Air Canada to expand services to India
12 October 2005


Air Canada is to expand its service to India with the launch of daily codeshare flights to Mumbai, formerly known as Bombay. Flights will commence 30 October 2005 and be operated by the carrier's future Star Alliance partner SWISS via Zurich.

The same day, Air Canada will introduce its own daily flights from Toronto to Delhi via Zurich, on which SWISS will sell seats on a codeshare basis. Tickets for these flights are already available for purchase.

The growth of Air Canada's network to India via Switzerland will allow the carrier to re-introduce year-round service to Zurich from Toronto while improving its schedule to Delhi with an increase to daily flights, replacing its current three-times weekly non-stop service from Toronto. In addition, Air Canada will offer daily flights from Montreal to Zurich on a codeshare basis, operated by SWISS.

"This is great news for Air Canada customers as we improve air service between Canada and India, facilitating travel and trade in this important market," said Yves Dufresne, Vice President, International, Alliances and Regulatory Affairs. "Together with SWISS, our future Star Alliance partner, Air Canada will offer expanded choices and convenient schedules linking Toronto and Montreal to both Delhi and Mumbai with convenient one-stop service. Moreover, our customers will additionally benefit from the re-introduction of non-stop services between Toronto and Zurich on a year-round basis featuring our premium Executive First product."

Air Canada airlifts relief supplies to Guatemala for Hurricane Stan survivors

MONTREAL, Oct. 13 /CNW Telbec/ - In response to the devastation brought by tropical storm Stan in Central America, Air Canada has been working with World Vision to support relief efforts in the region.

Air Canada today dispatched a dedicated relief flight from Toronto to Guatemala City, Guatemala containing more than 12,000 Kgs of relief supplies, including over a thousand tents collected by World Vision Canada. This shipment of tents destined for the San Marco, Solola and Chimaltenango regions will allow the thousands of displaced people living in temporary shelters to return to their location of residence and begin the reconstruction of their homes.

In addition, the relief flight will carry a shipment of diapers and baby formula provided by Shoppers Drug Mart; non-perishable foods provided by Quaker Canada, CARA Operations Ltd., and Unisource Canada Inc.; and, various supplies including baby bottles and formula donated by Loblaws. These items will be distributed by the CONAVIGUA (National Organization of Widows of Guatemala) and by the MOJOMAYA (Mayan Youth Movement) local non-governmental organizations in Guatemala.

Air Canada employees have worked around the clock to prepare and dispatch the donated Airbus 321 and voluntary crew. The Air Canada Airbus A321 is the largest narrow-body aircraft in its fleet. All usable space in the belly and the cabin will be used to transport relief supplies.

"On behalf of Air Canada all of the ACE group of companies, I want to express our sadness, and extend our sympathy and support to the vast number of people affected by this devastating event," said Robert Milton, Chairman, President and CEO of ACE Aviation Holdings. "Once again, Air Canada is doing its part in the international relief effort by bringing much needed material and humanitarian supplies to those in need of assistance following this major disaster in Central America."

To help in this relief effort NAV CANADA and the Greater Toronto Airport Authority (GTAA) will both respectively waive domestic overflight fees and landing and aircraft parking fees.

Since the beginning of the year, Air Canada and the entire ACE group of companies have already collaborated with World Vision in support of relief and reconstruction efforts in countries devastated by the tsunamis. Air Canada also participated, along with U.S. member airlines of the Air Transport Association, in a voluntary airline industry initiative to support rescue and relief operations in the region ravaged by Hurricane Katrina.

Air Canada will continue to work closely with Canadian aid agencies to provide humanitarian aid to disaster victims around the world as required, including Pakistan, should the transportation of relief supplies from Canada to earthquake victims in that country be deemed appropriate.

Air Canada Cargo donates cargo flight to airlift World Vision relief supplies to Pakistan

MONTREAL, Oct. 22 /CNW Telbec/ - A donated Air Canada Cargo relief flight departed Toronto earlier today destined for Islamabad, Pakistan carrying more than 160,000 lbs of World Vision relief supplies in response to the devastating earthquake in South Asia and the urgent need for relief supplies in Pakistan.

The World Airways MD11 all cargo aircraft carried World Vision supplies destined for the hardest-hit regions, including the North West Frontier Province of Pakistan. Air Canada employees worked around the clock to prepare and dispatch the aircraft, loading 150 pallets of supplies containing 4,094 World Vision tents capable of sheltering between four and eight people, 5,520 tarps, generators, and emergency lights.

"It is with equal amounts of sadness and pride that we embark on yet another relief mission with World Vision," said Robert Milton, Chairman, President and CEO of ACE Aviation Holdings. "On behalf of Air Canada Cargo and all of the ACE group of companies, I want to extend our deepest sympathy and support to the immense number of people affected by this catastrophic event."

To help in this relief effort, World Airways provided heavily discounted lease rates, NAV CANADA and the Greater Toronto Airport Authority (GTAA) will both respectively waived domestic overflight fees and landing and aircraft parking fees.

"Children and their families are desperately waiting for these materials," said Dave Toycen, president and CEO of World Vision Canada. "Air Canada's generosity is helping us ensure that the basic needs of thousands of people affected by the earthquake are met. The supplies delivered today will have a huge impact, particularly in response to the needs of children who require special care and support during emergencies."

Since the beginning of the year, Air Canada and the entire ACE group of companies have already collaborated with World Vision in support of relief and reconstruction efforts in countries devastated by the tsunamis. Air Canada also participated, along with U.S. member airlines of the Air Transport Association, in a voluntary airline industry initiative to support rescue and relief operations in the region ravaged by Hurricane Katrina. On October 13, Air Canada dispatched a dedicated relief flight to Guatemala in conjunction with World Vision.

Is air canada adding the inseat video onto their plane now? :)

^^Well the plan was to start the narrowbody fleet starting fall(which is now) and the widebodies in early 2006....but I don't know what is really happening..........

I believe the first narrowbodies to receive the AVOD are actually the new Embraer 190s which have yet to be delivered. From what I understand (I forget if I read it on airliners.net - may not be credible) the company that is providing the technology for the PTVs is having trouble meeting deadlines, so the first E190 that was supposed to be delivered next month will now be delivered in December.

Again, not really an answer, as I have no clue what is happening with the rest of the fleet. Hopefully the refits will start soon if they haven't already.

The only route with PTVs is the Toronto - Hong Kong one.

Air Canada to axe Glasgow flight
21 October 2005
Travel Trade Gazette UK

Air Canada has confirmed that it will not run its summertime-only Glasgow-Toronto service next year.

The carrier denied that competition from low-cost rivals was forcing it to abandon its link to Scotland.

Two rival airlines, Zoom and Thomas Cook Airlines, which operates flights for Canadian Affair, have made big inroads into the Glasgow market, putting pressure on Air Canada.

But a spokesman said the decision was due "to fleet changes". Air Canada has emerged from bankruptcy protection, but has been unable to update its fleet and is short of aircraft.

Uncertainty also surrounds Air Canada's summer-only Manchester-Toronto service, which was temporarily handed to BMI while it was under bankruptcy protection.

"We have made no announcement in respect of Manchester," said the spokesman.

Budget rivals move in as Air Canada scraps direct flights from Scotland after 60 years
TOM GORDON OTTAWA and CAMERON SIMPSON
27 October 2005
The Herald

AIR Canada yesterday axed its daily flights from Scotland amid fierce competition from budget carriers.

The airline, which had served Scotland formore than 60 years, flew daily to Toronto from Glasgow, usually from May to October.

Kevin Johnson, spokesman, said: "Due to changes in advance of next year's schedule, Air Canada has decided that it will not be providing a direct service from Glasgow to Canada during 2006.

"We are committed to the Scottish market and will continue to offer convenient connections to a range of daily services to Canada from London Heathrow. We will honour our commitments to customers and will offer alternative flight options for those affected by this schedule change."

The move came despite soaring demand for flights to North America, which led to air traffic from Glasgow to Canada rising 10-per cent last year to a record high.

Toronto is the second most popular long-haul destination from Glasgow afterDubai.

The news broke as Jack McConnell visited Ottawa to strengthen links with exiles and other figures in North America.

After talks between the first minister and Hugh Boyle, chairman of Zoom airline, the budget carrier announced it was expanding its direct Scotland to Canada flights. Mr Boyle said Zoom would add a further service from Glasgow to Toronto for next summer, increasing the number to three a week.

He said: "This new service demonstrates our commitment to provide year-round low-cost scheduled and direct services from Glasgow to Canada. I was delighted to tell the first minister that we have tremendous support from the public both in Canada and Scotland."

Another budget carrierwas also quick to react. Glasgowbased Canadian Affair, which charters flights from Thomas Cook Airlines, said it would operate five flights a week to Toronto starting on May 1, increasing to seven days a week from June 27 to September 20.

Mr McConnell said: "We knew obviously that they have been cutting costs and having problems for some time, so we were aware that a decision was imminent. It's a disappointment, but these things are going to happen and we need to constantly aggressively promote Scotland as a direct route destination.

"The carriers might change but I want to increase the number of routes not decrease it."

Air Canada takes delivery of Embraer's 100th E-Jet
24 October 2005

http://www.asiatraveltips.com/newspics/0510/Embraer175AirCanada.jpg


Embraer delivered its 100th E-Jet last week, an Embraer 175 belonging to Air Canada. The airline has already placed nine jets of this model in scheduled passenger service. Delivery of the 100th Embraer 170/190 aircraft comes only 19 months after Embraer’s first E-Jet delivery.

Air Canada takes delivery of Embraer's 100th E-Jet

“The delivery of our 100th E-Jet is a great achievement for our new family of aircraft. We are honored that Air Canada, our first worldwide Embraer 175 operator, is receiving this commemorative airplane,” said Frederico Fleury Curado, Embraer's Executive Vice-President, Airline Market. “With 60 Embraer E-Jets on firm order - 15 Embraer 175s and 45 Embraer 190s, Air Canada is uniquely positioned to reap the benefits of this new family of aircraft, specifically designed for the 70 to 110 seat market.”

Air Canada ordered 15 Embraer 175s, with deliveries to be completed in January 2006. Configured to offer premium comfort and service to 73 passengers in two classes, the carrier’s new airliners have nine Executive seats plus 64 Hospitality seats, and offer an inflight entertainment system with individual screens for all passengers.

Air Canada also has 45 93-passenger Embraer 190 aircraft on firm order.

Kamloops, B.C. Launches Campaign To Lure WestJet Flight
By Monica Gutschi
31 October 2005

KAMLOOPS, B.C. (Dow Jones)--This western Canadian city boasts a huge pulp-and-paper mill and an Olympic-standard ski hill. It has a spanking new university, a symphony and two live theaters. It's also a bustling railway hub with so many sports facilities that it will host the World Junior Hockey Championship next year.

City boosters say Kamloops has everything to attract businesses, tourists and families. But what it doesn't have is much choice in airlines.

And that's what city officials hope to change. They've launched an Internet campaign to convince Calgary-based WestJet Airlines Ltd. (WJA.T) to add Kamloops to its growing network.

"We feel that improved air service is the Number One economic driver," says Jeff Putnam, executive director of economic development agency Venture Kamloops. "Kamloops is a growing community with a growing economy. We are probably one of the largest Canadian cities that WestJet doesn't serve yet."

ACE Aviation Holding's (ACE.B.T) regional airline, Air Canada Jazz, flies into the southern British Columbia community four times a day from Vancouver, but only once a day from Calgary. It will add one weekly flight to Calgary during the winter to provide better connections for Europeans coming to Kamloops to ski.

Central Mountain Air provides service between Kamloops and the northern B.C. town of Prince George.

Kamloops officials believe the municipality needs more access to Calgary, a booming oil hub that is one of Canada's fastest-growing cities. Of the 5,700 city residents who have registered on the Web site www.kamloopswantswestjet.com , 64% said they would fly to Calgary two to five times a year. Nearly half would travel to visit friends and family while about 13% would travel on business.

A Calgary gateway would also open up eastern Canada for residents, Putnam notes. "There's a lot of pent-up demand for eastern Canada and the Prairies," he says.

Although Kamloops officials are also lobbying ACE Aviation for more flights to Calgary, what they most want is WestJet service.

They've seen how nearby Kelowna, B.C., a big tourist destination for Calgary's oil elite, has blossomed with the addition of WestJet service. WestJet offers three direct flights and four connecting flights daily between Kelowna and Calgary. ACE Aviation has three direct flights and six connecting flights a day. The city is also served by Horizon Air, Central Mountain Air and Harmony Airways and has air access to Vancouver, Edmonton, Seattle, Toronto, Honolulu and Las Vegas as well as a number of smaller B.C. towns.

Kelowna has ballooned to 105,000 inhabitants from about 75,000 only 10 years ago. Passenger volumes through the airport rose 3.6% in 2004 to 894,561.

Putnam says better air service is "an opportunity for people and business to move more readily." He believes the entry of WestJet to Kamloops would stimulate increased traffic because of the discount airline's "price point and philosophy."

He doesn't believe WestJet's entry will prove negative for Air Canada, but spark a more competitive environment and provide greater options for Kamloop's 82,000 residents. In preparation, the airport is lengthening its runway to accommodate wide-body, long-haul aircraft. "We just want them to know how badly we want them," Putnam says.

WestJet's chief executive, Clive Beddoe, says the Internet campaign is "flattering," but it won't necessarily get results.

"Only the economics sways us," he said in an interview. The airline is frequently lobbied by numerous cities hoping it will add them to its network. While the Kamloop's Internet campaign is one of the more creative pitches and a great boon for WestJet, Beddoe said the airline always does a careful analysis before initiating flights to a new location.

The discount carrier will be adding between seven and eight new Boeing 737 aircraft next year and does plan to add new Canadian and U.S. destinations to its network.

Westjet is a good airline, when I'm in Canada, I'll be sure to Travel westjet. Just with Canadian Airlines, They should be expanding their reach up to northern Canada, to Yellowknife, Whitehores, Iqualit and so on, even if it is a few flights a week, instead of leaving it for the Independant and Regional Carriers. But Westjet has abit more of a better regional Network than Air Canada (Mainline, not Jazz or such).

Air Canada Receives Binding Arbitration Decision In Matter Of Boeing Widebody Order
1 November 2005

MONTREAL (Dow Jones)--ACE Aviation Holdings Inc.'s (ACE.B.T) Air Canada has received a binding decision by Martin Teplitsky resolving the matter of pilot costs and other issues relating to the airline's acquisition of Boeing 777 and 787 aircraft.

In a news release, Air Canada said Teplitsky's decision upholds the terms of the tentative agreement reached by the Air Canada Pilots' Association and Air Canada on June 9.

As reported, details of the tentative agreement weren't disclosed.

The airline said Tuesday that it's "pleased" with Teplitsky's decision, which provides the company with the "certainty" required on pilot costs relating to the acquisition of new Boeing widebody aircraft.

Air Canada said it can re-engage Boeing Co. (BA) to conclude an agreement on the acquisition of new widebody aircraft and move forward with plans for the airline's future.

WestJet Seeks Growth In Markets Near And Far
By Monica Gutschi
1 November 2005

CALGARY (Dow Jones)--First, WestJet Airlines Ltd. (WJA.T) took on Canada. Now, it plans to take on the world.

Over the next few years, the Calgary-based discount carrier is setting into place the bases to carry more passengers, fly longer distances, establish a regional feeder network, and connect with international airlines.

"We're 30 million people in Canada," chief executive Clive Beddoe said in an interview. "So where do we grow?"

The answer, it seems, is globally.

Less than 10 years after WestJet began with three Boeing 737-200 planes, the "little airline that could" has not only outgrown its home region, but Canada itself. It now has a solid 30% share of the domestic market and a growing number of U.S. destinations, including Hawaii. But even though its Boeing 737 fleet doesn't have the range to reach beyond North America and the Caribbean, that's not stopping WestJet.

Early next year, it will launch a new reservation system that has been in the works for three years. The new system will allow WestJet to offer different fare classes with varying bundles of benefits, such as refundability, seat selection and multiple changes, all of which are now unavailable.

Its larger rival, Air Canada, a unit of ACE Aviation Holdings (ACE.B.T), already offers different fare classes, which Beddoe says allows it to gain a "fare premium" over his airline. The new system, he says, will "close that gap."

Under phase two, the new reservation system will also help WestJet eliminate another advantage that Air Canada now holds. It will allow WestJet to "host smaller airlines" on its network.

"By giving them access to our inventory, we will be building our own feeder network," Beddoe says. Alliances with small regional airlines throughout Canada will give residents in smaller, remote communities around the country the ability to book connecting flights on WestJet's main network.

Similarly, ACE Aviation's regional airline, Jazz, uses a mix of turboprops and regional jets to serve smaller communities and connect with Air Canada's broader network.

Eventually, Beddoe says, the reservation system will allow WestJet to form alliances with large international carriers to coordinate connecting flights globally.

In that way, the smaller airline can mimic Air Canada's broad domestic and international network without veering from its low-cost carrier roots - allowing it to keep one aircraft type, a relatively small administration, and fewer pilot bases.

More importantly, Beddoe says, it will allow WestJet to maintain its key advantage - its friendly and efficient culture - while closing the revenue gap on its rival.

"There's a collision occurring," Beddoe says.



Continues To Battle High Fuel Prices


Meanwhile, it continues to add new airplanes and should have 63 Next Generation Boeing aircraft in its fleet by the end of next year. The last four of its older and less-efficient Boeing 737-200 airplanes should be phased out by January and it is scheduled to take delivery of 11 new aircraft over the year.

Beddoe says the upgraded fleet should help WestJet buffer the continuing headwinds of high oil prices, as the newer aircraft use about 30% less fuel. He's also hopeful the crack spread - or the differential between WTI crude and jet fuel - will continue to ease.

Nevertheless, he acknowledges that fuel expense remains the company's biggest challenge. In fact, it contributed to WestJet posting two consecutive quarterly losses in the past year and has hung over its stock price in recent months.

WestJet shares touched a 52-week low of C$9.35 last week and are well below their 52-week high of C$17.29 reached in March.

The drop has caused some rumblings among WestJet ranks, as staff compensation is tied to the share price. About 86% of employees own company shares (a fact loudly touted in the airline's latest advertising campaign). However, Beddoe says employee purchases of shares has risen as the price has fallen. He sees that as a vote of confidence in the company's future.

And he does see "light at the end of the tunnel."

A fuel-hedging strategy and surcharges have offset some of the rising fuel costs, while the collapse of Montreal-based rival Jetsgo in March reduced some of the pricing pressure seen last year.

Although the initial shock of seeing prices surge in the wake of Jetsgo's demise hurt traffic, Canadians now appear willing to pay higher fares on the more-popular routes, Beddoe says. And he says WestJet has been reasonably successful in its campaign to attract business travellers, estimating they make up about 40% of the airline's passengers.

The rapid escalation of landing fees and other navigational charges has also become less of an issue, Beddoe says.

He believes the company could generate C$1.5 billion in revenue next year. It generated C$1.06 billion in revenue in 2004.

WestJet is to release its third-quarter 2005 financial results on Thursday.

1 November 2005


Air Canada today welcomed the addition of ten new aircraft gates at Toronto's Lester B. Pearson Airport; a milestone in the redevelopment of Canada's largest airport that will ease the airport experience for many of the airline's customers flying to, from and via Toronto on international trips.

Effective today, the addition of international gates at Terminal 1 allows Air Canada to operate all of its prime international flights from Terminal 1 Pier E, eliminating ground transportation to and from the airport's Infield Terminal.

"The addition of international gates at Terminal 1 allows Air Canada to provide a more seamless travel experience for our international customers flying to, from and via Toronto, as well as our domestic customers connecting to Europe, Pacific and Latin America long haul flights," said Ben Smith, Vice President, Network Planning, Air Canada. "With more than 50,000 Air Canada customers flying to, from or connecting through our Toronto hub every day, same-terminal connections will contribute to the overall efficiency of our largest hub."

The next phase of redevelopment scheduled to be completed in 2007, will see the opening of Pier F at Terminal 1, at which time Air Canada's U.S. transborder flights will move from Terminal 2 to Terminal 1. In addition, new improved transit facilities will be in place allowing the airline to offer more seamless connections for its U.S. transborder and international connecting customers. The airline will also open two new Maple Leaf Lounges for U.S. transborder and international customers.

Air Canada customers currently enjoy a number of features in the new terminal that are geared to making their travel experience easy and efficient including: 30 conveniently located check-in kiosks; 88 check-in counters; a new customer service counter located at the gate area to facilitate changes to customers' travel plans; and Maple Leaf Lounges located in Terminals 1, 2 and the Infield Terminal.

ACE Aviation Sees New Boeing Planes Arriving In 2007
2 November 2005

TORONTO (Dow Jones)--ACE Aviation Holdings (ACE.B.T) hopes to receive the first of a batch of new Boeing 777 aircraft in early 2007, now that a US$6 billion order for the planes has been revived.

"All in all, given the delay, it's not a bad outcome," chief executive Robert Milton said Wednesday.

He said Alan Mulally, chief executive of Boeing Co. (BA), called late Tuesday to confirm his company is "still very much willing to live up to the deal" reached earlier this year.

In April, ACE Aviation announced it would buy 32 widebody aircraft from Boeing, with options to buy up to 64 more over the next 10 years. However, the deal was scrapped in June after the Air Canada Pilots' Association rejected the wage scales and working conditions offered to fly the fleet.

The dispute was later sent to arbitration.

On Tuesday, the airline announced that an arbitrator had resolved the dispute related to the acquisition of Boeing 777 and 787 aircraft. The ruling upheld the original agreement reached in June.

Milton said Boeing would respect the pricing and delivery flexibility of the original deal, although ACE Aviation has lost the first few delivery slots which were scheduled for 2006.

He said he hopes to receive between six and seven Boeing 777 aircraft in the first half of 2007, with the first delivery in January.

As well, Milton said the resolution of the pilot dispute will allow the airline to bring in used Boeing 777 airplanes during 2006. That could allow the airline to phase out some of its older Airbus 340s by the end of the year.

Corrected Nov. 2, 2005 15:42 ET (20:42 GMT) [ 11-02-05 1111ET ]

ACE Aviation Holdings Inc.'s (ACE.B.T) Robert Milton said Boeing would respect the pricing and delivery flexibility of the original deal, although ACE has lost the first few delivery slots, which were scheduled for 2006.

ACE Aviation Still Committed To Eventual Jazz IPO
2 November 2005

TORONTO (Dow Jones)--ACE Aviation Holdings (ACE.B.T) remains committed to an initial public offering of a stake in its Jazz regional airline, chief executive Robert Milton said Wednesday.

However, if the market outlook for income-trust structures remains uncertain, ACE Aviation could consider a straight share IPO for Jazz, he said.

ACE Aviation postponed an expected IPO for the Halifax, N.S.-based regional airline in September after the Canadian government announced it was suspending advance tax rulings on income trusts.

ACE Aviation had planned to offer a stake in Jazz as an income trust, much like its successful IPO of its Aeroplan loyalty program earlier this year. Under that deal, ACE Aviation raised C$287.5 million by selling 15% of the Aeroplan Income Fund (AER.UN.T).

Income trusts have been increasingly popular investment vehicles in Canada, with its aging population. Income trusts don't pay corporate taxes, allowing them to pay the bulk of their cash flows to unitholders.

But the Canadian government, which estimated it lost C$300 million in tax revenue last year due to company conversions, is now reviewing the income-trust structure with a view to changing tax laws. The move has put a damper on the popularity of income trusts.

Milton said ACE Aviation is awaiting more stability in the income-trust market before launching the Jazz IPO, and reviews the situation daily. He said if stability doesn't appear forthcoming, "we would look to" a straight share IPO.

He noted that Jazz has already completed all the paperwork necessary to offer shares to the public and said the company remains "ready to launch" on short notice when it determines an opportune moment.

ACE Aviation 3Q Oper Net C$320M
2 November 2005

MONTREAL (Dow Jones)--ACE Aviation Holdings Inc. (ACE.B.T) swung to a profit in the third quarter, reflecting passenger revenue increases in all markets and the absence of reorganization and restructuring items which were recorded in the third quarter of 2004.

Net income for the third quarter of 2005 was C$270 million or C$2.33 a share and included a provision for income taxes of C$128 million. This compared to a net loss of C$81 million which included reorganization and restructuring items of C$313 million recorded in the third quarter of 2004 and an income tax provision of only C$1 million.

In a news release, ACE Aviation said operating income was C$320 million for the latest quarter, an increase of C$77 million from the operating income before reorganization and restructuring items of C$243 million recorded in the third quarter of 2004. Per share figures weren't provided.

The Thomson First Call mean share earnings estimate for the latest quarter was C$1.48.

EBITDAR, or earnings before interest, taxes, depreciation, amortization and obsolescence and aircraft rent, of C$550 million was achieved in the latest quarter, an improvement of C$36 million over the 2004 quarter.

Passenger traffic, as measured by revenue passenger miles, increased 9% on a capacity increase of 6%, as measured by available seat miles, resulting in a passenger load factor improvement of 2.0 percentage points, ACE Aviation said.

Operating expenses increased C$260 million or 12% over the third quarter of 2004 and included a fuel expense increase of C$213 million or 46% versus the 2004 quarter on a capacity increase of 6%, the company said. Excluding fuel expense, unit cost was reduced by 3% from the third quarter of 2004.

ACE Aviation is the parent holding company of airline Air Canada.

WestJet profit rises with fleet, traffic growth

MONTREAL, Nov 3 (Reuters) - Profit rose 44 percent at WestJet Airlines Ltd. as Canada's rapidly expanding No. 2 carrier flew more passengers and fuller planes, the company said on Thursday.

WestJet, which has expanded its network in the face of surging fuel prices, earned C$30.3 million ($26 million) or 23 Canadian cents a share, up from year-earlier C$21.1 million, or 17 Canadian cents a share.

Analysts were looking for the Calgary, Alberta-based no-frills airline to earn 21 Canadian cents a share in the quarter, according to Reuters Estimates.

Revenues rose 31 percent to C$406 million from C$310 million.

WestJet's capacity rose 17 percent, while passenger traffic rose 20 percent. As a result, its load factor rose to 78.6 percent from 76.6 percent, which means the airline's planes flew fuller.

Yield, a key measure of revenues for each passenger mile, rebounded to 18.3 Canadian cents from 16.8 Canadian cents a year earlier, the company.

($1=$1.18 Canadian)

Will AC get it first 3 777s by early 2006?
And are also planning to lease 777s or buy used planes?

From what i looked at AC will start adding PTVs and refurbishing their international planes in september 2005 ut i'm not sure if its true or not but thats wat they said.

Yes, AC is looking at used 777s. AC said it will phase out some of its older A340s at the end of 2006, and bring in the new 777. The used 777 will be in AC hands mid 2006 for planned summer routes.

Recently I head AC will be putting PTVs starting Dec 2005.

TORONTO

^^They are first comming on the E190, which are due to arrive in either later this month or early December

Air Canada cuts free meals in Canada, U.S.
By BRENT JANG
Thursday, November 3, 2005 Page A10

TRANSPORTATION REPORTER

No hot meals, please. We're Air Canada passengers.

The country's largest airline has scrapped complimentary meals on its long-haul flights within Canada and the continental United States, leaving consumer advocates feeling rather empty.

Instead of free breakfast, lunch and dinner service, Air Canada is charging a loonie to $5 for a selection of snacks and cold sandwiches starting this week.

"The lack of hot meals over a trip from Ottawa to Vancouver is distressing, to say the least," said Harry Gow, co-founder of lobby group Transport 2000.


"As a passenger, I'm saddened. Paying for cold food on a long trip is inadequate. It doesn't cut the mustard."

Air Canada had eliminated hot meals on many of its short-haul North American routes as it struggled financially in 2003.

But its user-pay Onboard Café program has been expanded to include all economy-class seats (sometimes called hospitality class) on flights lasting more than 90 minutes in Canada and the continental United States.

The airline says its "buy on board" program boasts a "popular, innovative menu of reasonably priced items featuring brand, quality and choice."

Air Canada's website yesterday encouraged customers to "grab a snack from our all-day pantry."

The selection includes $1 for pretzels or breath mints, $2 for tuna salad or potato chips and $5 for a grilled chicken fajita sub or vegetarian pita wrap.

The website added that it's "cash sales only and taxes included in all prices."

Air Canada played down the change, pointing out that numerous U.S. airlines have jettisoned their free hot meals in favour of user-pay offerings of cold snacks.

"It's consistent with an industry trend to move toward giving customers the option of purchasing a meal when one is not provided," Air Canada spokeswoman Laura Cooke said.

Executive-class passengers will continue to receive complimentary hot meals on many long-haul flights within North America, and travellers to Hawaii, Mexico and overseas will be able to dig into hot meals as they did before.

As well, Air Canada passengers who pay higher fares will be exempt from coughing up their spare change for a cold sandwich.

Michael Janigan, executive director of the Public Interest Advocacy Centre in Ottawa, slammed the reduction in food service.

"There's no end to the ingenuity of Air Canada to think up things to charge for," Mr. Janigan said, complaining that the airline began asking this week for a toonie for a "comfort zone" kit consisting of an inflatable plastic pillow and polyester blanket.

