Investor Presentaiton
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participation in frequent flyer programs and use of airport lounges. The Star Alliance® facilitates code-sharing and
passenger connections and transfers by providing a higher level of service between network connection points (which
may
include one stop check-in). The airlines have implemented initiatives, such as common utilization of facilities, and
are focusing on capturing potential synergies in additional areas. Air Canada code-shares with all Star Alliance®
members, except US Airways, TAP Portugal, South African Airways and the three regional members. In August 2005,
the Star AllianceⓇ implemented an electronic interline ticketing service which enables customers to travel across the
entire Star Alliance® network using a single electronic ticket.
Other Services
Cargo Services
The Corporation is Canada's largest provider of air cargo services as measured by cargo capacity. The Corporation
offers cargo services on domestic, transborder and international routes, using the cargo capacity on aircraft operated by
Air Canada and Jazz. The Corporation also uses two chartered all freighter aircraft for Canada-Europe and Canada-
Asia services.
The Corporation's primary customers for cargo services are large freight forwarding companies and businesses
whose products are most effectively marketed by using air cargo services. Cargo services offered by the Corporation
include services for high priority shipments (AC Expedair and AC Priority) and air freight services (AC Air Freight) to
Air Canada destinations worldwide and Jazz destinations in North America. The Corporation provides direct cargo
services to over 150 Canadian and international destinations and has sales representation in over 50 countries. The
Corporation is one of the largest suppliers of air cargo services to Canada Post Corporation. The principal routes on
which the Corporation offers cargo services are Canada-Germany, Canada-China, Canada-United Kingdom and
Canada-Japan. The new Boeing 777 aircraft ordered by Air Canada will provide further opportunities for growth of the
cargo services on international routes as these new aircraft offer more cargo capacity than the Airbus aircraft they will
be replacing.
Air Canada's cargo terminal at Toronto Pearson Airport is equipped with modern cargo handling technology to
ensure efficient cargo handling and meet the needs of customers. Air Canada's freight management system, AC Lynx,
offers a number of services including on-line tracking of cargo shipments from initial booking to delivery. Air Canada,
United Airlines and Northwest Airlines, in co-operation with Unisys, are the founding members of the Cargo Portal
Service introduced in 2003. Endorsed by key freight forwarders globally and their industry associations, this portal
represents a one-stop-shop web tool for air cargo shipping requirements by offering a large number of services on a
growing number of major air carriers.
Air Canada Ground Handling
The Corporation provides ground handling services to numerous airlines, including major foreign airlines at
Canadian and international airports. These services include passenger check-in, gate management, baggage and cargo
handling and processing, as well as aircraft ramp
services.
Air Canada Vacations
partners, hotel
Air Canada owns a 51% interest in Air Canada Vacations, a tour operator which also conducts business under the
trade name Touram. Air Canada Vacations is the fourth largest Canadian tour operator, offering a variety of leisure
vacation package options which include air transportation supplied by Air Canada and its Star Alliance®]
accommodation, cruises, Aeroplan miles and airport transfer/car rentals to popular destinations for Canadians in the
Caribbean, Asia, Central and South America and the United States, including Las Vegas, Florida and Hawaii. Air
Canada Vacations also sells surplus seat inventory to travel agencies. This part of the business is conducted through its
national consolidator division, NetairⓇ.
Approximately 77% of vacation packages currently sold by Air Canada Vacations are from Canada to destinations
in the Caribbean and Mexico. Air Canada Vacations has recently introduced new packages from Canada to Europe. It
also plans on introducing inbound vacation programs from Europe and Asia to North America with the intent of
eventually offering packages for vacations to and from most of Air Canada's foreign destinations.View entire presentation