a new look was
rolled out, with aircraft painted in a cream-
green livery. The inflight product was also
enhanced, as well as the announcement to
update cabins under Project XM (Extreme
Makeover).
On July 20, 2005, the airline introduced
both a fresh aircraft type and manufacturer
when the inaugural Embraer 175 flight left
Toronto for New York. The type was later
transferred to Sky Regional Airlines, but Air
Canada went on to operate 25 of the larger
E190. The airline also ordered 16 Boeing 777s
(ten of the -300ER and six of the -200LR) and
14 Boeing 787-8 Dreamliners with options for
18 and 46 (-8 and -9) respectively.
The company’s 70th anniversary in
2007 was marked by the first arrivals of the
777-300ER, configured with 42 Executive
First Suites and 307 Economy seats. The
777-200LR version was fitted with 42
Executive First Suites and 228 seats in
Economy.
Dreamliner orders now stand at 37 firm,
with 23 options. The arrival of these aircraft
will lead to the retirement of all 767s and
A330s.
There were also improvements on the
ground. Toronto Pearson International
Airport opened a new pier (F) early in 2007,
enabling the carrier to relocate all operations
into Terminal 1.
Montie Brewer, the then President and
Chief Executive Officer of Air Canada, said:
“The new pier at Pearson Airport means
that, for the first time in many years, Air
Canada is located under one roof at its main
operating hub. This will dramatically improve
the customer experience through greater
convenience, vastly reduced distances
between gates and far easier connections.”
In 2009 there was a change at the helm
when Calin Rovinescu, who had played
a major part in the airline’s restructuring,
became president and CEO.
REGIONAL REBRANDING
The company operates its regional North
American domestic and trans-border
services under what are known as capacity
purchase agreements (CPAs). Air Canada
buys the regional operators’ seat capacity,
based on predetermined rates. In reality,
this makes the smaller enterprises
contractors for Air Canada, operating flights
on its behalf. Both sides win from the CPA,
with significantly reduced financial and
business risks on one side and commercial
flexibility and connecting network traffic to
the bigger partner.
In 2011, Air Canada rebranded the whole
regional fleet under one name, Air Canada
Express. The rationale was to harmonise
the service passengers received from the
various partners.
The rebranding was part of a broader
move by Air Canada to make it clearer to
customers just what to expect in terms of
service and of aircraft size. It differentiates
the mainline from the regional operations
and from a new low-cost arm, Rouge, which
had yet to start at that time.
The move effectively put an end to the
previous umbrella brand of Jazz, however
Jazz Aviation, based at Halifax Stanfield
International Airport, still operates a
considerable proportion of the ‘Express’
services utilising Bombardier Dash 8-Q400s
and CRJ705s, alongside three other
operators.
Sky Regional initially used Q400s and
E175s from its Toronto base, however by
2017 the Brazilian jet had become its sole
aircraft type. There are now 25, flying in
excess of 100 flights per day.
Air Georgian, also working out of
http://www.aviation-news.co.uk 79
Jetz was created to satisfy the travel needs of professional sports
teams, entertainment groups and corporate clients. AirTeamImages.
com/HAMFive
All the company’s regional operations were brought together under the Jazz brand in 2001. Martyn Cartledge/aspphotography.net
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