A spokeswoman for WestJet Airlines Ltd. said the discount carrier never offered hot meals in the first place because it's aiming for the lower-fare market.

Consumer groups add that pet owners howled with outrage recently when Air Canada raised rates to transport animals within Canada to $105 for a one-way ticket from $40.

Industry analysts say that Air Canada, which emerged from bankruptcy protection 13 months ago, operates in a fiercely competitive industry and needs to shave costs wherever possible.

Air Canada's parent company, ACE Aviation Holdings Inc., announced yesterday that it reaped an impressive $270-million profit in its third quarter, a vast improvement from its $81-million loss in the same period in 2004.

Westjet announced new routes today.

The carrier also announced new direct services Calgary-Fort McMurray, Vancouver-Las Vegas, Hamilton-Orlando and Winnipeg-Orlando beginning in January. It will increase capacity on several existing routes as well.

http://atwonline.com/news/story.html?storyID=2974

WestJet targets rival's fewer frills
Beddoe sees competitive edge as Air Canada cuts passenger perks
4 November 2005
The Globe and Mail

WestJet Airlines Ltd. expects to capitalize on Air Canada's shift away from being a full-service carrier, WestJet chief executive officer Clive Beddoe says.

With Air Canada cutting many of its frills, that should entice more passengers to fly WestJet, Mr. Beddoe said yesterday in an interview. “The reality is that the full-service and discount models are coming together.”

Mr. Beddoe pointed out that, while Air Canada has chopped certain services, WestJet has added some frills, such as individual TV screens on the back of each seat.

Air Canada's elimination of hot meals on its economy-class seats in Canada and the continental United States is one example of how WestJet is benefiting from its rival downgrading services, said Mr. Beddoe, noting that his airline has never offered such meals.

Calgary-based WestJet has a “buy on board” program, where passengers pay for snacks and cold sandwiches — a system that's being expanded at Montreal-based Air Canada and also in use at numerous U.S. airlines.

Looking ahead to his company's strategy to add more consumer-friendly services, Mr. Beddoe said WestJet plans to revamp its website to make it possible for its passengers to book hotel rooms and car rentals. That would be part of the fledgling WestJet Vacations Inc.

He made the comments after WestJet announced a 43-per-cent jump in its third-quarter profit. The airline overcame some of the sting of high fuel prices by boosting surcharges on base fares, using more fuel-efficient aircraft and buying hedging contracts.

WestJet earned $30.3-million or 23 cents a share, compared with $21.1-million or 17 cents in last year's third quarter. Revenue rose to $406-million from $310-million.

Mr. Beddoe said his company enjoyed a $55.8-million operating profit, giving it an operating profit margin of 13.7 per cent. That's higher than the 11.3-per-cent margin that Air Canada announced on Wednesday, when Canada's flag carrier boasted that, at the time, it had the best third-quarter margin in North America's airline industry.

“WestJet reported a higher margin, but Air Canada did very well, too,” said Jacques Kavafian, an analyst at Research Capital Corp.

Analysts say WestJet recognizes that many of its customers want some frills. WestJet is considering adding a range of options to lure passengers willing to pay extra for services. Some features, such as in-flight movies, likely will be introduced within weeks, and others could take a couple of years, such as Internet access and satellite radio.

WestJet doesn't carry pillows on its flights, so with Air Canada now charging $2 for a “comfort zone” kit consisting of an inflatable plastic pillow and polyester blanket, the gap has narrowed in that area of service, too, analysts say.

Ben Cherniavsky, an analyst with Raymond James Ltd., said WestJet's passenger loads should be healthy in the fourth quarter.

Yesterday, WestJet announced that its October load factor, or proportion of available seats filled, climbed to 73.5 per cent, from 68.7 per cent in the same month in 2004. The carrier's revenue passenger miles (RPMs), or the number of paid seats multiplied by the distance flown, rose 16.5 per cent to 665.6 million.

Air Canada said its October load factor increased to 77.9 per cent from 77.7 per cent, while its RPMs rose 4.9 per cent to 3.53 billion.

Mr. Beddoe said that in some instances, Air Canada has been undercutting WestJet's fares on routes where the country's largest airline senses it is losing market share, but the competitive environment is constantly changing, so he didn't wish to generalize about ticket prices.

He said WestJet monitors Air Canada's pricing practices daily, and “we may or may not adjust our fares, depending on how strong our bookings are.”

Air Canada president Montie Brewer said Wednesday that his airline isn't intentionally undercutting WestJet.

I new 777s is most likely to have PTVs right but what about the used 777s?

^^I doubt it, but you never know:D

The used ones will come with the PTV's equipped with AC's new interior, seats and etc... The used 777 will be probably in AC's hand early summer 2006 for major asian routes. Since the PTV's get equipped during December, AC will enter the used 777s with PTV's.

TORONTO

I hope AC won't cut more free food on there flights!

If people will start paying $5 for a sandwich, will it at least be good? The stuff on VIA trains isn't great, even though it's expensive

Plane engine catches fire, extinguished; bird blamed
6 November 2005

CALGARY -- Passengers on board an Air Canada flight experienced a few brief moments of terror Friday evening after an engine on their plane burst into flames shortly after takeoff.

The fire was extinguished after only a few minutes, and the plane circled Calgary for about a half-hour to dump fuel before making a safe landing.

Air Canada officials said late Friday that the fire was the result of a bird being sucked into the engine of the plane, which was on its way to Ottawa.

Stephen Hazel, sitting in a seat directly beside the engine that caught fire, said the sight of the flames caused an immediate adrenaline rush.

"I thought 'I could well die here,"' Hazel said. "We were still climbing very steeply and there was a very loud bang and I thought 'the engine exploded.'

"The noise stopped but I looked down and the engine was clearly on fire -- flames coming out the back, lots of sparks."

Police and airport staff received dozens of calls from Calgarians who heard the blast and saw a trail of flame spewing from the aircraft.

"There were sparks from the engine and underneath the wings," said Suzanne Van Maarion, who was walking her dog when she heard two loud explosions overhead.

"I really got a show... I thought they were going to crash," she added.

The Airbus A319 had 99 passengers and crew, Air Canada spokeswoman Isabelle Arthur said.

Arthur said the pilots on the flight followed normal procedure, which is to shut down the engine and return to the airport.

She said no injuries were reported.

Maintenance crews inspected the aircraft on the tarmac and reported the engine's fire extinguishers did not deploy, indicating there was no fire, said Arthur.

"The impact of a bird going through an engine may cause flames," she said, adding the airline is doing a thorough investigation.

Hazel, a frequent flier, said he and his fellow passengers calmed down after the flames were extinguished.

"I called out 'fire's out,' then people relaxed and started joking," Hazel said.

-- Canadian Press

I hope AC won't cut more free food on there flights!

Air Canada charging extra for meals

Beginning this week, passengers flying on Air Canada within North America in the lower-fare classes will have to pay for breakfast, lunch and dinner. Air Canada spokesperson Angela Mah says the move is simply an extension of what the airline started in 2003 when it scrapped meals for short- and medium-haul flights. Mah says the company needs to compete with airlines such as WestJet, which has always charged for meals. There's another change that took effect on Air Canada flights on Tuesday. Passengers who want pillows will have to pay $2.

Just flew from Vancouver to Ottawa with Air Canada, 5 hr flight: no food (paid $5 for a sandwich), one free coffee, film not worth watching - lots of dull commercials, minimal leg room/space between seats, barely any space in the corridor. Frankly, the food policy is unbelievably bad, but the passenger seat space issue is even worse! I would not recommend Air Canada, but within the country there is often little choice.

Air Cda Pilot Group Lodges Labor Complaint At Agency
7 November 2005

TORONTO (Dow Jones)--A group of Air Canada pilots has lodged a complaint with the Canadian Industrial Relations Board after the airline agreed to ask a federal mediator to review the process that established a seniority list.

The group, comprising former Canadian Airline pilots, argues that Air Canada has breached the Canada Labour Code by allowing a mediator to open up an existing agreement.

Air Canada is the mainline division of ACE Aviation Holdings Inc. (ACE.B.T).

The salvo by the former Canadian Airline pilots is the latest in an ongoing internal dispute in the Air Canada Pilots' Association stemming from a 2003 seniority integration award.

The so-called Keller award determined a seniority ranking for the airline's pilots, but was widely seen by many as favoring former Canadian Airlines pilots over Air Canada pilots. The two airlines merged in 1999.

The dispute came to a head earlier this year when some original Air Canada pilots voted against an agreement that established wages and working conditions for new Boeing Co. (BA) planes in order to raise awareness of their unhappiness

The rejection forced the airline to cancel the US$6-billion order. It was revived last week, however, after a federal arbitrator ruled in favor of the original wage agreement.

Related Web Sites: http://www.aircanada.ca and http://www.formercanadianpilots.ca

Does anybody know what plane is used on the Delhi-Toronto sector?

Does anybody know what plane is used on the Delhi-Toronto sector?
Their schedule says 763.

Unions attack payout plan
Insist cash should cushion wage cuts CEO Milton hints at stepping down
Rick Westhead
Toronto Star
11 November 2005

Air Canada's shareholders have approved a divisive payout to the company's investors that may be worth as much as $300 million, a year after the carrier emerged from bankruptcy protection after pressuring unions to surrender $1.1 billion worth of annual wage and benefits concessions.

The big-buck payout, given the go-ahead yesterday by shareholders at Air Canada's annual meeting in Montreal, is being scorned by the carrier's unions. They argue the dividend is shortsighted and puts the interests of powerful Wall Street hedge funds, investment banks and Air Canada's management ahead of its rank-and-file employees.

"We are getting hosed," said Paul Lefebvre, an Ontario president for the International Association of Machinists and Aerospace Workers, which represents baggage handlers and other ramp workers.

"If avian flu hits the trail, or there's a terror attack, or business starts laying people off or Bush decides to start another war, it would be good to have that cash on hand," Lefebvre said. "We should be keeping that capital for a rainy day."

Instead, at the urging of Robert Milton, chief executive of parent company ACE Aviation Holdings Inc., Air Canada has decided to pay out the likes of New York hedge fund Cerberus Capital Management LP, Deutsche Bank AG and General Electric Co.'s financing division.

"Those companies basically bought Air Canada for pennies on the dollar," Lefebvre said. "Milton is beholden to them. He owes his livelihood to them, so there's no question he would go along with this."

Milton told the lightly attended meeting that the company's workers incurred relatively small pay cuts compared to other North American airlines. He also noted that any payout remains subject to a board decision, and said no timeline has been set for that.

Some industry analysts backed the airline's move.

Research Capital Corp. analyst Jacques Kavafian said the unions were off base with their criticism.

"The problem the unions had was the money wasn't going to them," Kavafian said. "Air Canada has $2.5 billion in cash on hand. For an airline of its size, with its prospects, $1 billion is a good number to keep for a rainy day."

Kavafian described the payout plan as a "good way to reward those companies who had invested in the company."

Air Canada has resisted the request from unions to use any extra money to close its pension deficit. In a recent securities filing, Air Canada said its board at a Sept. 13 meeting "concluded that the passing of a special resolution is in the best interests of ACE Aviation."

Several airline union members said the payout has set a negative tone for coming contract negotiations. Unions have the right to begin negotiations on new collective agreements in January, and can officially reopen those agreements June 30, said Pamela Sachs, an official with the Canadian Union of Public Employees, which represents Air Canada's 7,000 flight attendants.

"What this says is that the financial plan that they used to get concessions from us was way off," Sachs said. "We're going to be looking to get back the 13.5 per cent in concessions we gave up."

It's also possible that the payout could presage legal action, said Hugh O'Reilly, a lawyer for the Machinists.

Shareholder activist Bob Verdun denounced the resolution as merely a scheme "to push up share values to allow option holders to cash in."

Verdun said the money should go back to employees, or be re-invested in the company.

Milton responded that companies that treat shareholders well also do well for their employees.

Milton also told the meeting that ACE is forging ahead with plans to sell shares in its Jazz regional airline division, and in the aircraft maintenance division.

Milton, 45, head of Air Canada since 1999, also said yesterday that he might leave "sooner rather than later" after proving the company can compete.

"This long ago ceased to be much fun, so this is about proving that it'll work," said Milton.

WITH FILES FROM STAR WIRE SERVICES

Their schedule says 763.

I think they also use the A340.

Air Canada charging extra for meals

Beginning this week, passengers flying on Air Canada within North America in the lower-fare classes will have to pay for breakfast, lunch and dinner. Air Canada spokesperson Angela Mah says the move is simply an extension of what the airline started in 2003 when it scrapped meals for short- and medium-haul flights. Mah says the company needs to compete with airlines such as WestJet, which has always charged for meals. There's another change that took effect on Air Canada flights on Tuesday. Passengers who want pillows will have to pay $2.

Who cares, their food was terrible anyways.

^^I disagree.....the last 10 segments I've done with AC, the food was great......

Air Canada welcomes successful conclusion of Canada-U.S. Open Skies Agreement

MONTREAL, Nov. 11 /CNW Telbec/ - Air Canada today welcomed the successful conclusion of an Open Skies Agreement for Canada and the United States. The agreement was reached in Washington late on Thursday November 10, following discussions involving officials from the Canadian and U.S. Governments as well as representatives of Canadian and U.S. airlines and airports.

"We are pleased negotiations involving Canada and the U.S. on this important aviation agreement have resulted in such a successful conclusion," said Robert Milton, Chairman, President and Chief Executive Officer of Air Canada's parent company, ACE Aviation Holdings Inc. "Air Canada has long advocated the further liberalization of our shared skies so that we can better link our expanded North American network to our growing international network. In fact, this revitalized agreement allows us to enhance and capitalize on our cooperative arrangements with our Star Alliance partners, particularly on the transatlantic and transpacific markets.

"I commend Canada's Transport Minister Lapierre for his vision and his stewardship of this important agreement which will see tremendous benefits or consumers and airlines, as well as contribute to economies of both countries.

"This new agreement with Canada's largest trade and aviation partner will ensure the North American industry is in step with current international airline policies. It will create substantial benefits for consumers by generating more choice and will contribute to the long-term health and competitiveness of our North American industry."

Air Canada operates more non-stop flights between Canada and the U.S. than any other airline. Air Canada, Air Canada Jazz and its commercial partners operate more than 385 non-stop flights per day on 79 routes to and from 50 U.S. and 6 Canadian destinations. Air Canada extends its network within the United States even further with its Star Alliance partner, United Airlines. In 2005, an independent survey of more than 12 million international air travelers ranked Air Canada as the Best Airline in North America.

Air Canada pilots' list change revives row
Ex-Canadian Airlines flyers lose in revision Mediation effort aimed at assuring jet order
Rick Westhead
Toronto Star
15 November 2005

A pilots seniority list devised when Air Canada bought former rival Canadian Airlines International Ltd. five years ago has once again been altered, this time as part of an effort by the carrier to win union approval of an important order for jets.

In a report released yesterday, mediator Martin Teplitsky announced the latest changes to Air Canada's seniority list, which, according to one veteran pilot, favour so-called original Air Canada pilots and will likely mean that those who once flew for Canadian Airlines will fall perhaps several hundred places down Air Canada's seniority list.

Captain Rob McInnis, a former Canadian Airlines pilot, said the one-time Air Canada rivals "have lost a lot" thanks to Teplitsky's tentative changes.

McInnis, for instance, who was Number 120 on Air Canada's pilots seniority list, falls to Number 198, while pilots with less experience are more likely to fall further down the seniority ranks, he said.

Seniority is used to determine which pilots get first choice on routes, vacation time and even days off.

"We thought this was a done issue, but it just won't go away" McInnis said, adding his splinter group of about 1,000 pilots has asked the Canada Industrial Relations Board to reject Teplitsky's decision.

Air Canada was willing to reopen the controversial debate over seniority because it wanted the blessing of the Air Canada Pilots Association for a $6 billion (U.S.) order for 18 Boeing 777s and 14 Boeing 787 Dreamliners.

The union, which represents all of the airline's 3,100 pilots, narrowly rejected a labour pact to fly new aircraft because of lingering resentment over the seniority issue.

Many original Air Canada pilots, some of whom have gone so far as to start a group called the Red Pilots for Seniority Justice, have been upset over a seniority list developed by arbitrator Brian Keller. His list, developed in 2003, replaced rankings devised in 2001 by another arbitrator, Morton Mitchnick.

Keller's list went too far in favouring the one-time Canadian Airlines pilots, say some original Air Canada pilots.

A pilots association spokesperson wasn't available for comment.

"I recognize that no result will be completely satisfactory," Teplitsky wrote in his 15-page decision, acknowledging, "the rancour associated with (the dispute) appears to have intensified over time.

"For the former Canadian pilots, a date-of-hire list would be considered by them as the only correct result. However, the (board) ruled that a date-of hire-list was not appropriate. This ruling must be accepted. Equally, for the Red Pilots, this result is not what they would have hoped for."

The Red Pilots will benefit from Teplitsky's decision to eliminate a so-called discount that was applied by Keller and reduced the value of the seniority of the former Air Canada pilots.

But, the Red Pilots had sought more sweeping changes than Teplitsky was willing to agree to.

The former Canadian Airlines pilots boycotted Teplitsky's mediation process and had complained to the federal labour board that pilots association inappropriately demanded a new seniority list.

Air Canada offers buy-in-bulk savings of up to 70% with new Flight Passes
15 November 2005


Air Canada today launched four new Flight Passes offering buy-in-bulk savings for leisure travellers, with up to 70% off already discounted airfares for travel within Canada until March 31, 2006, and to popular sun destinations including Hawaii until September 30, 2006. The new Flight Passes are available for purchase today until December 30, 2005. To promote the new Flight Passes, Air Canada is offering Aeroplan members 2,500 Bonus Aeroplan Miles, in addition to one Mile for every $3 spent, plus mileage accumulation.

"Our newest Flight Passes, designed with leisure travellers in mind, raise the bar in buy-in-bulk savings for air fares," said Sean Menke, Executive Vice President and Chief Commercial Officer. "We plan on continuing to expand our range of innovative online products, based on the rapidly growing number of customers choosing our multi-trip pass products for the exceptional value they provide. Subscribing to air travel with online convenience underlines Air Canada's commitment to lead the way by putting control back in the hands of consumers."

Air Canada's four most recent Flight Passes offer additional savings for leisure travellers with flexible travel dates: a "Weekend Flight Pass" with savings up to 70% off Tango fares for travel on Saturdays and Sundays to points within Canada; a "Discounted Flight Pass to the Sun" with savings up to 60% off Tango Plus fares for travel on mid-week days from Eastern Canada to popular sun destinations; in addition to a "Flight Pass to the Sun - West" with savings up to 60% off Tango Plus fares for travel from Western Canada to popular sun destinations; and a "Flight Pass to Hawaii" with savings up to 35% off the carrier's already discounted excursion fares for travel from Western Canada to Hawaii.

Weekend Flight Pass

- For travel to all points in Canada served by Air Canada and Air Canada Jazz, eligible for electronic ticketing.
- Valid for travel on Saturdays and Sundays only, January 9 - March 31, 2006.
- Pre-purchase four flights for $796 ($199/flight), or eight flights for $1499 ($187/flight), plus GST (and QST for residents of Quebec).
- Complimentary online advance seat selection.
- Aeroplan mileage accumulation: 50% Non-status Miles, in addition to Bonus Miles and purchase incentives.

Discounted Flight Pass to the Sun

- For travel from Toronto, Montreal and Ottawa to Miami, Fort Lauderdale, Orlando, Tampa, West Palm Beach, Fort Myers, Phoenix and Las Vegas.
- Valid for travel on Tuesdays, Wednesday and Thursdays only, January 9 - September 30, 2006.
- Pre-purchase six flights for $1098 ($183/flight), plus GST.
- Aeroplan mileage accumulation: 100% Status Miles, in addition to Bonus Miles and purchase incentives.

Flight Pass to the Sun - West

- For travel from Vancouver, Victoria, Calgary, Edmonton, Regina, Saskatoon and Winnipeg to Phoenix, Los Angeles, San Diego, San Francisco and Las Vegas.
- Valid for all days of flights, January 9 - September 30, 2006.
- Pre-purchase six flights for $1434 ($239/flight), plus GST.
- Aeroplan mileage accumulation: 100% Status Miles, in addition to Bonus Miles and purchase incentives.
- Complements Air Canada's "Flight Pass to the Sun - East" valid from Toronto, Montreal and Ottawa to Miami, Fort Lauderdale, Orlando, Tampa, West Palm Beach, Fort Myers, Phoenix and Las Vegas.

Flight Pass to Hawaii

- For travel from Vancouver, Calgary and Edmonton to Honolulu, Maui and Kona.
- Valid for all days of flights, January 9 - September 30, 2006.
- Pre-purchase four flights for $1460 ($365/flight).
- Aeroplan mileage accumulation: 100% Status Miles, in addition to Bonus Miles and purchase incentives.

Air Canada's Flight Passes are available exclusively online at aircanada.com and through travel agents, for residents of Canada.

Burning plane fuels campaign
Union fights bid to cut attendants
Air France crash used to cite safety risk
Rick Westhead
Toronto Star
19 November 2005

The federal government's bid to allow Air Canada and other airlines to pare the number of on-board flight attendants would compromise passenger safety, according to a shocking and risky advertising campaign being rolled out by the union representing Air Canada's flight attendants.

One of the union's newspaper ads features a picture of passengers spilling out of the burning Air France jet. An accompanying caption reads: "Passenger Safety at Risk."

"A full crew of 10 highly trained and fast acting flight attendants saved everyone on Air France Flight 358 after it crashed in Toronto this summer," the ad says. "Even though flight attendants are safety professionals who save lives, Ottawa is poised to cut the required minimum number of flight attendants by up to 25 per cent.

"With fewer hands on deck, do you like these odds?"

Transport Canada spokesperson Lucie Vignola said the federal government is considering changing flight attendant requirements to bring Canada in line with other countries that belong to the International Civil Aviation Organization.

For instance, Vignola said, both the U.S. and France require one flight attendant for every 50 passengers.

"The union is just trying to keep jobs," she said.

But Jim Thompson, a spokesperson for the Canadian Union of Public Employees, which represents Air Canada's 6,700 flight attendants, said, "This is about the last line of defence for safety and security issues being cut by up to 25 per cent."

Currently, Canadian law requires airlines to have one flight attendant on board for every 40 passengers. Transport Canada is considering a move to change that ratio to one attendant for every 50 passengers, although the ratio differs for different types of aircraft.

On the 297-passenger Airbus 340, for instance - the plane used on Air France flight 358 - eight flight attendants, a one to 40 ratio, would be required because the wide-body plane has eight exits. But an Airbus A320, with a maximum 140 passengers, could have three flight attendants, down from the current minimum of four, a 25 per cent reduction, said Thompson.

Several advertising industry executives questioned CUPE's decision to publish the ads - particularly as Air Canada and other airlines enter the busy holiday travelling season.

"Why remind people about to buy a ticket that these horrible things can happen when you do fly?" said Randy Stein, a partner with Grip Ltd., a Toronto ad agency. "It's a curious decision."

Stein said while many passengers feel empathy for flight attendants, who "deal with planes full of cranky passengers," the ads could backfire by making passengers "feel manipulated."

For Air Canada, the country's largest carrier, the ads mark the latest sign of tension between management and labour. Air Canada is desperate to cut costs, and has gone so far as to strip paint and primer from one jet to make it lighter and save fuel.

Air Canada spokesperson Laura Cooke said that just because Transport Canada reduces staffing minimums, the carrier wouldn't necessarily reduce the number of on-board flight attendants. "It's really going to depend on the aircraft type and the route," she said, adding that the airline exceeds the regulator's requirements on some routes.

Vignola said any changes to the flight-attendant requirements wouldn't happen for months. "In no way is this imminent."

The ads are initially scheduled to run in The Hill Times, an Ottawa newspaper aimed at federal politicians and lobbyists.

CUPE may later advertise in mainstream daily newspapers and on the Internet, Thompson said.

CUPE's Thompson insisted the campaign is based on safety concerns. Transport Canada decides whether to cut flight attendant staffing requirements based on "theoretical paper exercises called risk analysis.

"What they should be doing is waiting for the Transportation Safety Board to finish its study of the Air France crash," Thompson said. "It's a real live example and we think there's a concrete link between the fact that there were 10 flight attendants on board and the survival of all the passengers and crew."

In a Nov. 9 memo circulated to Air Canada flight attendants, CUPE officials argues that the attendants "are safety and security professionals who save lives in the event of an evacuation or attempted terrorist attack."

The memo points out that there were 10 flight attendants on board the doomed Air France Airbus 340 for 297 passengers, which represented a one to 30 ratio, exceeding the French requirement. "Only eight flight attendants would be required on a Canadian carrier under the proposed Transport Canada rules on such wide body aircraft."

The issue of flight attendant staffing on Air Canada flights first surfaced in May, when the carrier and CUPE clashed over plans to cut the number of flight attendants on flights between Canada and Europe.

In a May 5 letter to the union obtained by the Toronto Star, Air Canada official Susan Welscheid said Air Canada would consider in coming months expanding the cost-cutting move to include other international routes, such as flights to Central and South America and Asia.

WestJet Reacts to New Open Skies Treaty
Corporate Press Release

CALGARY, ALBERTA--(CCNMatthews - Nov. 11, 2005) - WestJet (TSX:WJA) CEO Clive Beddoe commented today on the Federal Government's announcement that it has completed a new Open Skies Agreement with the United States.

"I think this is a good step forward for our industry and for consumers, though of course there is still much work to be done by both governments in order to ensure the Agreement is a success." said Beddoe. "I do, however, want to congratulate Transport Minister Lapierre for reaching this Agreement with the United States."

For the new Open Skies deal to reach its full potential for consumers and industry alike, the US and Canadian governments must ensure that a level playing field is established for all carriers, for example by providing fair and adequate access to American airports and airport facilities. During the negotiations, both countries have agreed they are willing to tackle access problems.

"Ensuring fair access is crucial to the ultimate success or failure of Open Skies. I certainly look forward to working with the Minister and the necessary government departments to do just that", said Beddoe.

Negotiated in Washington over the past week, the Agreement will take effect in September 2006 and will be subject to review three years after implementation. WestJet supports the September start date and subsequent review.

"This will provide an opportunity for all carriers to examine their route networks, and to develop and market new destinations for Canadian travelers," said Sean Durfy, Executive Vice President for Sales and Marketing at WestJet."It will also provide the opportunity to examine new strategic alliances with other carriers."

WestJet is Canada's leading low-cost airline offering scheduled service throughout its 35-city North American network. Named Canada's most respected corporation for customer service in 2005, WestJet pioneered low-cost high-value flying in Canada. With increased legroom and leather seats on its modern fleet of Boeing Next-Generation 737 aircraft, and live seatback television provided by Bell ExpressVu on its 737-700 fleet, WestJet strives to be the number one choice for travelers.

Here is how Air Canada is trying to save on fuel...

http://img107.imageshack.us/img107/8906/dsf8gn.jpg
Boeing 767-233


by removing all paint! :bash:

^^It is only test.....for now......................

Here is how Air Canada is trying to save on fuel...

http://img107.imageshack.us/img107/8906/dsf8gn.jpg
Boeing 767-233


by removing all paint! :bash:
That actually looks pretty good. Don't want it on all of the planes, just a few.

eck, that lack of paint looks worse than even AA's

Here is how Air Canada is trying to save on fuel...

http://img107.imageshack.us/img107/8906/dsf8gn.jpg
Boeing 767-233


by removing all paint! :bash:

Disgusting :puke:.

Not very handsome.

Anyone know if AC are planning on starting up their Copenhagen route again? They seem to come and go...

Not very handsome.

Anyone know if AC are planning on starting up their Copenhagen route again? They seem to come and go...

How about to this ;)

http://tinypic.com/f20wic.jpg

More AC (http://skyscrapercity.com/showthread.php?t=130729)

Yeah, I rember they flew with that plane into Copenhagen sometimes......

Air Canada to launch daily non-stop service between Montreal and Mexico City

MONTREAL, Nov. 22 /CNW Telbec/ - Air Canada today announced that it will introduce non-stop flights between Montreal and Mexico City. Beginning June 17, 2006, Air Canada will operate year-round daily non-stop service linking Canada's second largest city, and its extensive eastern Canada network, with the Mexican capital. Flights are conveniently timed to offer travellers a wide range of connecting flights in Mexico City to and from: Acapulco, Cancun, Guadalajara, Monterrey and Puerto Vallarta, and in Montreal to and from: Ottawa, Quebec City, Moncton and Halifax. Tickets are now available for purchase.

"The introduction of daily non-stop Air Canada flights between Montreal and Mexico City is great news for Montrealers and consumers in eastern Canada seeking value and convenience in air travel to Mexico, whether for business, vacation or visiting friends and family," said Ben Smith, Vice President, Planning. "We expect our new non-stop service beginning in the peak summer season for northbound travel to be equally popular for Mexicans. The addition of Montreal-Mexico City non-stop flights complements our year-round on-stop
service from Toronto." Air Canada also serves Cancun, Puerto Vallarta, Los Cabos and Ixtapa.

Air Canada's new Montreal-Mexico City non-stop service will be operated using 120-seat Airbus A319 aircraft offering a choice of Executive Class and Hospitality service.

