Investor Presentaiton slide image

Investor Presentaiton

- 29- Trademarks Air Canada believes that its trademarks are important to its competitive position. Air Canada is Air Canada's trade name and trademark. Other trademarks include Air Canada JetzⓇ, Air Canada JazzⓇ, Jazz TM, Air Canada Vacations®, Vacances Air CanadaⓇ, Executive First®, Executive Class®, Expedair®, AC Expedair™, AC Priority™, AC Air Freight™, AC Lynx™, Hospitality Service®, Service Hospitalité®, Rapidair®, Maple Leaf™M, Feuille d'Érable™, AC WEBSAVER™, Super Elite™ and Super Élite™. Air Canada has granted Aeroplan LP a license to use Air CanadaⓇ and Air Canada Roundel® trademarks around the world solely in association with the Aeroplan program. See "Relationships and Related Party Transactions Between Air Canada and Jazz, Aeroplan and ACTS Relationship Between Air Canada and Aeroplan Aeroplan and Air Canada Trademark License Agreements". Air Canada has granted Jazz a license to use Air Canada JazzⓇ, Jazz™, Air CanadaⓇ, Air Canada Design®, Air Canada and Design® and other trademarks in Canada and the United States in association with the provision of scheduled airline services in regions of Canada and across the Canada United States border. See "Relationships and Related Party Transactions _ _ Between Air Canada and Jazz, Aeroplan and ACTS — Relationship Between Air Canada and Jazz Jazz Trademark Agreements". Air Canada protects its proprietary information, including its trademarks and database, through trademark laws, contractual provisions and confidentiality procedures. Employees, service providers and partners are contractually bound to protect Air Canada's proprietary information in order to control access to and the distribution of any such information. EMPLOYEES - As at December 31, 2006, the Corporation had 27,384 full-time equivalent ("FTE") employees (Air Canada Services 23,101; Jazz 4,283). The following table provides a breakdown of the Corporation's average FTE employees for the fourth quarter of 2006 and 2005 and for the full year 2006 and 2005 together with the unions that represent them. Fourth quarter Fourth quarter Employee Group Union (1) 2006 2005 2006 2005 Management and Administrative Support (3) N/A (2) 3,017 3,504 3,191 3,410 Pilots ACPA 2,708 2,541 2,625 2,546 Flight Attendants CUPE 5,985 6,011 6,062 6,167 Customer Sales and Service Agents (3) Technical Services, Ramp and Cargo (3) United Kingdom Unionized Employees Other Unionized CAW/IBT 3,650 3,975 3,767 3,962 IAMAW 6,812 6,924 6,812 6,766 Amicus/TGWU 697 682 691 704 478 479 482 488 Air Canada Services Jazz Total Consolidated 23,347 24,116 23,630 24,043 4,272 3,801 4,144 3,582 27,619 27,917 27,774 27,625 (1) ACPA: Air Canada Pilots Association; CUPE: Canadian Union of Public Employees; CAW: National Automobile, Aerospace, Transportation and General Workers Union of Canada; IBT: International Brotherhood of Teamsters; IAMAW: International Association of Machinists and Aerospace Workers; and TGWU: Transport and General Workers Union. Certain administrative support employees are represented by IAMAW. (2) (3) 92 In addition to the numbers presented in the table above, pursuant to the Aeroplan GSA (as defined herein), Aeroplan has agreed to reimburse Air Canada on a fully-allocated basis for all costs, including salary and benefits, related to a group of call centre employees who are mainly represented by the CAW currently working for Aeroplan's benefit. Such group represented 853 FTE employees as at December 31, 2006 and 852 FTE employees as at December 31, 2005. These employees are not included in the numbers presented above. See "Relationships and Related Party Transactions Between Air Canada and Jazz, Aeroplan and ACTS — Relationship Between Air Canada and Aeroplan Aeroplan GSA". In addition to the numbers presented in the above table, pursuant to the ACTS GSAs (as defined herein), ACTS has agreed to reimburse Air Canada on a fully-allocated basis for all costs, including salary and benefits, related to a group of unionized and a group of non-unionized employees currently working for the benefit of ACTS. Such groups represented 3,923 FTE employees as at December 31, 2006 and 4,063 FTE employees as at December 31, 2005. These employees are not included in the numbers presented above. On March 6, 2007, ACTS announced that it would permanently reduce 700 jobs at its Vancouver facility because of the early termination of its contract with Delta Air Lines for maintenance of the Delta Air Lines' Boeing 767 aircraft. See "Relationships and Related Party Transactions Between Air Canada and Jazz, Aeroplan and ACTS - Relationship between Air Canada and ACTS - General Services Agreements". Air Canada has long-term collective bargaining agreements with its pilots, flight attendants, maintenance personnel, certain clerical and finance personnel, customer service agents, ramp and cargo employees, dispatchers and crew schedulers which were concluded in 2003 and 2004 and which expire in 2009. No strikes or lock-outs may lawfully occur during the term of the collective agreements. In 2006, Air Canada concluded wage re-opener
View entire presentation