Investor Presentaiton
- 21-
During March 2007, Air Canada significantly increased the number of its flights from Canada to leisure
destinations such as Florida, California and Las Vegas. Air Canada added 31 more non-stop flights per week to Florida
for a total of 184 weekly flights. In addition, Air Canada flew 10 more non-stop flights per week to California for a
total of 143 weekly flights. Air Canada also added eight more non-stop flights per week to Las Vegas for a total of 52
weekly flights. This total increase in flights represents a 15% increase in the number of seats offered by Air Canada on
routes between Canada and these leisure destinations compared to last winter.
International Services
Air Canada is uniquely positioned as Canada's largest scheduled international airline. As at December 31, 2006,
Air Canada provided scheduled service directly to 56 destinations in Europe, the Middle East, Asia, Australia, the
Caribbean/Central America and South America.
Air Canada offers year-round trans-Atlantic services to the United Kingdom, Germany, France, Italy, Switzerland
and Israel, and seasonal services to Ireland. In the summer of 2007, Air Canada is planning to operate 15 daily flights to
London Heathrow, five daily flights to Frankfurt, one daily flight to Munich, three daily flights to Paris and two daily
flights to Rome.
Air Canada also offers services to the Asia-Pacific market via its Vancouver and Toronto hubs. Air Canada
operates daily non-stop flights to Japan (Vancouver and Toronto to Tokyo and Vancouver to Osaka), China
(Vancouver and Toronto to Beijing and Shanghai), Hong Kong (out of Vancouver and Toronto) and Korea (Vancouver
and Toronto to Seoul). In the summer of 2007, a key area of capacity growth for the Corporation is expected to be
China. Air Canada is planning to increase capacity by 50% to China, based on ASMs. Air Canada is planning to
increase its non-stop flights from Vancouver to Beijing from one daily flight to two daily flights. In addition, Air
Canada is planning to increase its non-stop flights from Toronto to Shanghai. During the peak summer period, Air
Canada is planning to operate five daily non-stop flights between Canada and China.
In addition to targeting business travelers, these services also capitalize on the high volume of passengers who visit
friends and relatives in Asia and Canada. Air Canada believes that the Asia-Pacific market continues to represent an
area of growth for air travel.
Air Canada has also expanded its services to South America, Australia and Central America/Caribbean. Air
Canada currently provides service directly to six destinations in South America, one in Australia, seven in Central
America and 23 in the Caribbean. For its March 2007 schedule, Air Canada added 22 more non-stop flights per week
from Canada to Mexico for a total of 59 weekly flights and introduced five more non-stop flights from Canada to the
Caribbean for a total of 104 weekly flights.
Jazz
_
Jazz is an integral part of Air Canada's North American strategy. Jazz operates both domestic and transborder
services for Air Canada under a capacity purchase agreement. See "Relationships and Related Party Transactions
Between Air Canada and Jazz, Aeroplan and ACTS Relationship Between Air Canada and Jazz Capacity
Purchase Agreement with Jazz". Jazz operates scheduled passenger service on behalf of Air Canada with
approximately 720 average daily departures to 59 destinations in Canada and 31 destinations in the United States.
Domestic and transborder departures account for 79% and 21%, respectively, of the 720 average daily departures.
Approximately 34% of Jazz's traffic connects to Air Canada's mainline network.
The route network operated by Jazz extends coast to coast in Canada from British Columbia to Newfoundland and
Labrador, into the United States as far south as Houston, Texas, and New Orleans, Louisiana, and as far north as
Whitehorse, Yukon and Yellowknife, Northwest Territories. The route network operated by Jazz represents one of the
largest geographical territories of any regional carrier in the world today.
Aircraft Fleet
Fleet Structure Simplification and Fleet Renewal
The fleet structure simplification which began in October 2004 includes the elimination of older, less efficient
aircraft which are not economically viable in the new market environment and the increased utilization in North
America of new large Embraer and Bombardier regional jet aircraft which have lower trip costs and are well suited for
point-to-point flying. Air Canada's fleet renewal program will provide cost efficiencies; the Embraer ERJ-190 aircraftView entire presentation