WestJet latest to cut baggage allowance
26 November 2005

Lisa Schmidt Heading into the holiday season, WestJet Airlines Ltd. is cutting its baggage allowance, following the lead of Air Canada and other carriers trying to lighten planes to save fuel.

Passengers will still be allowed two pieces of checked luggage for free, but starting Dec. 3, the airline will restrict the number of additional bags to three from five. Charges for extra bags will rise $10 to $40 per piece.

Maximum weight per bag remains at 32 kilograms, but rates for overweight luggage will also rise.

"One of the main reasons is going to be the fuel costs," said spokeswoman Gillian Bentley. "By reducing the number of bags it reduces the overall weight on the planes."

Last month, Air Canada cut back on free baggage allowances on all flights and raised fees for overweight luggage and extra bags.

Under the new rules, passengers can check in two bags weighing up to 23 kilograms or one bag weighing up to 32 kilograms. That's down from two 32-kilogram bags or one 45-kilogram bag.

The move follows similar changes by U.S. carriers such as Northwest Airlines and Continental Airlines, which both dropped baggage allowance weights by 4.5 kilograms on luggage checked in on international flights.

"It really hasn't hit the public too much what those charges are going to be, but they are very big," said Beverly DeSantis, president of Uniglobe Bravo Travel. "It's understandable why they are doing it, I've seen people get on planes and it's ridiculous what they try to shove on there."

Travellers are getting used to optional extra charges, from paying for food on board to selecting seats, said another agent. But extra fees on airline tickets are still causing concerns.

"It's not that people haven't complained, it's just we haven't had as many complaints about that as we have about fuel surcharges," said Asha Makwana, co-owner of Farebuster Travel.

-- CanWest News Service

Why did Air Canada, Kill off Zip and Tango for.

Jetsgo had 99¢ deals all the time, but we know what happened there...

Tango is still here. If you look up Air Canada's fares, Tango is still the cheapest fare around.

High-flying WestJet morale gets put to the test
Distinct corporate culture will face strain from growth, slumping shares, lawsuit
BRENT JANG
25 November 2005
The Globe and Mail

TORONTO -- When WestJet Airlines Ltd. staff received their profit-sharing cheques yesterday, co-founder Donald Bell stayed upbeat about its vibrant corporate culture, one that is being stretched as the airline hits some rough patches.

The Calgary-based airline prides itself on its peppy and “egalitarian” outlook. It has carefully crafted a quirky environment where top executives self-deprecatingly dub themselves Big Shots and no one, not even Mr. Bell and chief executive officer Clive Beddoe, has an assigned parking spot.

But WestJet's highly touted culture has been facing headwinds over the past 20 months, including concerns about its rapid expansion, a slumping stock price and a bitter court battle against Air Canada over WestJet's alleged spying. WestJet denies any espionage.

“WestJet is at a critical point right now,” said Marc-David Seidel, a business professor at the University of British Columbia.

“Indoctrinating and reinforcing the corporate culture is an investment up front, but rapid growth is a threat to WestJet's culture. It's a risk point because the culture may not spread successfully with expansion,” Mr. Seidel said.

In the harsh financial light of day, WestJet's ability to motivate its non-unionized employees allows it to keep wages under control and keep unions out, Prof. Seidel said.

After nearly a decade of taking its much-ballyhooed corporate culture as a given, Mr. Bell has a new title as the airline's executive vice-president of culture and airports. “A good corporate culture drives productivity, drives customer service, on-time performance, efficiency and, ultimately, profits,” he said in an interview.

Mr. Bell and other executives say they welcome the challenge to keep WestJet's culture vibrant — an increasingly difficult task now that it has 4,900 employees, compared with 220 workers when it began flights in February, 1996.

Last year, the carrier started trans-border flights into the United States.

“Sure, maintaining culture is always tough, but it has been ingrained over the years with the people we hire,” said Sean Durfy, the airline's executive vice-president of marketing and sales.

Mr. Durfy said that more than 86 per cent of employees hold shares, a high participation rate that underscores staff closely identifying with the goals of management. And in recent years, the airline has won numerous awards as it ranks among the best companies to work for in Canada.

It's both the big and little incentives that make a difference to create WestJet's “empowered” work force as it seeks a competitive edge over the unions at Air Canada, said Isabelle Dostaler, director of the international aviation MBA program at Concordia University.

“There's a feel-good factor about the way WestJet does business and treats its employees,” she said, noting that WestJet benefits whenever workers pitch good ideas to save money and boost profit.

Industry observers are impressed with WestJet's culture, but they warn that the carrier faces a tall order in the years ahead motivating employees at the same level as in the past. Last May, for the first time in its history, WestJet skipped one of two profit-sharing cheques planned annually, as it posted losses from high fuel prices and fierce fare wars against Air Canada and now-defunct Jetsgo Corp.

WestJet's reliance on a rising share price to help compensate employees worked wonders in the past, but its stock has tumbled 40 per cent since early last year. Still, the airline's stock purchase program is one of the most generous in Canada, matching contributions dollar-for-dollar up to 20 per cent of an employee's gross salary.

Mellissa Faulknor, 29, and Frank Eigenbrood, 23, are two of the carrier's customer service agents, and they are quick to say that they thrive on the perky work environment, where kudos from colleagues and customers are common.

“I like the random acts of kindness,” Ms. Faulknor said during a break from her job at Toronto's Pearson International Airport.

Since Ms. Faulknor and Mr. Eigenbrood joined WestJet in mid-2003, they've also become shareholders.

They point out that even though WestJet stresses positive reinforcement, that doesn't mean employees get a free ride.

Slackers face “progressive discipline,” but even there, management is careful to portray its crackdown on individuals as “coaching” rather than criticism.

Seven pillars

1. Align the interests of employees with the company's. WestJet runs one of Canada's most generous employee stock purchase programs, matching contributions dollar-for-dollar. Workers are allowed to receive up to 20 per cent of their gross salary in WestJet shares.

2. Have a profit-sharing plan. WestJet aims to have two profit-sharing cheques for its staff every year, in May and in November. In yesterday's $5-million payout, cheques varied mostly between $500 and $1,500 for each worker.

3. Don't forget small rewards. Donald Bell, WestJet's executive vice-president of culture, and other managers often send handwritten notes to recognize top-performing employees. WestJet includes small rewards such as a movie pass or a $10 gift certificate.

4. Recognize happy and solemn occasions. WestJet executives sign congratulatory cards for weddings and births. There's cake every month to celebrate birthdays. It also sends flowers if an employee is in hospital or if there is a funeral for a family member.

5. Empower employees. WestJet says empowerment is more than a buzzword because it wants its front-line staff to decide whether to issue travel credits. The idea is that the goodwill generated by resolving a complaint will translate into repeat business.

6. Publicize praise. WestJet issues a monthly employee newsletter called Kudos Corner, containing a selection of 10 or so e-mails from passengers who give praise for good service. It also carries three or four internal kudos.

7. Hold “fireside chats.” WestJet has 4,900 employees, so to give them direct access to senior management, the airline tries to hold a meeting every week. Top executives exchange ideas with groups of fewer than 100 staff at a time.

ACE Aviation says to create Jazz Air Income Fund

TORONTO, Nov 28 (Reuters) - Air Canada's parent company ACE Aviation Holdings Inc. said on Monday it has filed a preliminary prospectus for an initial public offering of units of Jazz Air Income Fund.

Jazz, created in 2002 when Air Canada merged its regional carriers, will distribute net proceeds from the offering to ACE, which will use the funds for general corporate purposes.

The company said it has established C$165 million ($141 million) of senior secured syndicated credit facilities.

In September, ACE said it would delay its plan to spin off Jazz into an income trust after the Canadian government stopped providing advanced tax rulings on such trusts. The government last week said it would resume providing the tax rulings.

Jazz flies a fleet of 118 aircraft to 71 destinations in Canada and and United States.

Income trusts avoid some corporate tax because they redirect their cash flow to investors, who are taxed on that income.

Source : http://www.pbase.com/tonyosborne/heathrow

http://www.pbase.com/tonyosborne/image/39772367.jpg

I wish they added a bit more red to the fuselage

At least it looks better than the old livery :)

Does anybody know when the first plane from AC with the refurbished interior be in service?

West Jet has been the best airline I have flown with so far. It doesnt feel like a discount airline at all.

Did AC ever owned a Aerospatiale-BAC Concorde???

Did AC ever owned a Aerospatiale-BAC Concorde???

Air Canada was one of several airlines who had ordered the Concorde initially, the other airlines being American Airlines, Eastern Airlines, Japan Airlines, Lufthansa, Pan Am, Qantas, Sabena, TWA and United Airlines. However, only British Airways and Air France owned and operated the 13 production Concordes, with Singapore Airlines having half its livery painted on BA's G-BOAD Concorde for a while.

^^Thanks for the info:D:D

Air Canada Jazz to launch daily non-stop service between Edmonton and Los Angeles

EDMONTON, Dec. 5 /CNW Telbec/ - Air Canada today announced that it will launch daily non-stop flights to Los Angeles effective May 1, 2006. Flights will be operated by Air Canada Jazz with next-generation, made-in-Canada Bombardier CRJ-705 aircraft. Flights are timed to offer convenient, same-day connections for travellers to and from Grande Prairie and Fort McMurray.

Tickets for flights are now available for sale at aircanada.com or through
travel agents.

"We are delighted to offer the convenience of the only non-stop flights linking Edmonton with Los Angeles, one of the most popular destinations in the United States," said Ben Smith, Air Canada's vice president responsible for network planning at Air Canada and Jazz. "The addition of new jet aircraft to the Air Canada Jazz fleet allows us to pursue new market opportunities and deploy the right aircraft to meet travel demand with the best schedules and offer the lowest fares on an everyday basis."

AC8528 departs Edmonton at 15:40, arriving in Los Angeles at 18:02. AC8529 departs Los Angeles at 10:50, arriving back in Edmonton at 15:05.

The CRJ-705 aircraft feature all-leather seating and are configured in two classes of service with 10 window or aisle seats in Executive Class offering 37 inches of legroom, and 65 window or aisle seats in Hospitality Class offering an industry leading 34 inches of legroom. All seats will be equipped with Air Canada's new in-seat personal entertainment system. The Bombardier CRJ-705 aircraft has a cruising speed of 880 km/h and a range of more than 3,500 km with a total payload of 7,778 kg including a cargo payload of 700 kg. Air Canada Jazz will operate a fleet of 15 CRJ-705s by December 2005.

From Edmonton, Air Canada offers 49 daily scheduled non-stop flights to Toronto, Montreal, Ottawa, Winnipeg, Saskatoon, Regina, Fort McMurray, Grande Prairie, Calgary and Vancouver.

WestJet's November Load Factor Increases To 71.9%
6 December 2005

CALGARY (Dow Jones)--WestJet Airlines Ltd. (WJA.T) posted a 29.3% improvement in November traffic, with traffic rising to 604.2 million revenue passenger miles from 467.2 million a year earlier.

The airline said its load factor for the month rose to 71.9% from 58.5%.

"In November 2004, our load factor was low, due in part to a computer system problem involving our revenue management system, which was resolved at that time," the airline said.

WestJet said "it is still very gratifying to see these strong results for November which are clearly due to higher demand for our domestic and transborder services."

The airline said capacity rose 5.2% to 840.3 million available seat miles from 798.7 million a year earlier.

For the year to date, WestJet said traffic was up 28.1% to 7.22 billion revenue passenger miles, load factor rose to 74.2% from 69.5% and capacity rose 20.1% to 9.73 billion available seat miles.

The airline said that, though it recently implemented a fuel risk-management strategy, the high cost of jet fuel continues to pose a challenge for the airline industry.

Company Web Site: http://www.westjet.com

Air Canada's Mainline Fleet Nov. Traffic Up 5.5%
6 December 2005

MONTREAL (Dow Jones)--Air Canada, ACE Aviation Holdings Inc.'s (ACE.B.T) mainline fleet, reported a 5.5% increase in November traffic, to 2.878 billion revenue passenger miles from 2.727 billion a year earlier.

In a news release, the company said capacity rose 3.1%, to 3.767 billion available seat miles from 3.655 billion in November 2004. Load factor was 76.4% versus 74.6%.

The company said Jazz, ACE's regional subsidiary, flew 98.4% more revenue passenger miles last month than in November 2004. Capacity increased by 91.4%, resulting in a load factor of 69.3%, compared to 66.8% a year earlier.

North American traffic, on a combined basis for Air Canada and Jazz, rose 8.6%.

The company said that, in the year to date, the mainline fleet's traffic was up 6% and its capacity rose 2.4%. Load factor for the year to date was 77.7% for the mainline fleet.

WestJet Converts Rights And Purchase Options For 7 Boeing Next-Generation 737 Aircraft
7 December 2005

CALGARY (Dow Jones)--WestJet Airlines Ltd.'s (WJA.T) board has approved the purchase of four additional Boeing Next-Generation 737 aircraft by converting purchase options with Boeing Co. (BA) into a firm delivery.

Financial terms weren't disclosed./

In a press release, WestJet said the 737 aircraft are scheduled to be delivered in 2007. It also announced the exercise of purchase rights for an additional three 737 Next-Generation aircraft in 2008.

WestJet is a low-cost airline offering scheduled service throughout its 35-city North American network.

WestJet accused of being a spy '007 Project' stole information: AirCan
10 December 2005
The Globe and Mail

TORONTO -- Air Canada alleges that WestJet Airlines Ltd. ran an espionage campaign code-named the 007 Project to steal confidential data from the larger carrier's "evil empire," allowing WestJet to strategically launch flights to the United States.

In new court filings, Air Canada further alleges that WestJet's snooping was designed in part to thwart the Montreal-based carrier's emergence from bankruptcy protection.

Not only did WestJet spy on Air Canada and defunct Jetsgo Corp., but it also gained access to secret statistics at CanJet Airlines of Halifax, according to documents filed in the Ontario Superior Court.

Air Canada said the latest revelations came to light after court-appointed forensic auditors scrutinized hard drives seized from Calgary-based WestJet.

In April last year, Air Canada launched a $220-million lawsuit accusing WestJet of corporate espionage. WestJet denies any wrongdoing and none of the allegations has been proven in court.

Air Canada sought protection in April, 2003, under the Companies' Creditors Arrangement Act, and emerged from bankruptcy protection in September, 2004.

Benjamin Smith, Air Canada's vice-president of planning, said in an affidavit that WestJet "attempted to undermine" the CCAA process.

Smith attached 24 exhibits to his affidavit, including a copy of an e-mail exchange between WestJet co-founders Mark Hill and Clive Beddoe, WestJet's chairman and chief executive officer.

Hill said in an e-mail from his BlackBerry, dated Sept. 11, 2003, that WestJet obtained a list of Air Canada's 200 weakest routes. If WestJet were to leak such information, "AC would have some serious back-tracking and explaining to do to potential investors, and would further weaken their credibility in all quarters," Hill said.

Another e-mail written by Hill, WestJet's former vice-president of strategic planning who resigned from the airline in mid-2004, points to the "evil empire" database, referring to Air Canada's load factors, or the proportion of available seats filled.

Code words used in the subject fields of e-mails included "Schtuff" and "Wayne," to alert recipients that the topic would be the 007 Project.

"WestJet and Hill often used the term 'evil empire' to refer to" Air Canada, according to Smith's affidavit, dated Nov. 28.

Various e-mails show that Air Canada's confidential data was used by WestJet to help plan transborder flights to the United States from Canada, Smith said.

Air Canada and a subsidiary allege their smaller rival hacked into a confidential website for Air Canada employees and retirees.

Forensic auditors have determined that Hill "was analysing the plaintiff's confidential employee website information in order to assist WestJet in expanding its routes into the United States," Smith said.

Smith alleges WestJet gained access to confidential data from CanJet and Jetsgo, and that WestJet found it "both useful and valuable" to obtain Air Canada's "real-time, flight-specific" information.

Air Canada's flight attendants 'outraged'
Pilots' preference angers union Labour contract may be void, it says
Canadian Press
15 December 2005

The union that represents Air Canada's flight attendants is angry over what it says appears to be the airline's failure to live up to a disclosure agreement reached in May 2004 during tense labour negotiations.

In an open letter to Air Canada senior vice-president Rob Reid, union leader Pamela Sachs wrote that a Nov. 15, 2005, letter that he wrote to cabin personnel raises questions that may make the flight attendants' current contract void.

The Canadian Union of Public Employees is asserting Reid's letter shows the union wasn't informed about a provision for preferred seating on flights that the pilots union negotiated for its members at about the same time.

"We would never, absolutely never, have signed off on that agreement had that been brought to our attention," Sachs said yesterday in a telephone interview from Montreal.

"A pilot with six months of seniority with Air Canada supersedes a flight attendant with 35 years of seniority. And our members are frankly outraged."

Reid's letter suggests the pilots' perk was negotiated while the airline was under the Companies' Creditors Arrangement Act at time when the flight attendants should have seen all Air Canada's agreements with other unions, Sachs said.

"We would never have agreed to something that disadvantaged our members so (much)," Sachs said. "We would not have signed on the bottom line."

Montreal welcomes first two Embraer 190s
On Dec. 15, our first two Embraer 190s fins 301 and 302 arrived in Montreal from S Josdos Campos (Brazil). These two aircraft are the first to be delivered equipped with the new state-of-the art IFE system that will become standard throughout our fleet i.e. 8.9-inch-wide digital TVs with touch-screen controls featuring audio and video on-demand at every seat. The IFE system will be operational in January. Other amenities include roomy overhead bins and cabin interiors that offer plenty of head room, extra-wide aisles and Air Canada's new seating and cabin design. The E190s are configured to provide a choice of two classes of service with nine seats in Executive Class and 84 in Hospitality Class.

With these deliveries, Air Canada becomes the first North American airline to operate two different Embraer models ?we currently operate 14 Embraer 175s with delivery of one more expected in January 2006. We will have four 93-seater E190s delivered by the end of this year with final delivery of all 45 E190s on order scheduled to be completed by early 2008.

The addition of these two Embraer Jet types to our fleet will increase our operational flexibility by allowing us to tailor aircraft size to market demand, thereby giving Air Canada a strong competitive edge in the domestic and transborder market.

Air Canada lawsuit 'malicious': WestJet
Jason Kirby
17 December 2005
National Post

VANCOUVER - Clive Beddoe, CEO of WestJet Airline Ltd., spoke out yesterday about the corporate espionage lawsuit filed against the airline by rival Air Canada, calling it "malicious," while at the same time indicating the actions of some WestJet employees were "inappropriate."

Air Canada filed documents last week as part of its $220-million lawsuit that contained e-mails sent to senior WestJet executives, including Mr. Beddoe. The lawsuit claims the e-mails, which discuss a "007 project," are part of an alleged effort by WestJet to steal Air Canada's confidential information.

Mr. Beddoe, in Vancouver as part of a charity event to deliver a planeload of toys to sick children at a local hospital, initially declined to comment on the revelation of the e-mails or the allegations.

"All I can say is judge us by the integrity of the organization that we are, and not by the malicious ways in which we've been depicted by our competitors," he said.

Mr. Beddoe said the lawsuit, which has not been proven in court, has not hurt WestJet's public image, judging by the company's strong performance.

But he did say some employees betrayed the company's trust by taking things "too far."

"We're a company that believes in trusting people and I would always rather trust people than not trust people," he said. "Sometimes when you trust people, you get burned, and sometimes people make mistakes. That's just life, but it's not our corporate style."

He acknowledged the company is paying for those mistakes.

"When the odd person does something that is inappropriate, we're going to get slapped for it," he said.

WestJet has argued it did not break any laws by gathering data on its rivals.

Mr. Beddoe arrived from WestJet's Calgary head office on one of the last remaining planes from the company's original fleet of aircraft. Westjet has retired virtually all of its 737-200 series jets to replace them with newer, more fuel-efficient aircraft.

Mr. Beddoe said WestJet plans to grow the airline at a rate of six or seven new planes a year.

It is a popular belief among some analysts that WestJet will have a hard time repeating its past growth rates because there is less room to grow in Canada.

But Mr. Beddoe said the airline sees opportunity in both domestic and cross-border routes.

"The other guys have 20-odd flights a day from Vancouver to Toronto and we've got four or five," he said. "There's plenty of opportunity to add additional flights as we get new aircraft."

He said the company has a list of cross-border destinations it intends to fly to, but would not provide details, citing competitive reasons.

Air Canada inaugurates non-stop service to Santo Domingo, offers up to 20 weekly flights to Dominican Republic
MONTREAL, Dec. 17 /CNW Telbec/ - With the departure today of Air Canada
flight AC976 to Santo Domingo via Toronto, the airline increased its service
to as many as 17 flights per week to the Caribbean nation from cities across
Canada. The non-stop Santo Domingo service will operate three times weekly
from Toronto to the Dominican Republic capital during the winter and spring
holiday peaks and two flights weekly for the balance of the year.
"With the introduction of non-stop scheduled service to Santo Domingo,
one of the Caribbean's most popular destinations for leisure and business, Air
Canada becomes the only carrier to operate scheduled service between Canada
and Santo Domingo," said Ben Smith, Vice President, Network Planning, Air
Canada. "In addition to offering consumers more choice of air-only or Air
Canada Vacations package options, we are also offering our customers the
fastest elapsed travel time by almost two hours to Santo Domingo. Air Canada's
new service to Santo Domingo also gives business travelers and freight
forwarders direct access to this important market on a year-round basis."
Air Canada's new Santo Domingo flights operate three times weekly on
Tuesday, Thursday and Saturday. Air Canada flight AC976 leaves Toronto at
13:00, arriving in Santo Domingo at 18:05, and flight AC977 leaves Santo
Domingo at 19:05 arriving in Toronto at 22:40. The carrier operates the new
route using 120-seat Airbus A319 aircraft in a two-cabin configuration
offering a choice of Executive Class and Hospitality service.
In addition to the new service to Santo Domingo, Air Canada operates non-
stop flights to Puerto Plata and Punta Cana from cities across Canada:
Vancouver, Calgary, Winnipeg, Toronto, Montreal, Moncton and Halifax. Air
Canada customers may purchase air travel only or Air Canada Vacations' all-
inclusive holiday packages through travel agents in Canada.

Montréal-based Air Canada provides scheduled and charter air
transportation for passengers and cargo to more than 150 destinations on five
continents. Its subsidiary Air Canada Vacations, one of Canada's leading tour
operators, offers vacation packages including air transportation, hotel
accommodation, car rentals and cruises, to more than 90 destinations. Canada's
flag carrier is the 14th largest commercial airline in the world and serves
more than 29 million customers annually.

Air Canada inaugurates daily non-stop service to San Diego, offers up to 20 daily flights to California

VANCOUVER, Dec. 17 /CNW Telbec/ - With the departure today of Air Canada
flight AC 8420 to San Diego from Vancouver, the airline increased Air Canada's
service to up to 20 daily flights to California from cities across Canada. Air
Canada Jazz operates the new daily non-stop San Diego flights with next-
generation, made-in-Canada Bombardier CRJ-705 aircraft, featuring 10 Executive
Class and 65 Hospitality seats.
"We are delighted to introduce non-stop scheduled service to San Diego, a
key California destination for leisure and business," said Ben Smith, Air
Canada's vice president responsible for network planning at Air Canada and
Jazz. "The addition of new jet aircraft to the Air Canada Jazz fleet allows us
to pursue new market opportunities, deploy the right aircraft to meet travel
demand, and offer the best schedules with the lowest fares on an everyday
basis."
AC 8420 departs Vancouver at 08:15, arriving in San Diego at 11:15.
AC 8421 leaves San Diego at 11:50, arriving back in Vancouver at 14:50.
The CRJ-705 aircraft feature all-leather seating and are configured in
two classes of service with 10 window or aisle seats in Executive Class
offering 37 inches of legroom, and 65 window or aisle seats in Hospitality
service offering an industry leading 34 inches of legroom. All seats will be
equipped with Air Canada's new in-seat personal entertainment system. The
Bombardier CRJ-705 aircraft has a cruising speed of 880 km/h and a range of
more than 3,500 km with a total payload of 7,778 kg including a cargo payload
of 700 kg. Air Canada Jazz will operate a fleet of 15 CRJ-705s by
December 2005.

Air Canada operates more non-stop flights between Canada and the U.S.
than any other airline. Air Canada, Air Canada Jazz and its commercial
partners operate more than 385 non-stop daily flights on 79 routes to and from
50 U.S. and 6 Canadian destinations. Air Canada extends its network within the
United States even further with its Star Alliance partner, United Airlines. In
2005, an independent survey of more than 12 million international air
travellers ranked Air Canada as the Best Airline in North America.

Air Canada launches new routes from Calgary, inaugurates non-stop services to Orlando and Abbotsford
CALGARY, Dec. 17 /CNW Telbec/ - Air Canada today launched two new routes
serving Calgary with the inaugural of non-stop services to Orlando and
Abbotsford.
"The introduction of these new non-stop services is great news for
Calgarians who will now enjoy the convenience of direct flights linking
Calgary with Orlando, one of the most popular destinations in Florida, and
daily non-stop flights to Abbotsford, the fastest growing area in British
Columbia," said Ben Smith, Air Canada's vice president responsible for network
planning at Air Canada and Jazz. "The addition of new jet aircraft to the
Air Canada and Air Canada Jazz fleet allows us to pursue these new market
opportunities and deploy aircraft to meet travel demand with the best
schedules and offer the lowest fares on an everyday basis."
Air Canada's Calgary-Orlando seasonal flights offer convenient weekend
departures on Saturdays and Sundays, departing Calgary at 08:30, arriving in
Orlando at 15:15. Flights are operated using 120-seat Airbus A319 aircraft
offering a choice of Executive Class and Hospitality service.
Air Canada Jazz now operates three daily non-stop flights between Calgary
and Abbotsford with made-in-Canada Bombardier jet aircraft.
From Calgary, Air Canada and Air Canada Jazz offer 677 scheduled non-stop
flights weekly to 34 destinations across Canada, US, Europe, Mexico and the
Caribbean, more than any other carrier. Daily non-stop flights to Las Vegas
were launched in October, and the first Bombardier CRJ-705 in commercial
service was inaugurated in June from Calgary to Houston. In 2005, an
independent survey of more than 12 million international air travellers ranked
Air Canada as the Best Airline in North America.

Air Canada to launch daily non-stop service between Montreal and Denver

MONTREAL, Dec. 21 /CNW Telbec/ - Air Canada today announced the
introduction of non-stop flights between Montreal and Denver. Beginning
June 16, 2006, Air Canada will operate year-round daily non-stop service
creating an important and strategic link between two Star Alliance carriers'
hubs and their extensive networks. Flights are conveniently timed to offer
travellers a wide range of connecting flights in Montreal to and from: Ottawa,
Quebec City, Rouyn-Noranda, Sept-Iles, Moncton, Fredericton, Saint John NB,
Deer Lake, St. John's NF, Sydney NS, Halifax and Charlottetown, and on United
Airlines operated flights in Denver to and from: Phoenix, Portland, Salt Lake
City, and San Diego. Air Canada becomes the only airline to offer this direct
service cutting existing air travel time by approximately two hours. Tickets
are now available for purchase at aircanada.com or through travel agents.
"The introduction of daily non-stop Air Canada flights between Montreal
and Denver is great news for Montrealers and consumers in eastern Canada
seeking value and convenience in air travel to Denver, whether for business or
vacation," said Ben Smith, Vice President, Planning. "With arrival of new,
modern and fuel efficient aircraft in our North American fleet we are able to
offer on a codeshare basis with our Star Alliance partner United Airlines more
choice of connections to and from destinations in the Southwestern United
States."
Air Canada's new Montreal-Denver non-stop service will be operated using
its spacious 93-seat Embraer E190 jet with a choice of Executive Class and
Hospitality service, and Air Canada's new personal entertainment system that
is being introduced fleet-wide, and features 8.9-inch wide digital in-seat
monitors with touch-screen controls offering audio and video on demand
programming at every seat.

Montreal Denver Denver Montreal
AC1071 08:30 10:40 AC1072 11:20 16:50

Air Canada operates more non-stop flights between Canada and the U.S.
than any other airline. Air Canada, Air Canada Jazz and its commercial
partners operate more than 385 non-stop daily flights on 79 routes to and from
50 U.S. and 6 Canadian destinations. Air Canada extends its network within the
United States even further with its Star Alliance partner, United Airlines. In
2005, an independent survey of more than 12 million international air
travelers ranked Air Canada as the Best Airline in North America.

Air Canada welcomes its first Embraer 190 aircraft
22 December 2005


Air Canada welcomed the most recent addition to its North American fleet as its first Embraer 190 departed Ottawa for Orlando on its inaugural flight last night.

Air Canada becomes the first North American airline to operate two different Embraer E-Jet models, the E175 and the E190.

The new Embraer jets are outfitted with Air Canada's new personal entertainment system that is being introduced fleet-wide, and features 8.9-inch wide digital in-seat monitors with touch-screen controls offering audio and video on demand programming at every seat. Other amenities include Air Canada's new seating and cabin design with in-seat power within reach of every customer, no middle seats, spacious overhead bins and cabin interiors that offer plenty of head room with extra-wide aisles.

The 93-seat E190 aircraft is configured to provide a choice of two classes of service with 9 window or aisle seats in Executive Class offering 38 inches of legroom, and 84 window or aisle seats in Hospitality service offering 33 inches of legroom.

"The arrival of this new generation of jet to the Air Canada fleet allows us to offer superior comfort for our customers in North America," said Ben Smith, Vice President, Network Planning, Air Canada. "We will deploy Embraer's E190 state-of-the-art aircraft to pursue strategic market opportunities in Canada and in the Unites States while offering customers a premium travel experience with enhanced space, comfort and convenient schedules."

As additional aircraft join the fleet, the E190 will be used primarily in key Canada-U.S. transborder markets including Toronto-Boston, Toronto-Newark, Toronto-LaGuardia, Calgary-New York (JFK), Ottawa-Fort Lauderdale, Ottawa- Orlando, Montreal-Denver, as well as certain domestic routes such as Toronto- Kelowna, Toronto-St. John's, Montreal-Edmonton, and Montreal-Calgary. Air Canada currently operates its new 73-seat E175 aircraft on: Toronto-Washington D.C. Reagan National Airport, Toronto-Atlanta, Toronto-Boston, Toronto-Newark, Montreal-LaGuardia and Montreal-Chicago.

The E190 has a cruising speed of 830 km/h and a range of up to 4,260 km with a maximum payload of 12,720 kg. Air Canada has firm orders for 45 E190 aircraft with additional options for up to 60 additional E190 aircraft. By year-end there will be four E190s in service joining the 14 E175 already operated by Air Canada

33 inches of legroom....that is crazy

Air Canada comes off a strong year; expects more altitude in 2006
13:54:06 EST Dec 28, 2005
ALLAN SWIFT

MONTREAL (CP) - After its first full year since emerging from a humiliating 18 months of bankruptcy protection, Air Canada found itself with an embarrassing problem on its hands: $300 million.

Having a wad of cash is an anomaly in North American aviation - at least for the so-called full service carriers like Air Canada.

The Montreal-based airline distinguished itself among the continent's aviation industry for its strong balance sheet. It accumulated $361 million in net profits in the first nine months of 2005, while most other carriers have fallen into bankruptcy protection, teeter on the brink, or have just emerged.

That was achieved despite a year that continued to be tough for the industry as a whole, mainly as a result of soaring fuel prices, the second-largest cost for an airline.

Calgary-based WestJet Airlines (TSX:WJA) also posted strong profits in 2005, but Air Canada's discount rival has been a consistent money-maker anyway, thanks to its low cost base.

Besides churning out profits, Air Canada's parent company ACE Aviation Holding (TSX:ACE.B) raised $287.5 million when it sold 14.4 per cent of its customer loyalty program Aeroplan (TSX:AER.UN) in an initial public offering in June.

There are more spinoffs coming, to provide more cash for ACE and boost its stock values.

ACE announced Nov. 28 it will turn the Jazz regional carrier into an income trust.

This will be followed by an initial public offering for Air Canada Technical Services (ACTS), its maintenance arm that has captured third-party aircraft overhaul contracts.

"The year kicks off with the efforts on Jazz," Milton said in an interview.

"ACTS remains a focus which looks to be about a year away as it develops its own independent financial statements," he said, noting that Aeroplan's and Jazz's separate bookkeeping eased their spinoff.

"The other key focus obviously is Air Canada," Milton said. He pointed to new Embraer aircraft being added to the fleet and onboard amenities being installed such as seats that drop into beds for overseas flights and video screens on the back of every seat.

Milton even bragged that discount carriers like WestJet and Southwest will have to watch out for the mainline carriers coming out of bankruptcy with a lower cost base.

Karl Moore, professor of business strategy at McGill University, agreed that the cost difference between the two Canadian carriers has been cut dramatically.

Jazz will up the competition with its new Canadair and Embraer jets coming into service, and in addition, WestJet is starting to face problems typical to any growing company.

"WestJet is facing a more competitive Air Canada," Moore said; "but on the other hand they have a good culture and a good CEO in Clive Beddoe."

"Can they continue to maintain their culture in the face of a much bigger employee base? The Southwest (Airlines) example suggests you can."

Air Canada's surplus cash is something of an embarrassment because ACE shareowners voted to allow ACE to distribute the money to its investors.

The airline's 32,000 employees, who took pay cuts to help the airline get back on its feet, feel they are owed part of that money.

Paying the post-bankruptcy shareholders - concentrated in a few large institutions - also rubs salt in the wounds of thousands of original Air Canada investors who lost their shirt when the company sought court protection.

CEO Milton loves to crow about his airline's performance and he makes no apology that the shareholders should be rewarded.

He said airlines that treat their shareholders well also do well for employees.

Milton claims the North American industry has only one example - Southwest Airlines - where shareholders have done consistently well, and where "employees have the best existence in the industry at this stage."

"Every other example I could give you is one where shareholders have done badly and the employees have done disastrously."

Aside from more stock issues for ACE assets, there will be more changes in store in 2006 for Canadian aviation:

-Coming into effect in September, 2006, a new clause in the Open Skies Agreement will allow carriers from Canada and the United States to pick up people and goods in the other country and move them to third countries.

-The year will also see more court hearings into allegations of corporate espionage by WestJet and Air Canada against each other.

-WestJet announced it will complete in 2006 a new reservation system that will allow it to make alliances with other airlines.

-The International Air Transport Association predicts another difficult year for the world's airlines, with a return to improved profits only in 2007 following six years of heavy losses - depending on the price of fuel.

- This also may be the year Milton decides he wants a different challenge.

A fighter by nature, he fought off a takeover bid by Onex Corp., took over bankrupt Canadian Airlines, suffered through the effects of the 2001 terrorist attacks, and kept Air Canada going through 18 months of bankruptcy protection.

With all the challenges behind him, he told a news conference after the annual meeting in November: "This long ago ceased to be much fun."

"Sooner than later, I look forward to riding off into the sunset."

Good news

WestJet plans include customer perks, alliances with other airlines
CEO denies firm is morphing into a full-service carrier
26 December 2005
The Globe and Mail

WestJet Airlines Ltd. will introduce a reservation system that offers new perks for consumers next summer and start forming alliances with other carriers in the fall, says chief executive officer Clive Beddoe.

A new computer reservation network will allow WestJet to tailor fares and perks to target more passengers willing to pay extra. The strategy includes luring business travellers, pitting WestJet squarely against Air Canada in the quest for corporate passengers in the Toronto-Ottawa-Montreal triangle.

“It's a very large software system. It's a huge project. Our hope is that by the summer of 2006, we'll have it in place. We have been limited in the past from offering service upgrades or refundable tickets or multiple changes without fees,” Mr. Beddoe said in a year-end interview.

The 2006 project means that Calgary-based WestJet will look more like a full-service carrier as it flies away from its roots as a no-frills discount airline, analysts say.

But Mr. Beddoe played down concerns that WestJet is morphing into a full-service carrier that's similar to Calgary-based Canadian Airlines International Ltd., which struggled financially in the 1990s before being taken over by Air Canada in 2000.

“Some people worry that we're going to make the same mistakes that Canadian Airlines did, and I say, ‘No, we're not, because we have a much lower cost structure.' And it's not frills that we'll be adding. It's convenience,” Mr. Beddoe said.

The WestJet co-founder said he wants to give consumers more fare options and flexibility to make changes. For instance, travellers would be able to choose bundled goods and services by paying a fee in return for a sandwich, drink, advance seat selection, in-flight movie on a personal TV screen and the ability to rebook flights at reduced or no charge.

The changes will push WestJet's business model for fares toward Air Canada's system, which already bundles user-pay perks. However, WestJet will stick with its single-class seating system, compared with executive and economy classes at Air Canada.

Mr. Beddoe also said WestJet, which doesn't belong to any airline alliance, will be seeking partnerships beginning in the fall of 2006. Montreal-based Air Canada belongs to the Star Alliance while Canadian Airlines — before it merged with Air Canada — took part in the Oneworld grouping.

Mr. Beddoe declined to comment on whether WestJet would join Oneworld. But National Bank Financial Inc. analyst David ****** said he expects WestJet to seek alliances with several Oneworld members such as Cathay Pacific Airways Ltd., British Airways PLC and American Airlines Inc. or join the grouping as a “junior partner.”

WestJet needs to reach alliance deals to raise its load factor — the proportion of available seats filled.

In the first 11 months of this year, Air Canada had a load factor of 80.3 per cent, compared with 74.2 per cent at WestJet. But WestJet could fill more of its seats as it gains connecting travellers from small regional airlines in Canada and signs so-called “interline” pacts with foreign carriers no longer linked with Air Canada, analysts say.

Analysts also predict that the new reservation system will clear the way for WestJet to work more closely, perhaps in 2007, with low-cost carriers in the United States such as Southwest Airlines Co. and JetBlue Airways Corp.

WestJet currently has co-operation agreements with Japan Airlines and Air China.

“Air Canada gets a huge amount of traffic from its alliances and from its code-share partners. We get a nominal amount from Japan Airlines and Air China,” Mr. Beddoe acknowledged.

He said that by Jan. 6, WestJet will have retired its last Boeing 737-200 aircraft from its fleet. The carrier, which is phasing in newer Boeing models such as the 737-600, forecasts that it will have 64 planes in its fleet by the end of next year, up from the current 57 aircraft.

High fuel prices will continue to pose a challenge for WestJet, and the rivalry with Air Canada will stay intense, but the grounding of Jetsgo Corp. in March has been a welcome break for both remaining major carriers, Mr. Beddoe said.

On the issue of battling Air Canada in the courts, he said the larger airline's $220-million lawsuit — which alleges WestJet engaged in an elaborate spying campaign —isn't going away any time soon.

“I don't think it's coming to any resolution. It's continuing down this very slow and arduous path,” Mr. Beddoe said.

He said he isn't impressed by Air Canada's claims that it has bounced back smartly since emerging from bankruptcy protection in September, 2004.

Air Canada is benefiting from artificially low labour costs and aircraft leases, but that could change as workers who took wage cuts seek raises and plane lessors renew contracts, Mr. Beddoe said. “Air Canada beat up on its employees and aircraft lessors, but sooner or later, it's going to have to pay the piper.”

Air Canada simplifies fares to / from the United Kingdom
4 January 2006


Air Canada's simplified fares are now available for the first time for flights to and from London Heathrow and Manchester. To celebrate this move, Air Canada is offering special low fares to London Heathrow from Canada starting as low as $418 return until January 11, 2006, for travel between January 9-April 4, 2006 and April 15- May 18, 2006.

"The introduction of simplified fares for transatlantic flights to and from Air Canada's largest European gateway is great news for customers seeking value and clear choices," said Sean Menke, Executive Vice President and Chief Commercial Officer. "Air Canada is a leader in North America for simplifying fares and using web technology that puts control back in the hands of consumers. Expanding the benefits of transparent, value-based pricing to international destinations is the next logical step."

Consumers are choosing Air Canada's simplified fares at aircanada.com in increasing numbers due to instant access to the lowest available fares and the ability to select from a choice of simple, distinct fare types that each offers a bundle of value-added benefits. Air Canada's redesigned international fare structure for flights to and from London and Manchester greatly simplifies travel booking with just four fare categories: Tourist, Leisure, Latitude Plus and Executive First fare products that offer best-value one way and return travel:

Tourist

- Deep discounted round-trip fares
- Available for special promotions
- No advance purchase required; non-refundable
- Seat selection at the airport only
- No changes or stopovers
- Saturday night minimum stay; two month maximum stay
- No Aeroplan mileage accumulation
- Bonus of 500 Aeroplan Miles for booking on aircanada.com

Leisure

- Everyday discounted round-trip fares
- No advance purchase required; non-refundable
- Complimentary advance seat selection
- Change fee of $200, plus additional fare difference if applicable
- Just $100 for same-day changes at the airport, with no additional
charges for fare difference
- One stopover option available for $50
- Saturday minimum stay; 12 month maximum stay
- Aeroplan mileage accumulation: 100% Aeroplan Status Miles
- Bonus of 1,000 Aeroplan Miles for booking on aircanada.com

Latitude Plus

- Fully flexible one-way fares
- Complimentary unlimited changes any time
- Fully refundable; no change fee
- Complimentary advance seat selection
- Unlimited stopovers
- Eligible for Aeroplan upgrade to Executive First
- Aeroplan mileage accumulation: 100% Aeroplan Status Miles
- Bonus of 2,000 Aeroplan Miles for booking on aircanada.com

Executive First

- Fully flexible one-way fares
- Complimentary unlimited changes any time
- Fully refundable; no change fee
- Complimentary advance seat selection
- Priority check-in, priority baggage handling and priority boarding
- Seating in Executive First cabin
- Complimentary access to Maple Leaf Lounges
- Extra baggage allowance
- Aeroplan mileage accumulation: 150% Aeroplan Status Miles
- Bonus of 3,000 Aeroplan Miles for booking on aircanada.com

Air Canada offers more than 100 flights per week from seven cities across Canada to London Heathrow, in additional to seasonal summer services to Manchester.

Does anyone know if that means every route, including the St John's - Heathrow Link

^ Try booking a sample itinerary on AC's website to find out. I doubt that $418 return price will last very long.

WestJet business soars in busy 2005
James Stevenson
6 January 2006
The Toronto Star

CALGARY -- Discount air carrier WestJet Airlines Ltd. says it's well prepared for more expansion this year after ending 2005 on a strong note with a 15 per cent increase in passenger traffic in December.

WestJet said yesterday its revenue-passenger-miles, or the number of paid-for seats multiplied by the distance they flew, increased to 737.1 million - up from 641 million in December 2004.

For the full year of 2005, revenue-passenger-miles were up 26.8 per cent to 7.96 billion from 6.28 billion in the previous year.

"It is obvious from these results that WestJet's added capacity is being well absorbed in the marketplace as both our existing and new guests use our product," Sean Durfy, WestJet's executive vice-president of marketing and sales, said in a release.

Durfy said WestJet, Canada's second-largest airline behind Montreal-based Air Canada, is prepared to continue its aggressive growth plans this year with the addition of 12 more Boeing Next-Generation aircraft.

WestJet started flying regular scheduled routes to U.S. holiday destinations in 2004, but added its first overseas trips last month with flights to Honolulu and Maui.

WestJet's available-seat-miles - a key measure of capacity in the airline industry - grew 9.8 per cent in December to 942.2 million from 857.8 million in the previous year. For the full year, available-seat-miles grew by 19.1 per cent to 10.67 billion from 8.96 billion in the previous year.

The company's load factor, or proportion of seats filled, was 78.2 per cent compared to 74.7 per cent in December 2004. During the 12 months of 2005, WestJet's load factor was 74.6 per cent compared with 70 per cent during 2004.

Air Canada and its regional affiliate Jazz also had improved load factors in December. The mainline's load factor was 77.3 per cent, up from 75.2 per cent in December 2004, while Jazz's load factor rose to 69.7 per cent from 68.2 per cent.

Air Canada flew 3.4 billion revenue-passenger-miles in December, up 7.4 per cent from a year earlier. For the full year, revenue-passenger-miles were up 6.1 per cent to 44.2 billion at Air Canada.

Airline analyst Cameron Doerksen of Versant Partners in Montreal said WestJet will be well served by the retirement of all the older, fuel-guzzling aircraft this year.

A new reservations system, which has been in the works for more than three years, is also expected to increase revenues and lead to strategic partnerships with other carriers.

Air Canada loses bid to keep records secret: Court orders books opened in WestJet espionage lawsuit
Chris Sorensen
7 January 2006
National Post

Air Canada will have to open its books if it wants to proceed with a $220-million corporate espionage lawsuit against rival WestJet Airlines Ltd., an Ontario Superior Court judge has ruled.

Mr. Justice Ian Nordheimer earlier this week struck down an attempt by Air Canada's lawyers to vastly limit, or at least postpone, the disclosure of potentially sensitive documents about Air Canada's business.

WestJet argued the documents are needed to demonstrate Air Canada's claim that WestJet was able to compete more effectively on routes it shared with Air Canada because of information it is alleged to have stolen from a password-protected Web site.

Air Canada's lawyers, on the other hand, had tried to convince the court that WestJet was trying to gain further access into the inner workings of Air Canada's operations.

"In my view, it is an overstatement for Air Canada to assert that WestJet is seeking to 'examine in minute detail every aspect of Air Canada's operations,'" Judge Nordheimer wrote. "This is not, even at the outset, an unrestrained demand for an infinite number of documents."

Judge Nordheimer, nevertheless, did place some limitations on the quantity and type of documents Air Canada is required to produce. And, in a move that could raise more questions about the extent of WestJet's questionable behaviour, he ordered the Calgary-based carrier to produce documents relating to similar allegations of snooping on CanJet Airlines and the former Jetsgo.

Air Canada's suit argues that WestJet improperly gleaned confidential information -- namely load factor data, which tells an airline how well it is filling its planes -- by using the secret password of a former Air Canada employee to access an Air Canada employee Web site thousands of times between March, 2003, and March, 2004.

WestJet, on the other hand, has argued it did not break any laws by gathering data on its rivals.

Indeed, there's more than a hint of irony in last week's ruling since Air Canada will now likely need to make public much more information about its business in order to proceed with its suit.

For example, Judge Nordheimer ordered Air Canada to provide "all documentation" relating to a firm that Air Canada hired to investigate WestJet's alleged misdeeds. That presumably includes the decision to hire people to root through the garbage of Mark Hill, a WestJet co-founder and former executive who left the company in connection with the lawsuit.

As well, Air Canada is also ordered to provide documents relating to communications between several Air Canada executives, including Robert Milton, the CEO of parent company ACE Aviation Holdings Inc. and Montie Brewer, the CEO of Air Canada.

WestJet has already suffered the embarrassment of having internal communications made public through the courts. Last month, Air Canada submitted an affidavit by one of its executives that included several emails retrieved from WestJet's computer hard drives. The e-mails, some of which were copied to Clive Beddoe, WestJet's CEO, discussed a "007 project" and mused about undermining Air Canada's restructuring by leaking closely guarded information about its business to the media.

Air Canada Dec. Traffic Up 7.4%
5 January 2006

MONTREAL (Dow Jones)--Air Canada, ACE Aviation Holdings Inc.'s (ACE.B.T) mainline air carrier, posted a 7.4% increase in December traffic to 3.40 billion revenue passenger miles from a year earlier.

In a news release, the airline said its year-to-date traffic increased 6.1% to 44.18 billion revenue passenger miles.

It said its December capacity increased to 4.40 billion available seat miles from 4.21 billion a year earlier.

Year-to-date, capacity increased to 55.17 billion available seat miles.

It said its overall load factor was 77.3% in December compared with 75.2% a year ago. Year-to-date, load factor increased to 80.1% from 77.5% a year ago.

ACE Aviation's regional carrier, Jazz, saw December traffic rise 86.1% to 255 million revenue passenger miles and year-to-date traffic rise 48% to 2.49 billion revenue passenger miles compared with a year earlier.

It said Jazz's December capacity increased 82.1% to 366 million available seat miles and year-to-date capacity increased 33.9% to 3.50 billion available seat miles compared with a year ago.

Jazz's load factor increased to 69.7% in December from 68.2% a year ago and increased to 71.1% in the year to date from 64.3% last year.

Air Canada to introduce Toronto-Shanghai non-stop flights; continues expansion of service to China

MONTREAL, Jan. 9 /CNW Telbec/ - Air Canada today announced that effective
June 16, 2006 it will introduce non-stop service between Toronto and Shanghai.
Air Canada will operate three non-stop flights per week between Toronto and
China's largest city, complementing its Toronto-Beijing non-stop service
launched in June 2005, and its daily non-stop flights to both Shanghai and
Beijing from Vancouver. Air Canada also operates twice daily flights to
Hong Kong including non-stop service from Toronto.
"With the introduction of the only non-stop service to Shanghai,
Air Canada continues to expand its services to meet the needs of travellers
and freight forwarders in the fast growing China market," said Ben Smith, Vice
President, Network Planning. "Together with our non-stop Toronto-Beijing
service and daily non-stop flights to China via Vancouver, Air Canada is
improving access to China for customers throughout North and South America via
our main Toronto hub."
Air Canada will be the only carrier offering non-stop service between the
largest commercial cities of Canada and China. With an elapsed time of
14 hours 45 minutes westbound and 13 hours 40 minutes eastbound, Air Canada's
new Toronto-Shanghai service will save travellers more than 3 hours in each
direction compared to the Vancouver routing.
Air Canada will operate the new route using 286-seat A340-300 aircraft.
With a 10:15 departure from Toronto on Wednesday, Friday and Sunday arriving
in Shanghai at 13:00 the next day, flight AC071 is timed to offer convenient
morning connections from points throughout Air Canada's extensive global
network, particularly in eastern Canada, the United States and Latin America.
The eastbound flight, AC072, leaves Shanghai at 14:45 on Monday, Thursday and
Saturday and arrives in Toronto at 16:25 the same day, providing maximum
connecting options throughout the Americas.
With the addition of Toronto-Shanghai non-stop service, Air Canada will
offer customers up to 13 non-stop flights per day in each direction between
Canada and seven destinations in Asia. From its main hub in Toronto, the
carrier operates non-stop flights to Hong Kong, Tokyo, Beijing and Seoul, and
Delhi via Zurich. From its Asia Pacific gateway in Vancouver, Air Canada
serves Hong Kong, Shanghai, Beijing, Tokyo, Osaka, and Seoul with daily non-
stop flights.

Montréal-based Air Canada provides scheduled and charter air
transportation for passengers and cargo to more than 150 destinations on five
continents. Canada's flag carrier is the 14th largest commercial airline in
the world and serves more than 29 million customers annually. Air Canada is a
founding member of Star Alliance providing the world's most comprehensive air
transportation network.

Jazz IPO expected to net Ace Aviation $201-million
Bloomberg News
11 January 2006

ACE Aviation Holdings Inc., owner of Canada's largest airline, expects to raise as much as $201-million from an initial public offering of its Jazz regional carrier, the country's biggest income trust IPO in almost four months. ACE plans to sell 17.5 million income trust units for $10 each in the Jazz Air Income Fund, according to sale documents distributed to investors. Banks managing the sale have an option to sell another 2.6 million units after the transaction closes the week of Jan. 30. The Jazz units, which will be sold the week of Jan. 23, will make monthly payouts equal to 9.5% to 10.5% a year. That compares with the average dividend yield of 7.6% for the 71 members of the S&P/TSX Capped income Trust Index. "The higher interest rate than what we were expecting will make it even more attractive," said Karl Moore, a business professor at Montreal's McGill University who specializes in the airline industry.

"There's going to be a good response in the marketplace." The sale of as much as 20% of the Halifax, N.S.-based airline values the carrier at $1.13-billion, assuming the 9.5% payout yield, the documents said. Jazz will pay out 90% of its cash flow to investors.

Air Canada to introduce Toronto-Shanghai non-stop flights; continues expansion of service to China

MONTREAL, Jan. 9 /CNW Telbec/ - Air Canada today announced that effective
June 16, 2006 it will introduce non-stop service between Toronto and Shanghai.
Air Canada will operate three non-stop flights per week between Toronto and
China's largest city, complementing its Toronto-Beijing non-stop service
launched in June 2005, and its daily non-stop flights to both Shanghai and
Beijing from Vancouver. Air Canada also operates twice daily flights to
Hong Kong including non-stop service from Toronto.
"With the introduction of the only non-stop service to Shanghai,
Air Canada continues to expand its services to meet the needs of travellers
and freight forwarders in the fast growing China market," said Ben Smith, Vice
President, Network Planning. "Together with our non-stop Toronto-Beijing
service and daily non-stop flights to China via Vancouver, Air Canada is
improving access to China for customers throughout North and South America via
our main Toronto hub."
Air Canada will be the only carrier offering non-stop service between the
largest commercial cities of Canada and China. With an elapsed time of
14 hours 45 minutes westbound and 13 hours 40 minutes eastbound, Air Canada's
new Toronto-Shanghai service will save travellers more than 3 hours in each
direction compared to the Vancouver routing.
Air Canada will operate the new route using 286-seat A340-300 aircraft.
With a 10:15 departure from Toronto on Wednesday, Friday and Sunday arriving
in Shanghai at 13:00 the next day, flight AC071 is timed to offer convenient
morning connections from points throughout Air Canada's extensive global
network, particularly in eastern Canada, the United States and Latin America.
The eastbound flight, AC072, leaves Shanghai at 14:45 on Monday, Thursday and
Saturday and arrives in Toronto at 16:25 the same day, providing maximum
connecting options throughout the Americas.
With the addition of Toronto-Shanghai non-stop service, Air Canada will
offer customers up to 13 non-stop flights per day in each direction between
Canada and seven destinations in Asia. From its main hub in Toronto, the
carrier operates non-stop flights to Hong Kong, Tokyo, Beijing and Seoul, and
Delhi via Zurich. From its Asia Pacific gateway in Vancouver, Air Canada
serves Hong Kong, Shanghai, Beijing, Tokyo, Osaka, and Seoul with daily non-
stop flights.

Montréal-based Air Canada provides scheduled and charter air
transportation for passengers and cargo to more than 150 destinations on five
continents. Canada's flag carrier is the 14th largest commercial airline in
the world and serves more than 29 million customers annually. Air Canada is a
founding member of Star Alliance providing the world's most comprehensive air
transportation network.

^
Isan - really - are you blind?

READ THIS ARTICLE BEFORE YOU POST YOUR OWN!!!
Air Canada to introduce Toronto-Shanghai non-stop flights; continues expansion of service to China

MONTREAL, Jan. 9 /CNW Telbec/ - Air Canada today announced that effective
June 16, 2006 it will introduce non-stop service between Toronto and Shanghai.
Air Canada will operate three non-stop flights per week between Toronto and
China's largest city, complementing its Toronto-Beijing non-stop service
launched in June 2005, and its daily non-stop flights to both Shanghai and
Beijing from Vancouver. Air Canada also operates twice daily flights to
Hong Kong including non-stop service from Toronto.
"With the introduction of the only non-stop service to Shanghai,
Air Canada continues to expand its services to meet the needs of travellers
and freight forwarders in the fast growing China market," said Ben Smith, Vice
President, Network Planning. "Together with our non-stop Toronto-Beijing
service and daily non-stop flights to China via Vancouver, Air Canada is
improving access to China for customers throughout North and South America via
our main Toronto hub."
Air Canada will be the only carrier offering non-stop service between the
largest commercial cities of Canada and China. With an elapsed time of
14 hours 45 minutes westbound and 13 hours 40 minutes eastbound, Air Canada's
new Toronto-Shanghai service will save travellers more than 3 hours in each
direction compared to the Vancouver routing.
Air Canada will operate the new route using 286-seat A340-300 aircraft.
With a 10:15 departure from Toronto on Wednesday, Friday and Sunday arriving
in Shanghai at 13:00 the next day, flight AC071 is timed to offer convenient
morning connections from points throughout Air Canada's extensive global
network, particularly in eastern Canada, the United States and Latin America.
The eastbound flight, AC072, leaves Shanghai at 14:45 on Monday, Thursday and
Saturday and arrives in Toronto at 16:25 the same day, providing maximum
connecting options throughout the Americas.
With the addition of Toronto-Shanghai non-stop service, Air Canada will
offer customers up to 13 non-stop flights per day in each direction between
Canada and seven destinations in Asia. From its main hub in Toronto, the
carrier operates non-stop flights to Hong Kong, Tokyo, Beijing and Seoul, and
Delhi via Zurich. From its Asia Pacific gateway in Vancouver, Air Canada
serves Hong Kong, Shanghai, Beijing, Tokyo, Osaka, and Seoul with daily non-
stop flights.

Montréal-based Air Canada provides scheduled and charter air
transportation for passengers and cargo to more than 150 destinations on five
continents. Canada's flag carrier is the 14th largest commercial airline in
the world and serves more than 29 million customers annually. Air Canada is a
founding member of Star Alliance providing the world's most comprehensive air
transportation network.

^^No need to repost the article...just say that it was posted before

ACE Aviation Sees Strong Interest For Jazz IPO
By Monica Gutschi
16 January 2006

TORONTO (Dow Jones)--Investors have snapped up units of Jazz Air Income Fund, buying the entire initial public offering before company officials even began their road show.

ACE Aviation Holdings Inc. (ACE.B.T) had hoped to raise up to C$201 million by selling up to a 20% stake in its regional carrier. It offered 17.5 million units of the Jazz Air at C$10 each, and gave banks managing the sale the option to buy an additional 2.6 million once the offer closes Jan. 30.

Market sources say the offer was well-received by both retail and institutional investors, especially following the success of Aeroplan Income Fund (AER.UN.T) last year.

"It sold out pretty quick," said Harry Levant, an independent trust analyst with IncomeTrustResearch.com. "I think they timed it pretty well."

The Jazz IPO is the first large income trust to hit the market since September, when the Canadian government suspended advance tax rulings on income trusts amid a review of the investment vehicles.

The Jazz IPO was to have been launched that month, but ACE Aviation Chairman Robert Milton suspended the offering until there was greater clarity on the outlook for income trusts. Once the Canadian government announced it wouldn't tax trusts, the Jazz IPO was among the first out of the gate.

Jazz officials began their road show Jan. 10 in Montreal, and pricing on the IPO is expected Jan. 23.

Market sources say the offer was sold out within minutes given the expected cash yield of 9.5% to 10.5%, and the track record provided by Aeroplan. Those factors "would make it very attractive," said a market source.

Montreal-based ACE Aviation sold a 14.5% stake in its Aeroplan frequent-flyer program for C$287.5 million through an IPO last June. The units have since risen about 30% in addition to the monthly distribution.

That IPO had been marketed with an expected yield of 7.5% to 8.5% but in response to strong investor demand, settled at the bottom end of the range. Observers say some investors were left with a bad taste in their mouths when ACE lowered the Aeroplan yield rather than raise the size of the issue. Levant said that may have reduced institutional demand for the Jazz issue, in addition to some investors' trepidation about the feasibility of an airline fitting the income-trust profile.

Income trusts pay no corporate taxes; rather, they channel the bulk of their cash to unitholders in the form of monthly distributions. The investment vehicle primarily suits mature and stable industries.

The National Post newspaper carried a column Monday warning against relying on the Jazz units as a "dependable source" of monthly income.

But Levant said that ACE Aviation, the parent of Air Canada which emerged from bankruptcy protection in September 2004, has had a "clean start" amid strong industry conditions.

And an industry source said Jazz is less exposed to the traditional volatility of the airline sector, as it has a Capacity Purchase Agreement with Air Canada which guarantees a minimum number of flight hours. Jazz provides about 96% of Air Canada's regional airline capacity.

ACE Aviation is also expected to spin off a stake in its maintenance division later this year as part of an ongoing program to obtain value from its business units.

Company Web Site: http://www.flyjazz.ca

Jazz Air Drops Yield For IPO
Demand Seen Strong
By Andy Georgiades and Ben Dummett
20 January 2006

TORONTO (Dow Jones)--Jazz Air Income Fund has dropped the expected yield of its initial public offering, confirming market talk of strong demand for the trust units.

According to a term sheet dated Jan. 20, the expected yield range is now 8.75%-9.50%, down from the previous range of 9.5%-10.5%.

"That's a substantial drop," said one institutional investor. "It's a big indicator of demand."

The size of the offering has also been increased. The fund is offering about 22.5 million units at C$10 each, for proceeds of C$225 million, not counting an over-allotment option granted to the underwriters representing 15% of the offering, the term sheet says. Originally, the company planned to raise C$175 million from the sale of 17.5 million units, excluding the over-allotment option.

Pricing is expected on Jan. 24, with closing on Feb. 2.

ACE Aviation Holdings Inc. (ACE.B.T), operator of Canada's largest airline, Air Canada, will hold about 77%-82% of the outstanding units of Jazz, a regional air carrier, upon closing.

Fluffy can't fly Air Canada this summer, airline rules
Pet travel ban bid to bolster efficiency
CanWest News Service
21 January 2006
Calgary Herald

Pet owners planning to fly Max, Simba or Sadie across Canada this summer can forget about using the country's largest passenger airline after Air Canada announced it has imposed a pet travel blackout between June 20 and Sept. 10.

The ban on carrying animals as checked baggage follows a similar blackout used by Air Canada and WestJet during the recent Christmas holiday period. WestJet has no plans to restrict pet travel this summer.

Air Canada officials say the ban is needed to keep costs down and make the airline as efficient as possible during peak travel periods when it faces huge demands on its cargo space.

"It may not be a popular decision, but it's the responsible thing to do," said airline representative Angela Mah.

She said animals travelling in a plane's cargo hold require a certain amount of oxygen, and only so much luggage can be carried to ensure the air circulates properly.

"The luggage restriction could inconvenience other passengers because we could be forced to off-load luggage to accommodate the oxygen requirement," Mah said.

Small animals that meet size and weight requirements can travel in the cabin with their owners, providing they stay in a soft-sided carry-on that can slide under a seat. Mah said owners of larger pets can still fly them across Canada this summer by using Air Canada Cargo, a freight service that provides a specialized live animal travel program.

She said with record-high fuel costs recently, it was critical for the airline to review all its procedures and become as efficient as possible.

"Customers keep telling us that they want low fares," Mah said.

"In order for us to continue doing that, we have to streamline our operations and continue to reduce costs."

WestJet representative Gillian Bentley said the airline has imposed a Christmas holiday pet travel ban for the past seven years, but feels no need to introduce one this summer.

"We don't think it's required because we don't see the same volume of extra baggage handled at that time of year," she said.

Air Canada files to fly Los Angeles-Sydney non-stop

MONTREAL, Jan. 25 /CNW Telbec/ - Air Canada today announced that as a
result of new market opportunities presented by the recently expanded Open
Skies Agreement for Canada and the United States, the airline will apply to
Canadian and Australian authorities to commence daily Toronto-Los Angeles-
Sydney service. Flights would commence during the first half of 2007 with the
delivery of Air Canada's new Boeing 777 fleet featuring industry-leading
lie-flat suites in the Executive First cabin and personal entertainment
systems at each customer's seat throughout the aircraft. Air Canada already
operates between the U.S. and Australia on its Vancouver-Honolulu-Sydney
service using existing route authorities.
With an elapsed westbound time of 21 hours and 15 minutes, Air Canada's
Toronto-Sydney flights via Los Angeles would offer the fastest elapsed time of
any airline from eastern Canada to Australia, shaving three and a half hours
off current Air Canada routings and also offering one-stop service from all
business markets across Canada. The daily flights would serve Canadian,
American and Australian consumers as well as freight forwarders, seeking
convenient and competitive air transportation between Canada and Australia,
the United States and Australia, and Canada and the United States. Air Canada
plans to work with its Star Alliance partners, Air New Zealand, United
Airlines and US Airways, through schedule coordination and codeshare services
to offer customers increased choice and convenience.
"The recently concluded Open Skies Agreement for Canada and the United
States opens new opportunities for Air Canada to enhance service for consumers
and business in Canada, the United States and international markets, such as
Australia," said Ben Smith, Vice President, Network Planning. "We look forward
to working with Canadian and Australian authorities to derive maximum benefits
for our customers in all three countries. Air Canada has long advocated the
further liberalization of our shared skies so that we can better link our
expanded North American network to our growing international network, and
further capitalize on our cooperative agreements with our commercial partners.
In addition to offering all our customers faster access to and from Australia,
same plane service from our main hub in Toronto will raise the bar in premium
in-flight comfort using our new 777 fleet."
The Toronto-originating flights would be timed to offer convenient
connection possibilities in Los Angeles to and from Montreal, Edmonton,
Calgary and Vancouver, as well as to and from points throughout the United
States via Los Angeles on flights operated by Air Canada's Star Alliance
partners, United Airlines and US Airways.
An Open Skies Agreement for Canada and the United States was concluded
November 10, 2005. The agreement comes into effect September 2006. In addition
to providing for more choice and competitive pricing for consumers, the
agreement allows for carriers of each country to carry passengers via the
other country to third countries, referred to as "fifth freedom" rights, such
as Air Canada proposing to serve Australia via the United States.

That's a awesome capture of the trans-pacific route by AC!! Take that SIA!

Air Canada flight attendants score victory in wage fight
Tracey Tyler
Toronto Star
27 January 2006

Air Canada flight attendants won a crucial victory yesterday in a battle that began 15 years ago, with a complaint that Canada's largest airline is discriminating against them by paying them differently than pilots and mechanics.

In a 7-0 decision, the Supreme Court of Canada said the salaries and working conditions of flight attendants, who are mostly women, can be compared with those of pilots and mechanics, who are mostly men, because all three groups work in the same "establishment."

Air Canada argued they did not work in the same establishment because they were governed by separate collective agreements. If the airline's argument was accepted, it would have prevented the case from going forward.

The case now returns to the Canadian Human Rights Commission for an investigation into the complaint in what is expected to be a lengthy hearing.

Yesterday's decision appears to settle what the court called a preliminary but "important" question in all pay equity cases and has implications for all employees working for federally regulated companies, including banks, Crown corporations, interprovincial trucking companies, VIA Rail, the federal public service and national museums.

The flight attendants brought their complaint under the Canadian Human Rights Code, which governs federal employers. Other companies are governed by different legislation and it is unclear how yesterday's ruling affects them.

If the court had agreed with Air Canada, it would have created "a significant stumbling block" for other groups of female workers who believe they are being illegally underpaid, said Douglas Wray, a lawyer representing the Canadian Union of Public Employees, which filed the complaint for flight attendants.

The Canadian Human Rights Act says employers are guilty of discrimination if men and women are paid differently for performing work of equal value in the same establishment.

Under the commission's guidelines, those working in an establishment include employees covered by a common personnel and wage policy.

Air Canada argued that flight attendants, pilots and mechanics are not governed by a common personnel and wage policy because they belong to distinct bargaining units covered by separate collective agreements.

As a result, the flight attendants can't be compared to the two male-dominated groups.

In essence, Air Canada argued that collective agreements are "the defining source" of personnel and wage policies, the court said yesterday. That approach would turn collective bargaining into a tool for entrenching discrimination, the court said.

In 1998, a panel of the Canadian Human Rights Tribunal agreed with Air Canada's position, which effectively put a stop to the flight attendants' case. The Federal Court of Canada later agreed with the tribunal's decision, but the company was handed a defeat when that finding was overturned by the Federal Court of Appeal. Air Canada appealed that finding to the Supreme Court.

Air Canada Plans Qantas Challenge On Los Angeles Route
27 January 2006

CANBERRA, Jan 27, 2006 (Dow Jones) -- Air Canada (ACNA.YY) plans to challenge Australia's Qantas Airways Ltd. (QAN.AU) between Sydney and Los Angeles, the lucrative route also coveted by Singapore Airlines Ltd. (S55.SG).

Air Canada said it will ask the Australian and Canadian authorities for the rights to offer daily Toronto-Los Angeles-Sydney flights using long-range Boeing 777 aircraft during the first half of 2007.

Despite Singapore Airlines seeking access to the route for nearly a decade, only Qantas and UAL Corp.'s (UALAQ) United Airlines are authorized to fly the trans-Pacific route.

The Australian government is conducting a review of its aviation policy, including whether to allow Singapore Airlines access to the route dominated by Qantas.

Singapore Airlines wants permission from Canberra to pick up passengers in Sydney or Melbourne and then fly to the U.S. West Coast, as it seeks to grow earnings amid strong competition and soaring fuel costs.

Using its current rights, Air Canada flies Sydney-San Francisco-Toronto and Sydney-Hawaii-Toronto, according to a spokeswoman for Australian Transport Minister Warren Truss.

"The recently concluded Open Skies Agreement for Canada and the United States opens new opportunities for Air Canada to enhance service for consumers and business in Canada, the United States and international markets, such as Australia," Air Canada Vice President Network Planning Ben Smith said in a statement.

Australia is yet to receive an application for air rights from Air Canada, Truss' spokeswoman said Friday.

"If and when an application comes in we'll look at it but at this stage it's not going to have an effect on our aviation review," she said.

WestJet drops San Francisco route
CanWest News Service
25 January 2006

CALGARY - WestJet Airlines Ltd. dropped another U.S. route this month, cutting San Francisco from its network after the route failed to attract enough business.

Flights to San Francisco -- one of the first planks in WestJet's U.S. expansion launched in the fall of 2004 -- ended Jan. 9, an airline spokeswoman confirmed Tuesday.

"It was not proving to be a profitable route," said Gillian Bentley, noting low interest from U.S. travellers and increased competition from other carriers.

The change follows other cuts in WestJet's aggressive expansion into the U.S., where it flies to mostly sunspots and leisure destinations. The airline previously cut its Toronto-Los Angeles route due to poor ticket sales, and pulled out of New York altogether after having difficulty getting additional time slots to compete with other carriers.

The airline has also said it's struggling to attract U.S. travellers, with traffic of Canadian origin representing over 97 per cent of the passengers on transborder flights. Still, the airline continues to add new destinations, including Las Vegas and Fort Myers, Fla., last fall, and Hawaii in December, its first overseas routes.

Air Canada plane to Vancouver diverted to Calgary for check on nose wheel
27 January 2006
The Canadian Press

REGINA (CP) _ Fire crews and ambulances were on standby at Regina's airport Friday morning after the flight crew of an Air Canada jet reported a problem with the plane's nose wheel.

Officials decided Jazz flight 8571 from Regina to Vancouver would be diverted to Calgary, where the company has a maintenance facility, said airline spokeswoman Debra Williams.

The plane landed safely in Calgary and the 39 passengers moved to a different plane and continued to Vancouver.

The maintenance staff is investigating to see if there was an actual problem with the nose wheel, said Williams.

There were only momentary delays to other flights because of the incident, said Regina airport authority Rob Slinger.

Air Canada move gives Embraer leg up
By BARRIE MCKENNA
Tuesday, January 31, 2006 Posted at 8:57 PM EST

From Wednesday's Globe and Mail

Bombardier Inc.'s bold move into 100-seater jets was probably doomed the day Air Canada — its most loyal customer — opted to buy similar planes from archrival Embraer SA of Brazil.

The purchase last year by Air Canada of dozens of 70- and 90-seat aircraft positions Embraer to be the Montreal-based airline's preferred supplier of larger regional jets.

Air Canada chose Embraer because its plane offered a wider fuselage, the potential to put in more than 100 seats and a larger business class cabin, shunning Bombardier's competing 90-seat aircraft, the CRJ 900.

Now, analysts said, Embraer is in an ideal position to snatch the market for 100-seat planes — if it ever takes off.

“This market has been the next big thing for some time,” said aircraft analyst Richard Aboulafia of Teal Group Corp. in Fairfax, Va.

Most of the action these days is in 70-seat jets, and in that market Bombardier is doing reasonably well, Mr. Aboulafia said.

But Embraer is dominating the still nascent market for larger planes. It has 440 firm orders for its so-called E-Jets, which range in size from 70 to 110 seats, plus options for another 362 planes. The largest of its aircraft offerings — the E190 — seats up to 110 people.

“They sized it very intelligently,” Mr. Aboulafia said.

The major customers for the Embraer E190 are Air Canada, which has ordered 45, and JetBlue Airways Corp. of the United States, which has ordered 100. Embraer has just begun delivering those.

“We believe this market has a lot of potential,” said an Embraer official, who declined to be named.

Bombardier, by comparison, has sold 64 of its 75-seat CRJ 705s and 20 of its 90-seat CRJ 900s.

The dilemma for Embraer and Bombardier is that as they build bigger planes they begin to move onto turf dominated by Airbus SAS and Boeing Co. The Boeing 737 and the Airbus A318 come in 120-seat models, and both companies can crank out more with relatively little effort, according to Mr. Aboulafia.

That has made it particularly tough for Bombardier to justify the massive investment needed to launch the C Series.

Mr. Aboulafia said there's always been a gap in the market for 100-seat planes. But companies that have tried in the past to fill the need have failed miserably. He pointed out that Fokker of the Netherlands went bankrupt trying and BAE of Britain also struggled.

“There shouldn't be a dead zone, but there is,” he said. “Companies have gone bankrupt trying to fill it.”

Even as it put its long planned C Series on hold Tuesday, Bombardier insisted the market for jets carrying 100 to 135 people remains highly promising. Bombardier has estimated that airlines will need as many as 6,000 of those planes over the next two decades.

Embraer is similarly optimistic about the market for 90- to 120-seat jets. It has forecast airlines will buy as many as 3,000 of the planes.

Air Canada launches new flight passes to simplify travel for businesses of all sizes
1 February 2006


Air Canada is expanding its line of innovative, multi-trip pass products to enable companies, ranging in size from small businesses to large corporations, to better manage travel while simplifying the booking process for employees.

The 'Flight Pass for Small Business' is tailored for use by small-to-medium sized firms and contains 30 flight credits that up to eight different employees can use over a three month period.

For large corporations, Air Canada has introduced the 'Corporate Pass' offered exclusively to its best corporate clients on a negotiated basis. Each 'Corporate Pass' can be used by up to 300 employees over a three month period. To suit a corporation's travel needs, an unlimited amount of one way trip credits for travel within various geographic zones in Canada and between Canada - USA may be purchased, simplifying the management of travel costs.

'Flight Pass for Small Business' and 'Corporate Pass' are available in two fare options, Tango Plus, Air Canada's best value fare, or the Latitude fare, for maximum flexibility. Regardless of fare type, Aeroplan members earn 100% Air Canada Status Miles. Travel must be on e-ticket available flights operated by Air Canada and Air Canada Jazz flights.

Convenient online access through the customer's personalized Flight Pass provides a quick, easy way to book travel and make changes, as well as enabling the corporation or travel agent to book, track and manage all user activity

ACE Aviation completes Jazz Income Fund offering

MONTREAL, Feb 2 (Reuters) - Air Canada parent ACE Aviation Holdings Inc. said on Thursday that Jazz Air Income Fund completed its C$235 million ($206 million) initial public offering of units.

ACE said it expects net proceeds of C$222 million, which it will use for general corporate purposes.

ACE said the fund issued 23.5 million units at C$10 each. The income fund will acquire a 19.1 percent interest in Jazz Air LP, Air Canada's regional carrier.

Jazz operates a fleet of 120 aircraft to 56 Canadian and 17 U.S. destinations. ACE Aviation will retain a controlling interest in Jazz Air LP.

The fund gave underwriters an option to buy up to 3.5 million more units at the offering price for 30 days to cover over-allotments. CIBC World Markets and RBC Capital Markets acted as joint bookrunners in the underwriting syndicate.

Jazz Air LP also completed C$150 million of secured syndicated credit facilities, and drew down about C$115 million of it on the closing of the offering.

Jazz Air Income Fund distributions will be paid monthly, with the first expected on March 15 to unitholders of record on Feb. 28.

($1=$1.14 Canadian)

Air Canada welcomes improved access to Toronto City Centre Airport
2 February 2006


Air Canada today welcomed the announcement by the Toronto Port Authority (TPA) of improved access to the Toronto City Centre Airport (TCCA).

The TPA today announced the construction of new Ferry Passenger Transfer Facilities as well as the acquisition of a new ferry capable of carrying more vehicles and passengers to TCCA.

"As Toronto City Center Airport's longest serving passenger airline, Air Canada is pleased that the TPA has decided to improve access to the airport. This decision will allow Air Canada, through its regional partner, Air Canada Jazz, to re-instate flights previously cancelled due to the lack of demand caused by inadequate access to the airport under the existing ferry service," said Ben Smith, Vice-President, Network Planning, Air Canada.

With the improved access to Toronto City Centre Airport, Air Canada said it will pursue a substantial increase of frequencies between that airport and Ottawa as well as the reinstatement of flights to and from Montreal. The carrier will also examine the feasibility of additional flights between TCCA and other regional destinations in Canada and the U.S.

Air Canada launches 'North America Air Passes'
2 February 2006


Air Canada has introduced a range of one- year multi-trip passes that give consumers unprecedented freedom to travel everywhere Air Canada, Jazz and their regional partners fly throughout Canada and the United States.

Consumers can choose from among eight passes, each providing complete access within a specified geographic zone in Canada and the continental United States. Each one-year pass is valid for 10 or 20 one-way trips, including connecting flights, based on the carrier's Latitude fare benefits that offer superior flexibility such as complimentary changes and cancellations, advance seat selection and eligibility for confirmed online upgrades 24 hours in advance.

To promote the new Flight Passes, Air Canada is offering Aeroplan members 2,500 Bonus Aeroplan Miles for 10 credit passes and 5,000 Aeroplan Bonus Miles for 20 credit passes purchased on aircanada.com by March 31, 2006, in addition to one Mile for every $3 spent, plus mileage accumulation.

"Our simplified North America Passes represent a huge advance in increasing freedom and flexibility for our customers, by bringing our entire Canada and US networks within reach of every community we serve," said Sean Menke, Executive Vice President and Chief Commercial Officer. "Together with our recently launched multiple user Flight Passes designed specially for businesses and their employees, we will continue to expand innovative online products by giving our customers the choice of Flight Passes that best suit their individual needs."

Air Canada's new 'North America Passes' offer complete access to all points within eight geographic zones using just one credit per one-way trip, including all connecting flights:

Canada East Pass: Travel between and within Quebec, Ontario, Manitoba and Atlantic Canada (New Brunswick, PEI, Nova Scotia and Newfoundland & Labrador).

Canada West Pass: Travel between and within Manitoba, Saskatchewan, Alberta, British Columbia and the Yukon.

Canada East-West Pass: Travel between and within British Columbia, the Yukon, Alberta, Saskatchewan, Ontario and Quebec.

Cross Canada Pass: Travel anywhere within Air Canada's extensive domestic Canada route network.

U.S. Commuter Pass: Travel between Toronto, Ottawa, Montreal and: LaGuardia, Newark, Boston and Chicago. Also includes travel on Air Canada's Rapidair services between Toronto-Montreal and Toronto-Ottawa.

Eastern Pass: Travel on all Canada East Pass routes PLUS, travel between Atlantic Canada, Ontario, Quebec and 36 U.S. cities including: Boston, LaGuardia, Newark, Philadelphia, Washington National, Dulles, Baltimore, Raleigh-Durham, Charlotte, Indianapolis, Cleveland, Minneapolis, Chicago, Dallas, Houston, Atlanta, Fort Lauderdale, Miami, Tampa, Orlando, Fort Myers and Palm Beach.

Western Pass: Travel on all Canada West Pass routes PLUS, travel between British Columbia, Yukon, Alberta, Saskatchewan, Manitoba and 14 U.S. cities including: Los Angeles, San Francisco, San Diego, Las Vegas, Phoenix, Denver, Minneapolis, Dallas and Houston.

North America Pass: Travel anywhere within Air Canada's extensive domestic Canada and U.S. transborder networks.

Air Canada's new 'North America Passes' join the carrier's growing range of multi-trip passes featuring its popular 'Rapidair Pass,' valid on the carrier's frequent shuttle services between Toronto-Montreal and Toronto- Ottawa, and its leisure passes to sun destinations including 'Sun Pass East,' 'Sun Pass West' and 'Hawaii Pass' - now all offered on a permanent, year-round basis.

By BARRIE MCKENNA

Wednesday, February 1, 2006 Page B6

WASHINGTON -- Bombardier Inc.'s bold move into 100-seater jets was probably doomed the day Air Canada -- its most loyal customer -- opted to buy similar planes from archrival Embraer SA of Brazil.

The purchase last year by Air Canada of dozens of 70- and 90-seat aircraft positions Embraer to be the Montreal-based airline's preferred supplier of larger regional jets.

Air Canada chose Embraer because its plane offered a wider fuselage, the potential to put in more than 100 seats and a larger business class cabin, shunning Bombardier's competing 90-seat aircraft, the CRJ 900.

Now, analysts said, Embraer is in an ideal position to snatch the market for 100-seat planes -- if it ever takes off.


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"This market has been the next big thing for some time," said aircraft analyst Richard Aboulafia of Teal Group Corp. in Fairfax, Va.

Most of the action these days is in 70-seat jets, and in that market Bombardier is doing reasonably well, Mr. Aboulafia said.

But Embraer is dominating the still nascent market for larger planes. It has 440 firm orders for its so-called E-Jets, which range in size from 70 to 110 seats, plus options for another 362 planes. The largest of its aircraft offerings -- the E190 -- seats up to 110 people.

"They sized it very intelligently," Mr. Aboulafia said.

The major customers for the Embraer E190 are Air Canada, which has ordered 45, and JetBlue Airways Corp. of the United States, which has ordered 100. Embraer has just begun delivering those.

"We believe this market has a lot of potential," said an Embraer official, who declined to be named.

Bombardier, by comparison, has sold 64 of its 75-seat CRJ 705s and 20 of its 90-seat CRJ 900s.

The dilemma for Embraer and Bombardier is that as they build bigger planes they begin to move onto turf dominated by Airbus SAS and Boeing Co. The Boeing 737 and the Airbus A318 come in 120-seat models, and both companies can crank out more with relatively little effort, according to Mr. Aboulafia.

That has made it particularly tough for Bombardier to justify the massive investment needed to launch the C Series.

Mr. Aboulafia said there's always been a gap in the market for 100-seat planes. But companies that have tried in the past to fill the need have failed miserably. He pointed out that Fokker of the Netherlands went bankrupt trying and BAE of Britain also struggled.

"There shouldn't be a dead zone, but there is," he said. "Companies have gone bankrupt trying to fill it."

Even as it put its long planned C Series on hold yesterday, Bombardier insisted the market for jets carrying 100 to 135 people remains highly promising. Bombardier has estimated that airlines will need as many as 6,000 of those planes over the next two decades.

Embraer is similarly optimistic about the market for 90- to 120-seat jets. It has forecast airlines will buy as many as 3,000 of the planes.

^ You posted the same article in post #311.

Air Canada pays the price for enforcing boarding rule
Duncan Thorne
CanWest News Service
4 February 2006

EDMONTON - Air Canada's $1,482.92 cheque is in the mail to Craig McIntyre, after a little prodding from a federal tribunal.

"It's been a huge battle," Mr. McIntyre said from his Sherwood Park home yesterday.

"It" happened on May 17, 2004, when Mr. McIntyre dropped teenage sons Eric and Scott at Montreal's Pierre Elliott Trudeau International Airport for a flight to Edmonton.

It was 8:10 a.m., 45 minutes before the departure of flight AC 181, Mr. McIntyre said.

Back then Air Canada was recommending that passengers check in 60 minutes before flights. It required they be at the boarding gate with 25 minutes to spare.

Mr. McIntyre saw that there was no line-up that morning. He watched his sons walk up to the check-in desk, tickets in hand.

He left the terminal and hopped in his car. But something made him want to make sure Eric, then 17, and Scott, 16, were OK.

He spotted them at a pay phone, where they were trying to call him.

Mr. McIntyre said: "When my son Eric goes to the counter they say, 'No, you're too late. Go over there and buy new tickets.'

When Mr. McIntyre disputed the decision with the bilingual check-in staff they started talking about the case between themselves in French, he said.

He was eventually able to buy the boys tickets on a WestJet flight, no more than 15 minutes before its departure. The cost: $1,482.92.

Air Canada has contended Eric and Scott arrived at check-in too close to 8:30 a.m., the airline's deadline for being at the boarding gate.

The Canadian Transportation Agency, which licenses the airlines, accepts Mr. McIntyre's version.

It found that Air Canada was within its rights to enforce a rule that passengers be at the boarding gate 25 minutes before departure. But it said the airline could not turn away the McIntyres merely for missing a recommended check-in time.

It ordered Air Canada to pay Mr. McIntyre to cover the cost of the replacement WestJet tickets.

Air Canada January Load Factor 78.1%
7 February 2006

MONTREAL (Dow Jones)--Air Canada's mainline carrier flew 3.50 billion revenue passenger miles in January, up 2.7% from 3.41 billion a year earlier.

In a press release, the company said its load factor was 78.1% in January, up from 77.7% a year earlier.

For the Jazz regional airline, traffic totalled 259 million revenue passenger miles, up 80% from 144 million a year earlier. The load factor slipped to 66.2% from 67%.

WestJet January Traffic Up 20.8%
7 February 2006

CALGARY (Dow Jones)--WestJet Airlines Ltd. (WJA.T) recorded a 20.8% increase in traffic last month, to 741.8 million revenue passenger miles from 614.3 million in January 2005.

In a news release, the company said its capacity rose 11.6% to 982.6 million available seat miles from 880.6 million a year earlier.

January load factor was 75.5% versus 69.8%.

WestJet is a low-fare airline.

Airline told to consider disabled
Debra Black
Toronto Star
9 February 2006
The Toronto Star

Air Canada has received a mild slap on the wrist for failing to provide a woman who had knee surgery with a wheelchair despite the fact she asked for one when she reserved her flight.

The airline has been ordered to issue a bulletin to its employees at Pearson airport within 30 days reminding them to be sensitive to the needs of travellers with disabilities, according to a decision by the Canadian Transportation Agency.

The action comes after a complaint about a flight taken by Ingrid Polacco to London, England, from Pearson on March 5, 2003. She had requested a wheelchair because she had recently undergone bilateral knee replacement surgery. When it came time to board the flight, no wheelchair was to be had.

"Things fell a little below what we would normally provide," Air Canada spokesman Peter Fitzpatrick said yesterday.

"Air Canada does take its commitment to special-needs people very seriously. ... In this case, we regret Mrs. Polacco's experience was unsatisfactory. ... Before she even filed her complaint, we did acknowledge our shortcomings and offered her a travel voucher."

The ruling requires the bulletin "reinforce the importance of initiating discussions with persons with disabilities who have requested assistance, such as wheelchair assistance, to ensure that their needs and abilities are clearly understood and to ensure that uninformed assumptions are not made, for example, the ability of a person to walk."

Fitzpatrick said the airline will comply with the ruling.

Air Canada has improved its services since Polacco's experience, Fitzpatrick said, with the establishment of a special-assistance team for travellers with all types of special needs.

The night Polacco reported to the airport for her flight was one of the busiest travel days at Pearson. She was told to go to the wheelchair desk but was not provided with a wheelchair.

Instead, according to the decision, an Air Canada agent helped her to the departure gate with her luggage. Polacco had to walk to the security area and beyond to her gate and then to the aircraft using her cane.

In her submission, Polacco said "all other passengers with disabilities were provided with wheelchair assistance."

The decision said Polacco, who could not be reached for comment, found the walk to the aircraft and finding her seat without assistance "extremely painful, particularly as she was carrying a bag containing her duty-free products in addition to using her cane."

Air Canada parent posts loss, plans job cuts
By Robert Melnbardis

MONTREAL, Feb 10 (Reuters) - Air Canada parent ACE Aviation Holdings reported on Friday a fourth-quarter loss on high fuel costs and unveiled plans to cut nonunion jobs by 20 percent.

ACE Aviation said it expects the reductions in management and other nonunion staff to be mainly at Air Canada, the nation's largest airline, and its cargo unit, as well as at its ground handling and maintenance services.

The company expects to record job cut costs in its first quarter.

At year end, ACE Aviation had 33,100 full-time employees, including union and nonunion workers, up from 32,000 a year earlier.

ACE Aviation is the holding company for Air Canada, which emerged at the end of September 2004 from 18 months of bankruptcy protection.

In its fourth quarter, the company said it lost C$103 million ($89 million), or C$1.02 a share, compared with a year-earlier profit of C$15 million, or 17 Canadian cents a share. The fourth quarter is traditionally a weak one.

Revenue rose to C$2.3 billion from C$2.06 billion as Air Canada flew more passengers and fuller planes.

ACE Aviation said its quarterly operating loss widened to C$35 million from C$3 million a year earlier. It did not immediately provide a per share figure for operating loss.

Analysts were looking for ACE Aviation to lose 46 Canadian cents a share in the fourth quarter, before items, according to Reuters Estimates.

ACE Aviation said aircraft fuel costs were its biggest expense increase in the quarter from a year earlier, soaring C$146 million, or 34 percent.

Ownership costs, comprised of aircraft rent and depreciation, also rose as Air Canada added 41 aircraft, including regional jets from Bombardier Inc. and Embraer SA .

The company said it planned to pay out C$54.5 million in employee profit sharing for 2005.

ACE Aviation, the first major airline company to spin out its customer loyalty points program, and which recently spun out Air Canada's regional carrier, Jazz, said it will look for ways to monetize its Air Canada Technical Services unit.

"While progress has been made at ACTS in terms of developing the business as a stand alone company, more work remains to be done," ACE Aviation said in a statement.

The company said it will also look for ways to enhance the value of other subsidiaries.

At Air Canada's yield, a closely watched measure of average passenger revenue for each revenue passenger mile flown, was 17.9 Canadian cents in the latest fourth quarter versus 16.9 Canadian cents a year earlier.

Passenger load factor, which measures the average number of seats sold as a proportion of those available on flights, rose to 76.7 percent from 75.5 percent.

ACE Aviation's restricted voting shares closed at C$35.22 on the Toronto Stock Exchange on Friday, 18 percent below their year high of C$43.03.

($1=$1.15 Canadian)

Still got some work to do;)

Air Canada Opts for Boeing Integrated EFBs on All New 777s and 787s

Air Canada plans to install Boeing class-3 EFBs (electronic flight bags) on all new B-777s and B-787s ordered by the airline, making it the first airline in North America to operate such a system that is fully integrated with the airplane's avionics.

The airline says it will have EFB systems installed, certified and delivered on all eighteen of the 777-300ERs, 777-200LRs and 777 freighters, as well as the fourteen 787s, it ordered last November. (Boeing is making the EFB standard equipment on the 787.) The airline should receive its first EFB-equipped 777 in 2007 and its first 787 in 2010.

Boeing considers its EFB a core technology of its "e-Enabled" vision of how aircraft in the future will be one component of an electronically connected aviation enterprise, along with airline ground and ATC systems, operating together in virtual real time. Its EFB uses hardware developed by Astronautics Corp. of America (ACA), and software developed by Boeing, itself, and its Jeppesen subsidiary. 02-10-2006.

Jazz Announces Temporary Suspension Of Toronto City Centre Airport Services
15 February 2006

HALIFAX, N.S. (Dow Jones)--Jazz Air LP has advised Air Canada that it will temporarily suspend service to and from Toronto's City Centre Airport during March.

Jazz, a regional airline, cited "continuing uncertainty created by its eviction from the Toronto City Centre Airport, and the unwillingness of the Toronto Port Authority to assist in securing an alternate facility."

In a news release, Jazz said it operates five weekday round trips to Ottawa from that airport. It noted that the suspension leaves the small Toronto airport without commercial air service.

Jazz and Air Canada are part of ACE Aviation Holdings Inc. (ACE.B.T). Air Canada is Canada's largest air carrier.

As of Feb. 1, Jazz operated scheduled passenger service on behalf of Air Canada with about 738 departures per weekday to 56 destinations in Canada and 22 destinations in the U.S.

Canada probes international air cargo services

MONTREAL, Feb 15 (Reuters) - Air Canada parent ACE Aviation Holdings Inc. said on Wednesday that Canada's antitrust agency is investigating carriers that provide international air cargo services in a widening of the global investigation of suspected price-fixing.

"We did receive yesterday a letter from the Competition Bureau of Canada stating that it has begun an investigation into the activities of carriers that are engaged in the provision of international air cargo services to and from Canada," Isabelle Arthur, spokeswoman for ACE Aviation, told Reuters.

"We will co-operate fully with the Competition Bureau. It is our policy to conduct our business in accordance with all applicable competition laws," she added.

Arthur could not offer further details on the nature of the probe. Air Canada is the country's top airline.

Competition Bureau spokesman Donald Plouffe confirmed his agency had sent a letter to the company on Tuesday but declined to say which, if any, other Canadian firms may be involved in the probe.

The agency is cooperating with its European and U.S. counterparts, but each investigation is being run separately, Plouffe added.

The investigation of airlines suspected of fixing prices widened to Asia on Wednesday as authorities searched the offices of some of the world's biggest carriers from Japan, South Korea and Hong Kong. The European Union's executive arm and the U.S. Justice Department raided a number of airlines on both sides of the Atlantic a day earlier.

The probe centers on surcharges that airlines have imposed for fuel, added security and higher war risk insurance since the Sept. 11, 2001, hijackings in the United States, according to some of the carriers being questioned.

ACE Aviation's restricted voting shares rose 83 Canadian cents to C$34.73 on the Toronto Stock Exchange on Wednesday.

(Additional reporting by Gilbert Le Gras in Ottawa)

Air Canada gets licence for cargo
17 February 2006
The Globe and Mail

Air Canada has obtained a domestic licence to operate an all-cargo service using Canadian aircraft and crew, but only after the Canadian Transportation Agency chastised the airline for concealing information about improperly hiring U.S. planes and staff to do the job.

“It is the manner in which this contravention was dealt with by Air Canada that is inexcusable and reprehensible,” the agency ruled.

Air Canada had sworn in an affidavit last May that it hadn't leased American cargo planes, but it hired Virginia-based Gemini Air Cargo in November, 2004, for a major shipment from Toronto to Vancouver. The affidavit accompanied the Montreal-based airline's application for a domestic cargo licence.

Air Canada used Gemini on eight other occasions, but the agency accepted the airline's explanation that those small shipments were inadvertently transferred to Gemini.

Cargojet Income Fund, Canada's main domestic cargo carrier, had complained that Air Canada wasn't abiding by the rules to use Canadian aircraft and crew.

Air Canada spokesman Peter Fitzpatrick said that the airline regrets its failure to keep the agency informed. “There was a breakdown in internal communications on the Nov. 26, 2004, all-cargo flight.”

He said no decision has been made on what domestic cargo services Air Canada will introduce.

Cargojet president Ajay Virmani played down the prospect of vigorous domestic cargo competition, saying Mississauga-based Cargojet operates a strong network and has numerous long-term contracts to move goods within Canada.

Oil boom spurs flight from Fort McMurray to St. John's: New Air Canada route
Jon Harding
18 February 2006
National Post

CALGARY - Air Canada is cashing in on the large concentration of Newfoundlanders living in Fort McMurray, Alta., and the booming activity in the oilsands industry in the region.

The Montreal-based carrier said yesterday it will begin offering the first non-stop flights between Fort McMurray and Toronto on April 8. The flight will continue non-stop to St. John's.

"It sounds pretty wonderful," said Goldie Canning, a cook at the McMurray Newfoundlanders Club who followed her daughter west four years ago. "I went home last summer and flew from here to Edmonton, then to Toronto, then to Halifax and then to St. John's. It took two days."

There are about 11,000 Newfoundlanders in Fort McMurray -- about 18% of the city's population and the largest concentration of Newfoundlanders outside of that province.

Air Canada spokesman Angela Mah said the pull of the oilsands, where some $100-billion worth of investment is due to take place by 2020, coincides with the arrival of Air Canada's 93-seat Embraer 190 jets, smaller planes that can make long hauls and serve smaller markets.

INTERVIEW-Air Canada parent sees stronger 2006 result
By Bradley Perrett

Feb 20 (Reuters) - Air Canada parent ACE Aviation will improve on its 2005 profit this year, its chief executive said, citing the airline's new business model and excellent industry conditions marred only by fuel prices.

Chief Executive Robert Milton said on Monday he was satisfied with the result for 2005 announced on Feb. 10, a net profit of C$258 million ($224 million).

Asked whether ACE Aviation Holdings Inc. would improve on that this year, he told Reuters: "It is absolutely my intention. It is expected of us and I expect it as well."

He declined to give a specific forecast.

"The economy is strong and traffic levels are extremely buoyant," he said on the sidelines of a conference in Singapore. "Fuel is the only negative."

The reorganised company emerged at the end of September 2004 from 18 months of bankruptcy protection and has reshaped itself with much lower costs to compete with cheap, no-frills airlines.

One example of cost-cutting is greater use of Internet sales, which save on fees paid to travel agents.

"Today we distribute about 60 percent of our domestic sales by the Internet," Milton told the conference, organised by the International Air Transport Association.

Traditional airlines globally are suffering tough competition from no-frills airlines that enjoy low costs thanks to simple services and the advantages of starting from a clean sheet of paper.

Milton said Air Canada was fighting that competition by combining its own newly lowered costs with the higher level of service offered by a traditional airline.

The strategy was based on offering economy seats at exactly the same price as its competitors, giving them no advantage, he said.

But to draw more passengers and earn more revenue, Air Canada let customers add on extras that its competitors did not offer, choosing from a menu of benefits such as business class check-in, frequent flyer points or valet parking.

"Our ultimate goal is not to become a low-cost carrier but a full-service carrier that competes with low-cost carriers," Milton said.

Air Canada's competitors include WestJet Airlines Ltd.

High fuel prices have hit aviation harder than most industries. Fuel accounts for about a quarter of airline costs. (C$1.1493 = $1)

Jazz loses court bid to stay at island airport
Staff and Canadian Press
28 February 2006
The Toronto Star

The Ontario Superior Court of Justice has refused a last-minute injunction to let Air Canada Jazz continue flying from Toronto's downtown island airport while it seeks an alternative home.

Jazz, controlled by the same parent company that owns Air Canada, asked for the injunction after it received an eviction notice from City Centre Aviation Ltd., which operates the airport on behalf of the Toronto Port Authority.

City Centre Aviation is controlled by Robert Deluce, who is setting up a new airline that will operate from the airport in competition with Jazz.

Jazz will suspend all flights from Toronto City Centre Airport after today and fly to Ottawa from Pearson International Airport instead.

"We're certainly viewing this as a temporary suspension of service," Jazz spokeswoman Debra Williams said.

Porter Airlines, the new business being backed by Deluce, welcomed the court's decision and said a rejuvenation of the airport's terminal will begin shortly.

Deluce, who founded Air Ontario - one of several regional airlines that were acquired by what is now Jazz Air - has been trying for years to launch a new airline based at the island airport, despite opposition from Toronto City Council.

Porter Airlines is planning to begin scheduled service in late summer to short-haul destinations in Canada and the U.S.

Air Canada launches non-stop Embraer E190 service between Edmonton and Montreal

EDMONTON, March 2 /CNW Telbec/ - A new Air Canada Embraer E190 jet took to the skies today from Edmonton non-stop to Montreal, launching daily, year-round service between the two cities.

"We know our customers appreciate the choice and convenience of non-stop flights year round," said Marc Rosenberg, Vice President, Sales and Product Distribution. "The addition of new, state-of-the-art aircraft to Air Canada's fleet allows us to deploy the right aircraft to meet travel demand, while offering more frequencies and superior comfort for our customers in Edmonton."

The new Embraer jets are outfitted with Air Canada's new personal entertainment system that is being introduced fleet-wide, and features 8.9-inch wide digital in-seat monitors with touch-screen controls offering
audio and video on demand programming at every seat. Other amenities include Air Canada's new seating and cabin design with in-seat power within reach of every customer, no middle seats, spacious overhead bins and cabin interiors that offer plenty of head room with extra-wide aisles.

The 93-seat E190 aircraft is configured to provide a choice of two
classes of service with 9 window or aisle seats in Executive Class offering
39 inches of legroom, and 84 window or aisle seats in Hospitality service
offering 33 inches of legroom. The E190 has a cruising speed of 830 km/h and a range of up to 4,260 km with a maximum payload of 12,720 kg. Air Canada has firm orders for 45 E190 aircraft with additional options for up to 60 additional E190 aircraft.

"The introduction of the new Embraer jets is a clear demonstration of Air Canada's commitment to serving the growing air travel needs of our region," says Reg Milley, Edmonton Airports President and CEO. "We're pleased that the Edmonton-Montreal route is one of the first in Western Canada to receive the new E190 and the state-of-the-art comfort and entertainment it provides."

The renewal of Air Canada's North American fleet enables more non-stop flights and enhanced services for Edmontonians:

Edmonton-Los Angeles: daily non-stop flights starting May 1 with 75-seat
Bombardier 705 jet offering a choice of Executive Class or Hospitality
service.

Edmonton-Ottawa: one additional flight for a total of two daily non-stop
flights with 93-seat Embraer E190 offering a choice of Executive Class or
Hospitality service.

Edmonton-Winnipeg: one additional flight for a total of three daily
non-stop flights with 50-seat Bombardier CRJ-200.

Edmonton-Fort McMurray: one additional flight for a total of five daily
non-stop flights.

Edmonton-Grande Prairie: one additional flight for a total of five daily
non-stop flights.

From Edmonton, Air Canada and Air Canada Jazz offer more than 370 scheduled flights each week to 11 destinations across Canada and the U.S.

WestJet's February Load Factor Increases to 80.8%

CALGARY, ALBERTA--(CCNMatthews - March 7, 2006) - WestJet (TSX:WJA) announced its traffic statistics for February 2006 today, featuring a 22% increase in revenue passenger miles (RPMs) to 727.3 million, up from 597.8 million in February 2005. Year to date, RPMs increased 21% to 1.469 billion from 1.212 billion in the same period in 2005.

Available seat miles (ASMs) grew 10% to 899.9 million in February 2006, up from 820.5 million in February 2005. Year to date, ASMs have increased 11% to 1.882 billion, up from 1.701 billion in the same two-month period in 2005.

WestJet's load factor for February 2006 was 80.8% compared with 72.9% in February 2005, featuring a 7.9% percentage-point increase. During the first two months of 2006, the company's load factor increased 6.8 percentage points to 78.0% compared with 71.2% during the same period in 2005.

"We are extremely pleased with our operating results for February, producing a year-over-year 22% increase in RPMs and an important increase in load factor." said Clive Beddoe, WestJet's President and CEO. "These numbers point to us producing stronger first quarter results than last year as we continue to see improvements in both load factors and yield."

"Today's announcement indicates that our marketing and operating strategies are working very well."

Marking its tenth anniversary this year, WestJet is Canada's leading low-fare airline offering scheduled service throughout its 33-city North American network. Named Canada's most respected corporation for customer service in 2005, WestJet pioneered low-cost high-value flying in Canada. With increased legroom and leather seats on its modern fleet of Boeing Next-Generation 737 aircraft, and live seatback television provided by Bell ExpressVu on the majority of its fleet, WestJet strives to be the number one choice for travellers.

Air Canada launches 'Oil Express Pass' to/from Fort McMurray, offers oil patch workers convenience of new multi-trip flight pass

FORT MCMURRAY, AB and ST. JOHN'S, NL, March 8 /CNW Telbec/ - Less than three weeks after Air Canada announced 'Newfoundland Express' direct flights between Fort McMurray, Alberta and St. John's Newfoundland & Labrador beginning April 8th, the carrier today introduced a multi-trip Flight Pass specially tailored to meet the travel needs of oil patch workers in northern Alberta. By offering pre-purchased flight credits conveniently online, Air Canada's 'Oil Express Pass' simplifies planning travel for work and leisure between Fort McMurray and Atlantic Canada, select destinations in Eastern Canada and the southwestern United States.

Air Canada's 'Oil Express Pass' provides pass holders with six pre-purchased one-way trips, including connecting flights, to/from Fort McMurray and all points served by Air Canada and Air Canada Jazz in Newfoundland & Labrador, Nova Scotia, Prince Edward Island, New Brunswick, as well as Montreal, Toronto, Ottawa, Phoenix, San Francisco, Los Angeles and Las Vegas. Travel must commence or finish in Fort McMurray.

"Air Canada's 'Oil Express Pass' is designed to provide oil patch workers in northern Alberta, their friends and family with the peace of mind to travel for work or leisure whenever they want," said Sean Menke, Executive Vice President and Chief Commercial Officer. "This newest addition to our growing range of multi-trip Flight Passes offers great value for the simplicity and convenience it provides to plan travel between Fort McMurray and some of the most popular destinations in Eastern Canada and the U.S. Southwest. We look forward to introducing more multi-trip Flight Passes tailored to suit the
individual needs of our customers."

Flight Pass holders receive one Aeroplan Mile for every $3 spent, plus mileage accumulation. The 'Oil Express Pass' is now available for purchase for $2,334 including airport fees and charges, excluding GST and QST if applicable. The pass is valid for a one year period offering the booking conditions of Air Canada's everyday low Tango fare product, plus complimentary seat selection when done online.

Air Canada's multi-trip Flight Passes are available exclusively online at aircanada.com and through travel agents, for residents of Canada. Convenient online access through the customer's personalized Flight Pass at aircanada.com provides an easy and quick way to book travel and make changes. To purchase a pass, customers or their travel agent simply visit aircanada.com, click on 'Flight Pass' on the home page, and enter their Aeroplan membership number and personal identification number. Complete details on booking conditions are available at aircanada.com.

Air Canada's new 'Oil Express Pass' joins the carrier's growing range of 'North America Passes' featuring its popular 'Rapidair Pass,' valid on the carrier's frequent shuttle services between Toronto-Montreal and Toronto-Ottawa, its multi-user 'Small Business Pass' for companies and its leisure flight passes for sun seekers including 'Sun Pass East,' 'Sun Pass West' and 'Hawaii Pass' - now all offered on a permanent, year-round basis.

Air Canada has led the industry in launching multi-trip air passes that provide customers with the convenience to self manage frequent air travel using pre-purchased flight credits in a personalized online Flight Pass. In addition, Air Canada is the first network carrier in North America to have introduced everyday low, simplified online fares across its Canada and U.S. route network. It further simplified its value-driven fare products by eliminating Saturday stay and return fare requirements.

Air Canada and Air Canada Jazz operate more non-stop flights within Canada and to the United States than any other airline. Within Canada, the carriers operate more than 955 non-stop flights per day on 135 routes to and from 59 Canadian airports. Between Canada and the United States, the carriers operate more than 385 non-stop flights per day on 85 routes to and from 51 U.S. and 7 Canadian destinations. In 2005, an independent survey of more than 12 million international air travellers ranked Air Canada as the Best Airline in North America.

How many passes do they have now;)

Air Canada's Jazz eyeing U.S. partnerships-CEO
By Wojtek Dabrowski

TORONTO, March 14 (Reuters) - Air Canada's regional Jazz subsidiary has held partnership talks with U.S. carriers regarding transborder service, Jazz Chief Executive Joseph Randell said on Tuesday.

"It's an opportunity, it's something that we will look to take advantage of," Randell told Reuters in an interview. He added that no deal appears imminent because of regulatory hurdles.

"It's a two-edged sword where, on one hand, it's difficult for us to operate in the U.S., on the other hand it is difficult for U.S. operators to operate in Canada," he said.

Consequently, a reduction in restrictions, including ownership rules, would have to be two-sided as well, "on a fair and equitable basis," he said, adding that a cut to government red-tape over ownership could create "opportunities to operate, purchase (and) merge."

As of Feb. 1, Jazz flew to 56 destinations in Canada on Air Canada's behalf, but to only 22 destinations in the United States. It has a fleet of 131 aircraft, which it will grow to 135 by July, Randell said.

Jazz is 79.7 percent owned by Air Canada parent ACE Aviation Holdings Inc. and 20.3 percent owned by Jazz Air Income Fund , which started trading in February. ACE raised a gross total of C$250 million ($217.4) from the fund offering.

Randell also noted that another area of growth for Jazz, which currently derives most of its business from selling capacity to Air Canada, is its charter and maintenance, repair and overhaul business.

The oil boom in Canada's west, for example, has spurred charter demand.

"In Western Canada, we're doing charter work for the oil companies," he said.

Randell also said Jazz is ideally suited for the low-tax income trust structure, where most of a company's profits flow through to investors, who are then taxed on the earnings.

He said Jazz is insulated from most variable costs faced by airlines, which are passed on to Air Canada under the carriers' 10-year capacity purchase agreement. These include all-important fuel costs, airport user fees and navigation fees.

The costs that Jazz is responsible for, which it negotiates with Air Canada and on which it is paid a markup by the carrier, include wages, salaries, maintenance expenses and aircraft leases.

"We've worked to make those very predictable," Randell said. For instance, about 50 percent of Jazz's cost base is labor. That expense is negotiated with unions in multiyear collective agreements, which keeps them stable, he said.

"A very small amount of our costs are actually unpredictable or subject to variation," he said.

FUND UNITS STALL

For all of Jazz's predictability described by Randell, investors have not been too eager to bid up the trust's units since its IPO. First offered at C$10 each, they were at C$9.25 on Tuesday on a very thin volume of 12,060.

Analysts and investors have said this is due in part to the fact that airlines have historically been notorious underperformers. They have struggled with high costs of fuel, as well as demand which plunged after the Sept. 11, 2001, attacks in the United States, and the SARS outbreak in Canada. Air Canada itself visited bankruptcy protection for 18 months before emerging in September 2004.

So, aside from confidence in Jazz's business model, what does Randell say to those who bought into Jazz's IPO only to see the units languish?

"We have no explanation for the change," he said, adding that Jazz was at the Toronto Stock Exchange on Tuesday "and we were told that it's sometimes not unusual for initial offerings to drop off a little bit and then come back. But, again, I'm not forecasting what's going to happen here, other than we're confident in our business and our business plan."

($1=$1.15 Canadian)

ACE Aviation to sell 7 million Aeroplan units

MONTREAL, March 17 (Reuters) - Air Canada parent ACE Aviation Holdings Inc. said on Friday it intends to sell 7.1 million units of Aeroplan Income Fund under a previously announced special distribution to its shareholders.

ACE said the 7,085,111 Aeroplan units to be sold consist largely of those that cannot be distributed to U.S. shareholders of ACE. The Montreal-based company said it may begin selling the units on March 24 on the Toronto Stock Exchange.

On Feb. 16, ACE approved a C$266 million ($231 million) special distribution to its shareholders of units of Aeroplan, which holds a stake in Air Canada's customer loyalty points program.

The distribution of 0.18 Aeroplan unit for each class A variable voting share, class B voting share and preferred share of ACE is being made as a return of capital. It amounts to about 10.1 percent of Aeroplan units.

ACE is distributing 20.2 million Aeroplan units all told. Of that, 13.1 million units will be delivered to ACE shareholders and the remaining 7.1 million units will be sold on the exchange.

After taking into account the distribution, ACE will have a 75.5 percent stake in Aeroplan LP, while Aeroplan Income Fund will hold 24.5 percent.

($1=$1.15 Canadian)

Air Canada adds daily flights to Salt Lake, San Diego
18 March 2006
The Toronto Star

Air Canada continues to expand into the U.S. with two new daily services to Salt Lake City and San Diego from Toronto.

Non-stop service to Salt Lake City using 75-seat Bombardier CRJ-705 aircraft operated by Air Canada Jazz will start June 2. On July 1, Air Canada will reintroduce daily, non-stop service to San Diego from Pearson International, using 120-seat Airbus A319 aircraft.

The schedules are: Toronto-Salt Lake City, AC8651 leaves Toronto at 6: 20 p.m., arrives in Salt Lake City at 8: 50 p.m. AC8652 leaves Salt Lake City at 9 a.m., reaching Toronto at 2: 45 p.m. Toronto-San Diego: AC779 leaves Toronto at 9: 10 a.m., arriving in San Diego at 11: 28 a.m. AC780 leaves San Diego at 12: 15 p.m., arriving at Pearson at 7: 48 p.m.

Labour disputes give Jazz the blues
Mechanics warn of work slowdown Could cause flight delays at Pearson
Rick Westhead and Robert Cribb
20 March 2006
The Toronto Star

Flight delays could hit Air Canada Jazz as early as today as a long simmering dispute between the airline and its mechanics boils over.

Employee complaints about management, ranging from harassment to racial discrimination - including the alleged posting of a "Whites Only" sign on an office door at Toronto's Pearson International Airport - have been joined by anger over a new company rule obliging mechanics to use electronic time cards.

Last Tuesday, as many as 21 mechanics went home in protest over the time-card policy and now face disciplinary hearings today and tomorrow they say could trigger a work-to-rule campaign. If that happens, they say the result would be lengthy delays at Canada's busiest airport.

A Jazz spokesperson yesterday denied allegations of racism among management and insisted there will be "absolutely no impact" to scheduled flights as a result of unhappy mechanics.

"We can't elaborate on an internal situation involving employees," says Debra Williams, who said there were fewer than 20 mechanics who booked off work last Tuesday due to illness. "With anything like that, we'd work through it with the union."

The employees who walked off the job last week say they did so in a show of solidarity for an employee who was suspended the same day for refusing to use the time-card system. Several spoke to the Star on condition of anonymity.

Jazz has won a ruling from the Canada Industrial Relations Board that the mechanics who walked off the job a week ago did so illegally.

"One by one, we went in the office and said we were sick," said Sean Kemsley, a Jazz mechanic who faces a disciplinary hearing tomorrow. "Most of us ... are so sick to death and stressed out from this crap, (we said) 'If you're going to send one of us home, you're going to send all of us home.' "

If the airline now terminates some or all of those mechanics, Jazz may face a debilitating slowdown, employees and a union official said.

"We're talking about mechanics doing things to the Nth-degree; it's an attempt to slow down operations," said Anne Davidson, a bargaining official with the Canadian Auto Workers, which represents Jazz mechanics.

Grant Anastas, a Jazz mechanic in Toronto who isn't among those facing disciplinary action, says there's strong support for colleagues who walked off the job.

"We went through the company, we went through the union and we're stalled," he said. "We're not treated as professionals. It's constant abuse. And I fix aircraft that fly my family, your family, everybody. I want to make sure they're done right."

Jazz has about 750 mechanics stationed across the country with more than 150 in Toronto.

In an interview with the Star, one mechanic who has worked for Air Canada for more than five years, said Jazz typically completes maintenance on 18 to 20 jets in a 12-hour shift. With a work to rule, it could pare that figure to 10, he said.

"I think you'll find (Jazz) mechanics will become the most diligent mechanics you will ever find. They will follow our maintenance procedure manual to the tee. If that means a job takes four hours they'd normally do in two or three, they'll take the four hours."

Further highlighting how tense relations between the mechanics and Air Canada have become, the Canada Human Rights Commission is expected in coming months to hear a complaint filed by a former employee, fired last year, who charges an Air Canada supervisor hung a sign titled "Whites only" outside his office. Davidson confirmed the complaint had been filed.

"We have absolutely zero tolerance for any kind of discriminatory behaviour like that," said Jazz's Williams. "We have policies in place to deal with situations such as that."

The battle over the use of a card to swipe in and out on shift changes first surfaced when a number of Air Canada ramp workers and mechanics walked off the job on Jan. 19, 2005, in what the company described as an illegal job action.

At the time, employees and union officials said the company alleged it had become standard practice for some workers to falsify the time sheets of colleagues who have allegedly left work early or in some cases haven't shown up at all.

Jazz mechanics say the company hasn't followed through on a pledge to notify them on pay stubs whenever their so-called time bank was docked for lateness or other infractions.

With a fleet of 130 planes, the current Air Canada Jazz was created in 2002 with the merging of AirBC, Air Nova, Air Ontario, and Canadian Regional. Jazz operates routes between 70 North American cities and is one of the world's largest regional carriers.

Some of the mechanics who spoke on the condition of anonymity said the 1,500 union members may seek to sever ties to their current union, the CAW, because it hasn't supported the employees on their electronic time-clock complaint.

"We resigned for the simple fact that our union wasn't supporting us," said one mechanic who spoke with the Star on condition of anonymity. "We're just not getting any support."

The CAW's Davidson defended Jazz on the time-card issue, saying the information has been inconsistent on pay stubs because of a glitch, but that Jazz has agreed to provide the biweekly printouts on its own.

"We have advised other employees to use the swipe cards," she said. "Not using them borders on insubordination - that's the company's view of it."

Davidson said Pearson International has become a cocktail of tension and venom between employees and Jazz management. A number of mechanics working there "are quite a militant sort of group," she said.

In a bid to ease relations at the Toronto airport, Davidson said the company and union have agreed to hire a former administrator of Canadian Airlines' employee assistance program to determine why so many disputes have erupted between Jazz and its mechanics.

"This is not a terrible employer," Davidson said.

It seems that Air Canada's Boeing order will look like this:

777
200LR--13
300ER--3
200F---2

787
800--14
http://www.aircanada.com/en/about/investor/documents/NBF_060321.pdf

Mind you, Air Canada has options to go as many as 90+ aircrafts later on

I believe AC has revised its 777 order to:

200LR--12
300ER--4
200F--2

It was posted on airliners.net

^^Yup, I think you're right....but I am still amazed at the number of LRs they are getting

Also Air Canada revised the 787 orders as well. They will be getting both the 787-8 and 787-9. They may also consider to include the new 787-10 from boeing in the options list.

TORONTO

'Hard' to raise wages at Air Canada, ACE's Milton warns
Alexandre Deslongchamps
Bloomberg News
30 March 2006

OTTAWA - ACE Aviation Holdings Inc., owner of Air Canada, will find it "hard" to increase wages in labour contract talks this year because other carriers have reduced pay, chief executive Robert Milton said yesterday.

"The unions and the employees want pay increases," Mr. Milton told reporters in Ottawa. "It's very hard to look at that kind of a change given that in most places around North America wages are going down very, very significantly."

Canada's largest airline is preparing for talks with about 25,000 employees at five unions representing workers such as pilots, ground crew and flight attendants. Their contracts, which expire in 2009, allow for wage negotiations this year and prevent a lockout at the Montreal-based company or a strike by employees.

No talks date has been set, an Air Canada spokeswoman said.

The Air Canada Pilots Association, the union representing about 3,100 pilots, is seeking to recoup some of the wages lost when Air Canada reorganized while under bankruptcy protection, which it exited in October, 2004.

"The company is profitable again. That they can afford to distribute $250-million to their shareholders is a sign that the company's making great progress, so we're looking for some acknowledgement of that," union spokesman Carl Mavromichalis said yesterday in an interview.

Mr. Milton said any wage increases may be determined by an independent arbitrator.

ACE shares fell 45 cents to close at $34.72 in Toronto yesterday.

WestJet lays down the law on staff conduct; Espionage is out; protecting data is in
30 March 2006
The Globe and Mail

Just in case there's any fragment of doubt, WestJet Airlines Ltd. is making it clear that hiring spies to snoop on Air Canada is out of bounds and carelessly throwing company secrets into the trash is tantamount to treason.

WestJet wants its employees to jealously guard internal data, amending its code of business conduct nearly two years after Air Canada accused the Calgary carrier of stealing sensitive information.

It's part of WestJet's broader goal to reassert itself as the honest and courteous airline instead of one that allegedly gained an unfair advantage by hacking into a confidential Air Canada website.

Although WestJet's main website states that its internal code of conduct won't be released to the public, the company filed the document for the first time yesterday with Canadian securities regulators.

In the 23-page code, there are motivational touches with slogans such as “We are Team WestJet,” “WestJet's image is important to its success,” and “We personify the hard-working ‘can-do' attitude.”

There are also stern passages, with WestJet telling its workers to “ensure that paper documents are securely shredded” and to diligently classify information under three categories — “Internal, Confidential and Restricted.”

WestJet's code tells workers to take the high road if they stumble across a rival's secrets, saying it's best to seek legal advice first from WestJet if someone from a competing airline, for whatever reason, volunteers to forward internal data.

Lest anyone go astray, WestJet spells out improper behaviours: “Corporate espionage actions, such as using listening devices, gaining access to buildings by subterfuge, buying information from competitors' employees, hacking employee computer systems, and the like.”

The carrier wants its employees to be proud “WestJetters,” warning against “misrepresenting oneself to gain access to competitor information; i.e., pretending to be a reporter or repairman.”

A good rule of thumb? “Never deposit Restricted or Confidential in the trash or an insecure recycling bin,” WestJet's code advises.

As for the nitty-gritty of labelling, WestJetters are supposed to methodically classify internal memos, letters and e-mails. Employees are asked to “attach a label to the document, using a header or footer, a stamp or add as part of a signature in an e-mail.”

The company provides examples of its escalating security levels: Details on procedures for handling unruly guests (internal); quarterly financial results still being compiled (confidential); and marketing analysis of potential new routes (restricted).

“This includes information that could be used by competitors to their advantage. Competitors would like to learn as much as they can about us. If a competitor learned about WestJet's plans to enter a new market at a certain fare, it could harm WestJet by offering a lower fare on that route before we were ready to begin service.”

Montreal-based Air Canada is suing WestJet for $220-million, alleging that the smaller carrier hacked into a confidential Air Canada reservations website and stole sensitive data. WestJet denies any wrongdoing and none of the allegations has been proved in court.

Two years ago, Air Canada hired private investigators to search WestJet co-founder Mark Hill's trash in the Victoria suburb of Oak Bay. Air Canada, which said in court filings that its internal papers were found shredded in his trash, later hired a U.S. firm to digitally reconstruct the documents.

The code offers a reminder that, besides protecting papers, employees must be careful with “spreadsheets, computer programs, e-mails, display screens, computer tapes, CDs and diskettes.”

The carrier's renewed emphasis on corporate integrity extends to contractors and consultants, who are asked to join the drive to be “positive and passionate about everything we do.”

Touting honesty as the best policy, WestJet outlines some danger signals that merit reporting to the airline's anonymous hotline: “Working late, you notice a fellow worker loading his or her car with WestJet equipment or parts” or “a fellow worker drinks during prohibition period or reports for duty unfit for work” or “someone you don't know, or who claims to be an executive or part of the Help Desk, calls you and asks for your password.”

WestJet also strives to put its best foot forward with its own carefully crafted marketing strategy.

“It is extremely important that only persons designated by management communicate with the public. Undesignated employees must never provide information about WestJet to reporters or other media representatives.”

WestJet asks customers to assume 'winglet' pose

CALGARY, Alberta, March 31 (Reuters) - Canada's WestJet Airlines Ltd. issued a press release on Friday urging customers to help it conserve fuel by imitating a winglet, the vertical extension at the end of airplane wings, while in their seats during flights.

"Beginning tomorrow, we ask that every guest aboard a WestJet aircraft assume the inflight winglet position upon takeoff," the release said. "This involves straightening the arms at a 90-degree angle to the side of the body, holding the fingers together and positioning the hand at an 90-degree angle upward."

The Calgary-based airline, Canada's second-largest behind Air Canada, later said the release was indeed a joke to mark April Fool's Day on Saturday, but also served to promote the company's recently acquired Boeing 737-700 aircraft. It expects to have 12 of the planes leased this year and six more in 2007 as it replaces older, less fuel efficient models.

The company has a history of odd promotions. In January, just in advance of a Canadian federal election, it offered free flights to anyone having the same name as a federal party leader.

Gillian Bentley, a spokeswoman for the company, said WestJet has issued April Fool's releases before.

"We've done a few of these kind of things in the past but not for the last few years," she said. "So we thought it was time.

Air Canada leases additional Boeing 777-300ER to accelerate wide-body fleet renewal and modernization
Monday April 3, 8:01 am ET CNW Group


MONTREAL, April 3 /CNW Telbec/ - Air Canada announced today it has signed a 10-year lease for one new Boeing 777-300ER from International Lease Finance Corporation to accelerate its wide-body fleet renewal and modernization program.
Air Canada will take delivery of the leased aircraft in May 2007, bringing to eight the total number of Boeing 777s entering the fleet next year. Delivery of the leased aircraft will allow Air Canada to accelerate by nearly two years the return of a leased Airbus A340-300 originally scheduled to be returned to ILFC in mid-2009. The transaction is part of an ongoing renewal program that will give Air Canada one of the most modern aircraft fleets in the world and provide savings on fuel, expanded range capabilities and other efficiencies.

In November 2005, Air Canada announced that it had concluded agreements with Boeing for the acquisition of up to 36 Boeing 777s and up to 60 Boeing 787 Dreamliners. The agreements include firm orders for 18 Boeing 777s, plus purchase rights for 18 more, in a yet-to-be determined mix of the 777 family's newest models: the 777-300ER, the 777-200LR Worldliner and the 777 freighter. Delivery of the 777 aircraft is scheduled to commence in March 2007. The agreements also include firm orders for 14 Boeing 787 Dreamliners, plus options and purchase rights for an additional 46 aircraft. Air Canada's first 787 is scheduled for delivery in 2010.

TORONTO

Great news:D:D

YAHOO! News

(Just when I though AC could not get any worse...)

WASHINGTON - Ask for a pillow and blanket to help get through a long flight and you may be out of luck. Or you may be able to buy a "comfort package" from Air Canada for $2. Like to check your luggage curbside? That could cost up to $3 a bag.




Airlines are starting to charge for many services that once were free — such as assigned seating, paper tickets and blankets. Air travelers who don't fly often may be in for some unpleasant surprises when they reach the airport this summer.

"They're going to be confused and they're going to be somewhat upset," said Kevin Mitchell, president of the Business Travelers Coalition. "Is it going to stop them from flying? No."

Intense competition from low-fare airlines along with high jet-fuel prices have led many established carriers to cut back or charge passengers for amenities.

Many airlines no longer serve meals on flights, instead charging for snack boxes and sandwiches.

Sharon Ansara, a government supervisor from El Paso, Texas, flew an American Airlines flight from Dallas to Washington Monday morning.

"We didn't even get peanuts," she said after the 2-1/2 hour flight. "They offered us a snack pack for $4. It stinks."

American spokesman Tim Wagner said that passengers have made it clear that their first priority in buying an airline ticket is price. The company offers a la carte services — such as snack packs — for those willing to pay for them.

Air Canada, which recently emerged from bankruptcy, decided against eliminating pillows and blankets, as some airlines have done. Instead, the airline decided to give passengers the choice of buying an inflatable pillow and a light fleece blanket for $2, according to spokeswoman Isabelle Arthur.

There are limits to what passengers will pay for.

American Eagle, which flies commuter flights for American, experimented in January with charging passengers for soft drinks.

"They evaluated customer response," Wagner said. "The customer response was, 'No, we don't want to pay $1 for a soft drink.'" The test ended, he said.

Some services once taken for granted are now viewed as amenities as the burden of ticketing now falls on the passenger with the home computer instead of airline employees.

Talking to an airline reservation agent instead of booking a ticket on the Internet will add $5 or $10 to the price of a ticket. A paper ticket instead of a computer-generated one will cost $20 or $30 for a domestic flight.

Passengers are also finding that the limits on baggage size and weight are lower, and that airlines are enforcing them. For most airlines, passengers are charged at least $25 for a bag that weighs more than 50 pounds. A third checked bag will cost $80 on many airlines.

Some airlines are now even charging to reserve seats with extra legroom.

United Airlines charges $24-$99 to sit in the Economy Plus section, which has five extra inches of leg room.

Some international carriers also charge for aisle or bulkhead seats. Northwest Airlines in March began charging $15 for exit rows some forward aisle seats.

Carol Mundt, a retiree who lives in the Washington area, travels frequently for visits and vacations. She heard about Northwest's new seat assignment charges.

"I was appalled that they would charge me for my aisle seat," she said while waiting to pick up a friend at Washington's Reagan National Airport.

Northwest spokesman Kurt Ebenhoch said Northwest has to be able to compete against low-cost airlines like Southwest, which doesn't assign seats at all.

Southwest, which carried more people in the U.S. than any other airline, doesn't charge for a la carte services, with the exception of overweight and oversize bags.

A soft drink, a bag of pretzels and a changed ticket don't cost extra, said Southwest spokesman Ed Stewart.

But Southwest doesn't offer services such as assigned seating or keeping an eye on an unaccompanied child who's making a connection.

Continental Airlines is one of the few that still offers hot meals on domestic flights.

Sandy Gorie, 45, a real estate project manager, lives in Cleveland and takes Continental to Washington on Monday mornings and returns on Friday nights.

"I've been doing this since November and my Continental experience has been great," she said.

Air Canada hikes fares as fuel costs rise

TORONTO, April 11 (Reuters) - ACE Aviation Holdings Inc. unit Air Canada said on Tuesday it will increase ticket prices in a bid to control rising costs for fuel.

Air Canada will raise prices immediately for travel between Canada and the United States as fuel costs, its second-largest operating expense after labor, maintains lofty levels.

The company said base fares for flights within Canada have been increased each way by C$6 ($5) on short-haul flights, C$8 on medium-haul flights and C$10 on long-haul flights.

Base fares for flights between Canada and the United States will rise each way by C$6 on short haul flights, C$8 on medium haul flights, and C$10 on long haul flights.

($1=$1.15 Canadian)

Canada's WestJet flies fuller planes in March

TORONTO, April 5 (Reuters) - WestJet Airlines Ltd. said on Wednesday it flew fuller planes in March and appeared upbeat as it prepares to offer new non-stop flights across Canada later this year.

Calgary, Alberta-based WestJet said load factor, a measure of how well it fills seats, rose to a record high of 81.9 percent in March from 77.8 percent in March 2005.

WestJet also said passenger traffic, measured as revenue passenger miles, rose 15 percent during the same period.

For the first three months of 2006, WestJet's load factor is up 5.8 percent from the same period of 2005, while passenger traffic is up 19 percent.

Air Canada goes off the bottle
20 April 2006
The Globe and Mail

Air Canada is ditching glass wine bottles in favour of lightweight containers on its Montreal-to-Paris route this week in a trial to reduce the weight of its planes, underscoring the airline's drive to save on fuel as oil prices soar.

“If the test proves successful, our current high-quality French wines from Domaine Paul Mas will eventually be packaged in the new format,” Air Canada told employees in an internal e-mail yesterday.

The experiment with abandoning the venerable vino bottle in favour of the Tetra Pak (the juice box is one) is the Montreal-based carrier's latest effort to find innovative ways to reduce fuel bills. For every kilogram shed, the airline estimates each aircraft could save at least $150 a year in fuel costs, so every little bit helps.

Air Canada completed a six-week test on its Montreal-to-Cancun route using new galley carts that are two-thirds the weight of traditional ones. The new full-size cart weighs 10 kilograms less than older models, and a half-size cart is 5.5 kg lighter.

Air Canada executives, eager to embrace aircraft weight-loss programs, have recently introduced several other plans to lighten the load.

Those measures include only partly filling water tanks, and disposing of empty wine bottles at the arrival city instead of flying them back to the departure site.

The airline has a “fuel-efficiency team” that's canvassing employees for suggestions, and the Tetra Pak idea came from flight attendant Judy Gordon and information technology manager Valerie Lepieszo.

“Tetra Paks [possibly made in Canada by Tetra Pak in Richmond Hill, Ont.,] would not only help reduce aircraft weight by approximately 50 kg per international flight, but they would also provide additional benefits, including 33 per cent more wine for the same price and in the same amount of stowage space,” the Air Canada e-mail said.

So far, the carrier likes what it sees in the shift to packaged wine in the transatlantic trial, stating that the “quality of wine remains the same” and praising “easier handling for flight attendants and kitchen handlers.”

As well, “unlike glass bottles, Tetra Paks won't break and that means no injuries to employees. The Tetra Paks are also warehouse friendly because they can handle greater shifts in temperature and are 100 per cent recyclable.”

Last October, Air Canada began charging $2 for a “comfort zone” kit consisting of an inflatable plastic pillow and polyester blanket. That lighter-weight kit on short-haul flights has allowed the airline to jettison its regular pillows and blankets.

The carrier also tightened weight limits last fall on the free-checked-luggage allowance, making ground handlers happy to see heavier pieces disappear.

In the three months after the luggage limits came into effect, “baggage-related workplace injuries decreased by approximately 48 per cent and productivity increased by more than 57 per cent, compared with the same period the previous year,” Air Canada said.

It's not just shedding aircraft weight that helps the bottom line. The airline is also conserving fuel whenever possible, including shutting down an engine during the taxiing phase and minimizing the use of auxiliary power at gates.

Air Canada started a program last August to lock in the prices it pays for some of its fuel. And last week, the carrier raised the fuel charge on its base fares for the third time in a year.

While many plans to slash weight and save on fuel expenses have been implemented, Air Canada decided last month that it doesn't make sense to strip the paint off its fleet of 45 Boeing 767 aircraft. The airline removed paint from one plane in a test, but the aluminum skin required extra maintenance, outweighing the benefits of lower fuel costs.

Carriers around the world have found novel ways to cut kilograms. Atlanta-based Delta Air Lines Inc., for instance, has removed phones from some economy-class sections of its aircraft.

To be profitable, you have to be inovative

Air Canada parent's credit rating boosted
CP
21 April 2006

http://www.globalphotos.org/toronto/20050916/SEOUL01-S01-023.jpg

ACE Aviation Holdings Inc., owner of Air Canada, had its corporate credit rating raised one level by Standard & Poor's Ratings Services because the carrier's financial performance exceeded that of some North American rivals. The rating on Montreal-based ACE was raised to B+ from B, Standard & Poor's analyst Kenton Freitag said in a report yesterday. The new rating is four levels below investment grade.

WestJet returns to profit in first quarter

TORONTO, April 27 (Reuters) - WestJet Airlines Ltd. returned to profit in the first quarter after a year-earlier loss, on the back of record load factors and improved yields, the company said on Thursday.

The Calgary, Alberta-based company, Canada's No. 2 airline, earned C$12.9 million ($11.4 million), or 10 Canadian cents a share, compared with a loss of C$9.6 million, or 8 Canadian cents per share in the first quarter of last year.

"During this quarter, we have witnessed record breaking load factors as well as improved yields, all of which we have achieved while continuing to add capacity," chief executive Clive Beddoe said in a statement. "This accomplishment, which is hard to attain in the airline industry, is one we have now achieved over the past three quarters."

WestJet's revenue during the quarter rose to C$387.6 million, from C$294.6 million a year earlier.

WestJet said it expects further growth in Eastern Canada, transborder flights and the business-traveller market.

($1=$1.13 Canadian)

WestJet And Air Canada Settle Dispute
29 May 2006
DOW JONES NEWSWIRES

WestJet Airlines Ltd. (WJA.T) and Air Canada have agreed to settle their litigation, with WestJet agreeing to pay Air Canada's investigation and litigation costs of C$5.5 million.

WestJet admitted that certain members of its management "engaged in an extensive practice of covertly accessing a password protected proprietary employee Web site maintained by Air Canada to download detailed and commercially sensitive information without authorization or consent from Air Canada. This practice was undertaken with the knowledge and direction of the highest management levels of WestJet and wasn't halted until discovered by Air Canada."

WestJet said it "sincerely regrets having engaged in this practice and unreservedly apologizes to Air Canada and Robert Milton," who is chairman, president and chief executive of ACE Aviation Holdings Inc. (ACE.B.T), the holding company parent of Air Canada.

WestJet has also agreed to make a donation of C$10 million in the name of Air Canada and WestJet to children's charities across the country.

The two airlines said all legal proceedings between the parties have been terminated.

Aeroplan devising new way to cash in points
A $20-million computer system will enable better seat choice at higher cost
29 May 2006
The Globe and Mail

The heart of Aeroplan Income Fund's new grid for redeeming rewards will be a $20-million computer system that scrutinizes supply and demand for Air Canada flights before luring consumers to cash in their points.

Rupert Duchesne, Aeroplan's chief executive officer, said the loyalty company is developing the electronic brains behind what it hopes will be a popular new schedule of higher levels of reward miles required to book seats. “It sounds easy, but it's actually a very complex computer program to pick each of those seats out of the Air Canada reservation system, price them and make them available on a grid to the Aeroplan member.”

Unless consumers book months ahead, seats are often frustratingly elusive to reserve under the current reward system, which sets aside 8 per cent of Air Canada seats for the low-cost “Classic” category.

Aeroplan plans to introduce an escalating scale of points by year-end. It will outline how many extra miles are needed to book unsold seats in economy and business class, based on supply and demand, beyond that 8-per-cent limit on Classic rewards. “The project is pretty much exactly on schedule, but we haven't picked a brand name yet. It will be launched some time this fall. The time we need it to work perfectly and be totally in place is January, 2007,” Mr. Duchesne said.

During the first quarter of each year, Aeroplan sees a surge in bookings as consumers plan spring and summer vacations. In the first quarter of 2006, for instance, the volume of redemptions jumped 37 per cent from the final quarter of 2005.

Aeroplan, which holds its annual meeting today in Montreal, disclosed its plans a year ago to provide “unlimited access” to Air Canada seats this fall. The company is now within months of executing on its expansion strategy, running computer models before making final decisions.

A short-haul Toronto-Ottawa flight, under the existing basic Classic redemption level, will still cost 15,000 miles in the new system, while long-haul Vancouver-Toronto service will continue to cost 25,000 miles. Those examples are for the limited number of seats that are only available below the 8-per-cent Classic rewards ceiling.

The higher-cost “Avenue” economy-class rewards category, which currently reserves 7 per cent of Air Canada's seat inventory, will be cancelled. It will be replaced and expanded in a project that's internally code-named “Dynamic” at Aeroplan.

In total, 15 per cent of Air Canada seats are now set aside for Aeroplan members. Analysts forecast that Aeroplan-designated spots could effectively rise to 19 per cent after greater access to flights is granted to consumers by year-end. That means nearly one in five seats on a flight, on average during a month, could be designated for passengers flying on Aeroplan miles.

Avenue bookings in economy class in North America currently require 22,500 miles for short-haul flights and 37,500 miles for long-haul flights. Mr. Duchesne said the new Dynamic scale will likely start at lower figures than those amounts, but higher than the Classic level.

In general, the fuller the plane at the time of advance booking, the deeper consumers would have to dig into their Aeroplan accounts.

“Under Dynamic, it will be a sliding scale, depending on exactly when you book,” Mr. Duchesne said. “Each time we buy a more expensive seat, you have to pay more miles. Say you decide you want to leave this evening for Vancouver from Toronto. You can do it, but it might take twice as many miles than if you booked that six months ago. We're working that out.”

Montreal-based ACE Aviation Holdings Inc., parent company of Air Canada, owns 75.3 per cent of Aeroplan.

^^That is great news....and I really admire both companies for donating the money to charities

Aeroplan LP looks to go global with reward deals
Likely to avoid troubled U.S. carriers Expands in three Canadian directions
Bloomberg news and Canadian Press
30 May 2006

Montreal -- Aeroplan LP, the rewards program for Air Canada, may acquire overseas frequent-flier businesses and customer-loyalty companies to expand internationally, chief executive officer Rupert Duchesne says.

"We will actively consider both a domestic or an international opportunity for growth if one presents itself," Duchesne said yesterday during Aeroplan's first annual unitholders' meeting.

Aeroplan will first focus on adding more partners in Canada before aggressively pursuing overseas expansion, Duchesne said at a news conference later.

Aeroplan, which is 75.3 per cent owned by Air Canada's parent, ACE Aviation Holdings Inc., with the rest held by the Aeroplan Income Fund, would consider acquiring "small marketing firms and services in Canada that would help us sell Aeroplan miles to commercial partners," Duchesne said.

The Aeroplan CEO said he would also look at buying other existing loyalty programs.

"We think we're experts in running loyalty programs ... and we can probably do it more efficiently."

Duchesne said the company could also purchase frequent-flier programs and make substantial overhead cost savings.

But he said he would look at other markets around the world that are similar to Canada's, not south to the United States, where several major airlines are in bankruptcy protection and face further cost cutting and streamlining.

"I think it's rather unlikely we would look at airline programs in the U.S. because the industry is still going through a substantial restructuring," he said.

Aeroplan also announced three new loyalty programs yesterday with XM Canada, insurer ING Canada Inc. and CorporationCentre.ca.

XM Canada, which calls itself Canada's leading satellite-radio provider, has signed a multiyear deal to allow subscribers to earn Aeroplan travel "miles" starting in June 1, the companies said in a release.

The travel credits are available through radio hardware packages. Offers are based on the package selected and a one-year service agreement.

"Partnering with Aeroplan is one of the ways XM Canada intends to deliver premium services to our subscribers and stoke aggressive growth in the Canadian market," said Stephen Tapp, XM Canada president and chief operating officer.

Aeroplan also announced it has an agreement with ING Canada to offer Aeroplan Miles on certain insurance products offered by the company's insurance subsidiaries. That agreement takes effect in September.

Adding Aeroplan miles to a "fairly normal financial product can make a big difference in customer loyalty," Duchesne said.

The third agreement involves CorporationCentre.ca, which calls itself Canada's leader in the online incorporation and corporate maintenance service industry for small and mid-sized businesses. The company has started offering Aeroplan reward credits on select small business startup services.

Duchesne also expressed satisfaction with the performance of Aeroplan since it made its debut on the Toronto Stock Exchange almost a year ago.

He said the company made some fairly aggressive declarations when it went public in the middle of last year.

"We said there would be two or three significant partner announcements by the middle of this year and, touch wood, we're pretty much on track for that," Duchesne said.

"We've probably delivered pretty much what we said we would.

"We've appreciated roughly 30 per cent in a year since our issue, and I think that's pretty good performance."

Aeroplan members earn rewards through the company's network of more than 60 partners in the financial, retail and travel sectors.

Milton lets Air Canada soar again: Turnaround
Chris Sorensen
3 June 2006
National Post

It's not often an airline CEO gets to tell his competitors what to do. It's even rarer for one to ask for -- and receive -- a public apology.

And yet, that's exactly what Robert Milton, the chief executive of Air Canada's parent, ACE Aviation Holdings Inc., managed to secure this week: WestJet Airlines Ltd. apologized for its "unethical and unacceptable" behaviour in a bid to end a $220-million lawsuit stemming from its campaign of Internet snooping.

It was the latest in a recent string of personal and professional victories for Mr. Milton, leaving some to speculate he may be composing the final verses of his swan song at Air Canada.

"He's not only turned the air carrier around and broke all kinds of new ground," but he got his arch-rival to admit wrongdoing and say sorry in a very public way, said Rick Erickson, a Calgary-based aviation consultant.

To leave now, some observers say, would be analogous to an athlete leaving at the top of his game or an actor making the decision pull the plug on a hit sitcom-- Seinfeld comes to mind -- while audiences are still salivating for new episodes.

Mr. Milton, 45, has already said he plans to make his exit "sooner rather than later" because the job is no longer as fun as it once was, although he has not let on when he may actually step down.

His list of achievements since taking Air Canada's helm in 1999 are impressive. In just over six years he has managed to thwart a hostile takeover attempt, orchestrate a difficult merger with the former Canadian Airlines and then shepherd Air Canada through the aftermath of 9/11 and SARS, as well as the company's court-protected restructuring.

While he can be fairly criticized for flying the airline into bankruptcy in the first place, there is little doubt Air Canada emerged a much stronger and more formidable competitor then it was. It has since raised hundred of millions from the partial spin-offs of its Aeroplan loyalty program and regional carrier Jazz and is in the midst of overhauling its fleet to make itself a more viable international carrier.

Of course, Mr. Milton would likely be the first to acknowledge that his current perch is an incredibly fragile one given the notoriously turbulent industry in which Air Canada operates. There will always be another hurricane that pushes up fuel prices or another upstart competitor that threatens to depress margins with lower fares.

There are also legitimate questions about whether Air Canada's most serious problems have actually been fixed.

"A lot of the surface issues have changed and there have been a few small victories," said Marc-David Seidel, a business professor at the University of British Columbia's Sauder School of Business. "But in terms of fundamental changes, there is still a lot of work that Air Canada needs to do be a competitive international carrier."

Building up international routes, improving customer service and further lowering costs are key challenges for the airline, Mr. Seidel said.

That's particularly the case as Air Canada faces the prospect of competing with newly restructured U.S. airlines on international routes and, eventually, in the North American market as Canada and the United States gradually move toward a true open skies model.

In fact, sources familiar with Air Canada's business warn that the airline's cost structure, though much lower than it was prior to its restructuring, is still too high to make its business sustainable over the long-term.

Karl Moore, a business professor at McGill University, said he believes Mr. Milton is likely to stick around to oversee the spin-off of the airline's maintenance unit, scheduled to take place some time next year, and perhaps even an IPO of the airline itself.

"Air Canada will be a big part of his legacy, but I don't get the sense that he's preoccupied with that right now," Mr. Moore said.

Perhaps more important is for Mr. Milton to ensure that Air Canada will be left in capable hands when he finally does decide fly off into the sunset -- something that appears to have already been taken care of with the hiring of Montie Brewer, now Air Canada's CEO, in 2002 and last year's decision to bring aboard Brian Dunne, formerly of Aer Lingus, to act as ACE's chief financial officer.

"The game is never over," Mr. Moore said. "Air Canada is never going to be able to package everything up and tie a ribbon on it and say, 'We're good for the next 20 years.' "

Airline tightens carry-on limits
Air Canada seeks to reduce fuel cost
Emphasis will be on Asian routes
Rick Westhead
Toronto Star
10 June 2006

Air Canada is imposing stricter new weight limits on passengers' carry-on luggage.

Like every carrier, Air Canada is battling to pare costs as the price of jet fuel has skyrocketed in recent months. In an effort to lighten each plane's load, the airline has tried measures ranging from dumping empty wine bottles in the middle of a round trip and, in one high profile experiment, even stripped paint off the fuselage of one plane.

With the busy summer flying season now at hand, the ACE Aviation Ltd. unit has shifted its gaze to the check-in counter.

In a memo sent this week to employees, Air Canada president Montie Brewer wrote that this month Air Canada would introduce policy changes including one that will limit passengers from bringing more than two bags each weighing no more than 50 pounds (22.7 kilograms) on any flight. (Routes to Japan and Brazil will be exempt, while the airline said it will stress enforcement of limits on Asian flights.)

"One area where we all need to make a better effort at standardizing our policy is the enforcement of carry-on baggage policy for size, weight, quantity, whether verifying our customers' bags or when travelling ourselves," Brewer wrote. "June is a transition period, for our customers and for us, where we get used to and train ourselves to the reality of simplifying the way we do business in a high-cost environment."

Brewer also cited a recent Ipsos Reid survey conducted for the company that said the airline's process for boarding and removing luggage is showing signs of improvement. "Baggage handling is one area we've been struggling with and where we need to continually focus on to improve our track record," Brewer wrote.

Air Canada may be under more scrutiny to cut fuel costs in recent days. When the carrier recently raised fuel surcharges, rival airline WestJet Airlines Ltd. didn't follow suit.

^^ I'm going to Europe and is forced to take Air Canada (actually booked at SAS but "operated by Air Canada"). I plan to only bring a backpack which I know can easily fit into WESTJet's overhead compartments. Air Canada better allow me to bring that backpack as a carry on because they are so famous for loosing luggages.... :rant:

Air Canada chief says better service behind rebound
Best outlook in 15 years, Milton says
Calls flexibility key to turnaround
Canadian Press
15 June 2006

New York -- After emerging from bankruptcy-court shelter last year, Air Canada is thriving where so many other airlines have failed by giving customers what they want, says Robert Milton, chairman and CEO of parent company ACE Aviation Holdings.

"I've been at this 15 years and I do not remember a revenue picture like this over that period," Milton told the Merrill Lynch Global Transportation Conference.

The airline has been able to meet the competition head-on by providing customers the flexibility to select the fare and services that meet their needs, he said.

A simplified company website shows customers various fare options, he noted. They can then personalize their flights by purchasing food, or saving if they have no luggage.

Milton said the company plans to continue offering new ticketing options, such as multi-flight passes and unlimited travel to certain destinations, in an effort to lure customers away from the websites of wholesalers and travel competitors.

By upgrading its fleet, Air Canada will provide customers with individualized video entertainment options and direct service to new destinations.

Asked about his own future, the CEO said there are still things he wants to complete before he flies into the sunset and leaves the airline.

"You don't go on doing this forever and forever," said Milton, who has been with the airline since 1992.

Air Canada expands service to hot spots
Growing regions get more flights P.E.I. reduction will continue
Jonathan Montpetit
Canadian Press
17 June 2006

MONTREAL -- Air Canada is increasing its flight offerings abroad and to Canada's west as the carrier tries to capitalize on booming economies. Canada's largest airline said it will continue expanding its service this summer with more than a dozen new non-stop services to destinations within Canada, the United States and China.

The carrier will offer direct flights from Toronto to Shanghai beginning today, and increase its Toronto-Beijing service to daily from three times a week. It will also begin non-stop services from Montreal to Denver and Mexico City.

However, the company said that while it was increasing its overall service to Atlantic Canada, it won't resume year-round service from Toronto to Charlottetown.

Yesterday's announcement, contained in the company's latest update, comes on top of new services from Calgary to New York and from Fort McMurray, Alta., to Toronto.

Ben Smith, Air Canada's vice-president of network planning, said rapidly expanding economies in Asia and Alberta have increased demand for better service to those areas.

He said the new offerings were made possible by recent upgrades to the company's fleet.

Along with a revitalization program aimed at making its older planes more comfortable, Air Canada recently received 15 new E175 jets on order from Brazil's Embraer. He said a booming oil industry has caused the company to consider destinations it once thought unprofitable.

"Fort McMurray non-stop to Toronto, that's something I don't think anyone would have dreamed up a year or two ago, and we're now doing that on a daily basis," he said, adding that new routes to Denver, Calgary and Edmonton all reflect increased demand due to the oil industry.

Air Canada expands service to China with launch of new non-stop, Toronto-Shanghai flights

MONTREAL, June 17 /CNW Telbec/ - Air Canada is strengthening its position as the leading North American carrier to Asia with the departure today of flight AC087, its new non-stop service between Toronto and Shanghai.

"This new route directly connects the dynamic cities of Shanghai and Toronto, further enhancing Air Canada's already extensive service to China and Asia," said Ben Smith, vice-president of network planning at Air Canada.

"Shanghai has been long regarded as a gateway to the Orient. Air Canada is pleased to provide customers with more flexibility and choice when travelling to or from the region and making connections on our global network beyond."

The new three-times weekly service is the only non-stop flight from eastern North America to Shanghai and offers the fastest flying time from Toronto. With an elapsed time of 14 hours, 45 minutes westbound and 13 hours, 40 minutes eastbound, the route will save travellers three hours in each direction compared to the Vancouver routing. The flight will be operated using a 285-seat, A340-300 aircraft.

Flights will depart Toronto at 2:40 p.m. Tuesday, Thursday and Saturday, and flight AC 088 will return from Shanghai and arrive in Toronto at 8:35 p.m. Wednesday, Friday and Sunday.

With the addition of this service Air Canada now flies 13 routes to eight major Asian cities. This includes one flight daily from Toronto and Vancouver to Beijing, Hong Kong, Tokyo and Shanghai, two flights daily from Vancouver to Osaka, one flight daily from Toronto to Delhi, ten flights weekly from Vancouver to Seoul, three flights weekly from Toronto to Seoul (between June 16 and October 18), and from Vancouver to Taipei three flights weekly (increasing to five weekly from June 25 to September 10 operated by EVA Air).

WestJet Announces More Convenient Gates within Terminal 3 in Toronto

CALGARY, ALBERTA--(CCNMatthews - June 15, 2006) - WestJet (TSX:WJA) announced today that it will be consolidating its domestic and international charter Toronto operations in Concourse C at Terminal 3 in Toronto Pearson International Airport as of June 16, 2006.

The gates provided in Concourse C will provide additional convenience for those guests making connections on WestJet's domestic flights as their location enables travellers to do so more quickly. WestJet guests will have the shortest walking distance between their check-in counter and departure gate compared to guests of other airlines serving Toronto.

WestJet's Vice-President, Airports, Dale Tinevez, commented today: "We are thrilled at the prospect of having our arriving and departing domestic and international charter flights at gates that are closer together as this will allow us to continue delivering our outstanding on-time performance.

"This is a great move for us as the GTAA clearly acknowledges our growth in Toronto to more than 300 flights per week with WestJet representing 86.9% of total enplaned domestic guests in Terminal 3."

"Our special thanks go to the GTAA for understanding our company's determination to present our guests with the best customer service available in the industry as we continue to grow. Establishing these preferential gates serves as yet another example of how WestJet is striving to meet the growing needs of our guests travelling through Canada's busiest airport," added Tinevez.

Starting June 16, 2006, all domestic and international charter WestJet flights from Toronto will operate from Concourse C in Terminal 3 at Toronto's Pearson International Airport. Compared to other areas of Terminal 3, Concourse C offers more retail, food and beverage outlet choices for guests.

Marking its tenth anniversary this year, WestJet is Canada's leading low-fare airline offering scheduled service throughout its 33-city North American network. Named Canada's most respected corporation for customer service in 2005, WestJet pioneered low-cost high-value flying in Canada. With increased legroom and leather seats on its modern fleet of Boeing Next-Generation 737 aircraft, and live seatback television provided by Bell ExpressVu on the majority of its fleet, WestJet strives to be the number one choice for travellers.

http://www.globalphotos.org/toronto/20060613/IMG_0521.jpg

http://www.globalphotos.org/toronto/20060613/IMG_0558.jpg

http://www.globalphotos.org/toronto/20060613/IMG_0557.jpg

http://www.globalphotos.org/toronto/20060613/IMG_0556.jpg

Iv'e read somewhere that air canada is planning on starting a service from montreal to tel aviv, any info on that?

Iv'e read somewhere that air canada is planning on starting a service from montreal to tel aviv, any info on that?
There used to be flights between Tel Aviv and Montreal (route began in 1998) but that route was dropped in 2000 due to low demand.

according to wikipedia, theyr'e starting the flights in late 2006
http://en.wikipedia.org/wiki/Ben_Gurion_International_Airport
go to "airlines that fly to ben gurion" and look at the air canada destenations
but it could be wrong

according to wikipedia, theyr'e starting the flights in late 2006
http://en.wikipedia.org/wiki/Ben_Gurion_International_Airport
go to "airlines that fly to ben gurion" and look at the air canada destenations
but it could be wrong
I wonder where did they get that information? I didn't see an Air Canada press release or the industry journals talking about it. In fact, El Al just decided to reduce their frequencies to Toronto due to extraordinary landing fees.

Air Canada pilot fights mandatory retirement
The Globe and Mail
BRENT JANG
00:00 EDT Monday, July 03, 2006

A former Air Canada first officer wants the carrier to raise the mandatory retirement age for pilots to 65 from 60, part of a growing chorus in the cockpit accusing the airline of engaging in age discrimination.

"I should still be flying for Air Canada," said George Vilven, 62, from his home in Airdrie, Alta., just north of Calgary. He said his "cognitive and motor skills" as the second pilot at the controls were in top form when Air Canada forced him into retirement after he turned 60 in August, 2003.

Mr. Vilven's complaint is scheduled to be presented in January in Ottawa to the Canadian Human Rights Tribunal, which has set aside 10 days to hear the case.

A group of pilots who belong to the Fly Past 60 Coalition is supporting Mr. Vilven's retire-at-65 campaign. Coalition members include Raymond Hall, an Air Canada pilot who turns 57 on Wednesday, and several other pilots who are approaching 60 or recently turned 60.

Mr. Hall, who joined Air Canada 33 years ago, said he will have no choice but to leave the airline in July, 2009, unless the tribunal finds that the carrier is discriminating against its pilots on the basis of age.

Air Canada's current retirement policy is "contrary to his desire to exercise his right to remain employed," the coalition said in a recent submission to the tribunal.

Physical examinations every six months are already required for Air Canada pilots over 40, and that process would ensure that pilots above 60 stay at the top of their game, the coalition maintains. Regular "proficiency checks" for all pilots also ensure safety, it adds.

The International Civil Aviation Organization, an agency of the United Nations, may recommend this November that the retirement age for pilots be increased to 65 from 60, as long as one of the pilots in a two-pilot crew is younger than 60. "The current policy has been in place since the 1960s and needs to be revisited," Mr. Hall said.

Air Canada maintains that its retirement policy doesn't contravene the Canadian Human Rights Act. The country's flag carrier dismissed comparisons with smaller airlines that allow pilots to work under certain conditions beyond 60. For instance, Air Canada Jazz and WestJet Airlines Ltd. allow pilots to work only on domestic routes from 60 to 65, but those involve shorter hauls on average than Air Canada's extensive international network.

Air Canada points out major U.S. airlines continue to abide by the U.S. Federal Aviation Administration's age-60 retirement rule for pilots while numerous foreign carriers have retirement ages ranging between 55 and 60. "Air Canada is a major international, intercontinental airline whose pilots must meet the requirements of the countries to which they fly," it argues.

The Air Canada Pilots Association, which represents 3,100 members, conducted an April survey that indicated a sizable majority of the respondents want to keep the mandatory retirement age at 60. Of those who voted, 1,382 pilots supported the current system and 458 voted against it.

ACPA's master executive council supports Air Canada's stance of defending the existing retirement policy. "ACPA believes it is a benefit for pilots to be able to retire at age 60 with a full pension," the union said in a statement. "Retirees are not required to stop working entirely upon retirement. Many move on to other occupations, such as a flying instructor with Air Canada."

The union also argues that junior-level pilots are able to climb the seniority ladder faster when senior-level pilots retire early. The more experienced the pilot, the better the aircraft, routes, schedules and pay.

But the Fly Past 60 Coalition insists individual rights are being trampled. Air Canada captains who belong to the coalition include Grant Foster and David Powell-Williams, both 59. Recently retired captains seeking to be reinstated include Kenwood Green, George Iddon and Ray Thwaites, all 60.

If the Canadian Human Rights Tribunal sides with Mr. Vilven, the original complainant, "it is conceivable that some persons recently forced to retire may be allowed to come back to work in their previous capacity," the coalition said.

© The Globe and Mail

ACE Aviation sells $138 mln of US Airways shares

MONTREAL, July 7 (Reuters) - Air Canada parent ACE Aviation Holdings Inc. said on Friday it sold 2.75 million more shares of US Airways Group Inc. for net proceeds of $137.9 million.

ACE said it sold the shares at an average price of more than $50 a share through transactions on the open stock market. ACE said it still held 500,000 shares of US Airways, with a market value of $27.8 million.

ACE said total net proceeds from several sales of its holdings of US Airways shares amounted to $205.5 million.

Its original $75 million investment for 5 million US Airways shares was made in September 2005.

ACE is the holding company that has owned Air Canada since the airline, which is the country's largest, emerged from 18 months of bankruptcy restructuring in September 2004.

($1=$1.11 Canadian)

Air Canada flight lands in Rochester on bomb scare

NEW YORK, July 19 (Reuters) - An Air Canada flight to Toronto was ordered to return to Rochester, New York, on Wednesday, after some confusion over a bomb threat made by a person in custody, officials said.

U.S. Customs officials detained a man and a woman, believed to be Sri Lankan, who tried to board the flight and were suspected of carrying fake Canadian passports, said Jarrod Agen, a U.S. Department of Homeland Security spokesman.

The flight then departed for Toronto. During questioning in custody soon after, the detained woman began complaining of chest pains and said she needed her bag which had been loaded on board the departed flight, Agen said.

"The male (in custody) also made a confusing remark about a possible 'bomb,' so out of caution, the plane was returned to Rochester airport," he said.

Officials experienced a "significant language barrier" in attempting to communicate with the couple, he said.

There were 11 passengers on board the plane, including nine passengers and two crew members. No injuries were reported.

Air Canada to offer non-stop seasonal service between St. John's, NL and London, U. K., with daily flights during summer peak travel

MONTREAL, July 20 /CNW/ -- MONTREAL, July 20 /CNW Telbec/ - Air Canada announced today seasonal non- stop service between St. John's, NL and London, U.K. beginning April 6, 2007.

Air Canada's service to London will operate three times weekly on Wednesday, Friday and Sunday in April 2007, increasing to five times a week in May 2007, and to daily service from mid-June to September 2007. Air Canada flight AC830 will leave St. John's at 12:55, arriving in London at 21:25, and flight AC831 will leave London at 22:40 arriving in St. John's at 00:40.

"The people of Newfoundland and Labrador have told us loudly and clearly that they value a non-stop link to the U.K. and we believe we have found a creative solution that meets demand," said Ben Smith, Vice President, Network Planning, Air Canada. "With this service we will be able to offer the convenience of daily non-stop service to London for summer peak travel."

The carrier will operate the route using newly refurbished 120-seat Airbus A319 aircraft in a two-cabin configuration offering a choice of Executive Class and Economy service. The A319 jets to be deployed on this route feature Air Canada's new personal entertainment system currently being introduced fleet-wide with 8.9-inch wide digital in-seat monitors and touch- screen controls offering audio and video on demand programming at every seat. Other features include Air Canada's new seating and cabin design with in-seat power within reach of every customer.

From Newfoundland and Labrador, Air Canada and Air Canada Jazz offer more than 159 scheduled flights each week to 9 destinations across Canada, more than any other carrier.

Air Canada provides scheduled and charter air transportation for passengers and cargo to more than 150 destinations on five continents. Canada's flag carrier is the 14th largest commercial airline in the world and serves more than 30 million customers annually. Air Canada is a founding member of Star Alliance providing the world's most comprehensive air transportation network.

I like the idea of the babybusses crosing the pond....makes you wonder if WS will be looking at the sucess of this route, and maybe start transatlantic ops......

From: http://www.theglobeandmail.com/servlet/story/LAC.20060727.TORBRIEFS27-4/TPStory/TPNational/Ontario/
___________________
Port Authority threatens to ban Jazz from airport
OLIVER MOORE
The Toronto Port Authority is threatening to ban Air Canada discount carrier Jazz from the island airport, asserting that a new deal must be reached.

"We are concerned that Jazz is apparently selling tickets," reads a statement from Port Authority CEO Lisa Raitt. "We have repeatedly told you that we will not permit Jazz to operate to or from the TCCA until you have entered into a contract with us."

Jazz spokeswoman Debra Williams said that flights would go ahead as scheduled, possibly starting Aug. 28.

So that new start-up airline (forget the name) is allowed to fly in YTZ, but Jazz is not.....

Porter Airlines is the name of the new airline. Jazz isn't because a new deal for landing rights hasn't been reached.

^^Ahh...thanks:D

Air Canada is one of the worst airlines in the world
and I am ashamed that it is our national airline

look at other national carriers, they have excellent service, reputation and comfort
all AC has is a reputation with nothing to back it up

Does anyone know what rating Skytrax has given Air Canada?

I must admit the last couple of times I flew Air Canada (internationally), I was impressed. I was expecting poor service, but was pleaseantly surprised.

Sri Lankans who triggered bomb scare on Air Canada flight plead guilty to using altered passports
31 July 2006

ROCHESTER, N.Y. (AP) - Two Sri Lankans who triggered a bomb scare aboard a commuter plane pleaded guilty Monday to using altered passports during an attempt to obtain political asylum in Canada.

Nayeem Sukkoor, 33, and Mercy Antony, 39, were trying to board an Air Canada flight to Toronto on July 19 when officials at Rochester's airport became suspicious about their travel documents. While being questioned, Sukkoor apparently made a confusing remark about explosives in his luggage.

The plane, which had taken off with 11 passengers, was diverted back here as a precaution when it was learned that one of their bags was aboard, officials said. No explosives were found.

Sukkoor's comment was later attributed to a language problem. The pair were trying to flee their volatile homeland and did not pose a threat to the public, authorities said.

U.S. District Judge Charles Siragusa sentenced Sukkoor and Antony to the amount of time they have already served, a penalty that federal prosecutors deemed appropriate. But the pair remained in custody pending immigration hearings in Buffalo, N.Y., on whether they should be deported or granted asylum in the United States.

They were prevented from boarding the flight when officials learned the Canadian passports they were using had been reported as either lost or stolen in 2004. The passports had been altered with their photographs.

In court papers, a federal agent said Sukkoor and Antony told of leaving Sri Lanka six months ago in an attempt to travel to Canada to seek political asylum. Their journey took them to Malaysia, South Africa, Brazil, Chile, Easter Island, Tahiti and finally to Los Angeles, where they caught a bus to Rochester.

They are members of Sri Lanka's ethnic Tamil minority.

A recent surge of violence in Sri Lanka's northeast corner is threatening to re-ignite a civil war in the island nation after a four-year truce. Rebel forces want to create a separate homeland for Tamils, saying they face discrimination from the majority Sinhalese.

WestJet profit surges despite sky-high fuel costs
By Jeffrey Jones

CALGARY, Alberta, Aug 2 (Reuters) - WestJet Airlines Ltd.'s second-quarter profit surged almost tenfold as a jump in passenger numbers and higher fares more than made up for sky-high fuel costs, Canada's No. 2 airline said on Wednesday.

WestJet, which has been adding capacity and frequency despite a 32 percent jump in oil prices, should enjoy rising profit margins for the rest of the year along with higher demand for air travel, Chief Executive Clive Beddoe said.

Last year, results were pressured by the holdover effect of cheap tickets sold before the financial failure of undercutting no-frills rival Jetsgo. Now, the bulk of the domestic market is served by WestJet and the restructured Air Canada.

"We are seeing continued improvement in yields. It's a slow and steady improvement and I think it's the appropriate way to deal with these costs," Beddoe told analysts and reporters.

"I think that the market has not been 'de-stimulated' by the higher fares and I think that's by virtue of the fact that fares have increased sort of steadily and marginally."

Jet fuel makes up 27 percent of the company's operating expenses, and fuel costs rose 16.5 percent in the quarter as world oil prices clung to record highs.

WestJet kept operating costs in check with its move to more fuel-efficient Boeing 737-600, -700 and -800 series jets from older models, the last of which was retired in January, he said.

In the quarter, WestJet, which operates discount flights to 33 North American cities, earned C$22.4 million ($19.8 million), or 17 Canadian cents a share, up from a year-earlier C$2.3 million, or 2 Canadian cents a share.

That beat an average estimate of 13 Canadian cents a share among analysts surveyed by Reuters Estimates.

Profit was reduced by the company's C$15.6 million settlement in May to end a long-running lawsuit filed by Air Canada over allegations that WestJet employees surreptitiously gained access to their rival's confidential operating data.

However, corporate tax cuts added C$11.2 million to earnings, WestJet said.

Revenue rose by nearly a third to C$425 million from C$327 million.

WestJet shares were off 20 Canadian cents at C$10.30 on the Toronto Stock Exchange on Wednesday, a drop of about 15 percent since the start of the year. Shares in ACE Aviation Holdings , Air Canada's parent, are down about 25 percent on the year.

Beddoe's optimistic outlook for yields in the rest of 2006 counters a more uncertain view among some analysts.

The company posted a small, half-percentage-point improvement in second-quarter yield, or the amount of money the airline clears on each seat it sells.

"It was a relatively weak number, especially given the fact that in the second quarter of last year the pricing environment was still somewhat negatively affected by Jetsgo," said Versant Partners analyst Cameron Doerksen.

In the quarter, the airline boosted overall capacity by 18.5 percent.

Beddoe said he expects demand for air travel will stay strong, allowing the airline to withstand the high fuel costs and build its business in Canada and the United States.

($1=$1.13 Canadian)

Air Canada reports July traffic
System passenger load factor at 83.6 per cent, matching July 2005 record

MONTREAL, Aug. 3 /CNW Telbec/ - Air Canada reported a system load factor
of 83.6 per cent in July 2006. The mainline carrier flew 0.8 per cent more revenue passenger miles (RPMs) in July 2006 than in July 2005, according to
preliminary traffic figures. Overall, capacity increased by 0.8 per cent, resulting in a load factor of 83.6 per cent, the same as in July 2005. Jazz, ACE's regional subsidiary, flew 49.2 per cent more revenue passenger miles in July 2006 than in July 2005, according to preliminary traffic figures. Capacity increased by 51.1 per cent, resulting in a load factor of 72.8 per cent, compared to 73.7 per cent in July 2005; a decrease of 0.9 percentage points.

System traffic, on a combined basis for Air Canada and ACE's regional carrier, Jazz, rose 3.3 per cent on a capacity increase of 3.7 per cent, resulting in a load factor of 82.7 per cent. North American traffic, on a combined basis, rose 6.5 per cent.

"In July, Air Canada mainline had an 83.6 per cent load factor, tying the record of July 2005. All market segments performed well, led by the Pacific with our expanding China service," said Montie Brewer, President and Chief Executive Officer. "The fact we are still operating at record levels demonstrates that we are managing capacity in line with demand, something we will continue to do as we move through the second half of 2006. At the same time, we will stay focused on performing well operationally and delivering superior customer service. I thank our employees for their ongoing hard work in delivering record load factors".

This discussion contains certain forward-looking statements, which involve a number of risks and uncertainties. As a result of many factors including acts or potential acts of terrorism, international conflicts, government regulations and government mandated restrictions on operations and pricing, fuel prices, industry restructuring, labour negotiations, the economic environment in general including foreign exchange and interest rates, the airline competitive and pricing environment, industry capacity decisions and new entrants as well as external events, actual results could differ from expected results and the differences could be material.

Data : http://micro.newswire.ca/release.cgi?rkey=1408030285&view=13213-0&Start=0

Jazz Air profit jumps with capacity, cost control

CALGARY, Alberta, Aug 10 (Reuters) - Second-quarter profit at Jazz Air LP, Air Canada's regional carrier, jumped more than 50 percent due to a big jump in capacity and tight cost control, its publicly traded income trust said on Thursday.

Jazz Air Income Fund , which went public early this year in a big restructuring of the country's dominant carrier, said the regional airline earned C$36 million ($32 million), or 29 Canadian cents per trust unit, up from year-earlier C$24 million, or 24 Canadian cents a unit.

Distributable cash, the money trusts use to make payouts to their unit holders, rose 72 percent to C$34 million from C$20 million. Operating revenue was C$340 million, up 47 percent from C$231 million in the second quarter of 2005.

The income fund has a 20.3 percent interest in Jazz Air LP. Air Canada's parent company, ACE Aviation Holdings , owns the remainder.

Another spin-off, Aeroplan Income Fund , which has a minority stake in Air Canada's frequent flyer program, reported a 25 percent increase in profit on Thursday.

ACE Aviation is slated to report its consolidated second-quarter results on Friday, and analysts have predicted a sharp increase based on higher fares, a brisk travel market and gain from the $206 million sale of shares in US Airways Group

Jazz said unit costs fell in all categories except fuel and rent.

The carrier added 44 regional jets to its fleet in late 2005 and the first half of 2006, which lifted aircraft rent costs by $18 million but increased capacity by 67 percent, the fund said.

Fuel costs, which are reimbursed by Air Canada, jumped by C$34 million due to record oil prices.

Air Canada Jazz units rose 3 Canadian cents to C$9.01 on the Toronto Stock Exchange on Thursday. That represents a drop of more than 6 percent since the start of the second quarter.

Air Canada parent plans spinoff as profit jumps

CALGARY, Alberta, Aug 11 (Reuters) - ACE Aviation Holdings Inc. plans to spin off Air Canada, the country's top airline, and jettison its aircraft repair unit to wring more value for investors, it said on Friday as it reported a 40 percent jump in profit.

ACE aims to follow successful initial public offerings of its Aeroplan frequent flyer program and its Jazz Air regional airline by offering a minority stake in its main entity, Air Canada, in an IPO late this year, it said.

That, along with an outright sale of Air Canada Technical Services and the possibility of further offerings of equity in Aeroplan and Jazz, could eventually mean an end to the holding company structure, ACE Chief Executive Robert Milton said.

Investors lauded the plan, driving ACE's A-series shares up C$1.83, or 6.5 percent, to C$29.83 on the Toronto Stock Exchange, their highest level in almost a month. The B-series stock surged C$1.95, or 7 percent, to C$29.85.

Montreal-based ACE became Air Canada's publicly traded parent in October 2004 following the airline's lengthy restructuring under bankruptcy protection.

The current plan is to reduce ACE's capital by up to C$2 billion ($1.8 billion) over an indefinite period. Shareholders are slated to meet and review the arrangement in October.

"We have definitely gotten our heads past the possibility that in time there is no ACE, so there is no preconceived outcome there. We're just trying to drive it to get the best result for the shareholder," Milton told analysts.

The various operating entities can benefit from relationships with each other through operating contracts rather than cross ownership, executives said.

Milton said Aeroplan and Jazz, in which ACE still has majority stakes, had become strong stand-alone firms and Air Canada, the world's 13th largest airline, should also thrive in what looks like a "generally good" industry environment.

ACTS, which maintains, repairs and overhauls aircraft, has generated weaker financial results than its sister units.

Private equity companies as well as other aerospace industry players have shown interest in picking up stakes in the entity, he said.

Desjardins Securities analyst Nadi Tadros pegged values per ACE share of C$8-C$12 for the mainline carrier and C$6-C$7 for ACTS, but in a research note said ACE's conglomerate discount could widen to up to 20 percent from about 10 percent.

Meanwhile, ACE said its jump in second-quarter profit was aided by a big gain from the sale of US Airways shares and higher fares, which offset surging fuel costs.

It earned C$236 million, or C$2.05 a share, up from C$169 million, or C$1.50 a share, a year earlier.

The latest quarter included a pretax gain of C$100 million on the sale of 3.25 million US Airways Group shares. Net income also included a foreign exchange gain of C$107 million.

Operating income was C$181 million, up C$3 million from the second quarter of 2005. Revenue was C$2.7 billion, up 8 percent from C$2.5 billion.

It said system-wide yield improved by 3 percent, despite an increase in fuel costs of C$101 million, or 19 percent, as the airline's capacity rose 3 percent. Most of the capacity increase was on international and Western Canadian routes.

On Thursday, Aeroplan reported a 25 percent increase in net income and Jazz Air said profit jumped more than 50 percent.

($1=$1.13 Canadian)

U.S. open-skies treaty grounded for now
Air Canada awaiting antitrust ruling
ACE seeks more such agreements
Sep. 1, 2006. 07:01 AM
TARA PERKINS
Toronto Star

A new open-skies treaty with the United States that is expected to lead to lower ticket fares and more options for Canadians who want to fly abroad will not get off the ground Sept. 1 as originally announced, officials from Transport Canada said.

The deal, brokered last fall, has been stalled as Air Canada awaits antitrust ruling from the U.S. Department of Transportation allowing the airline to co-operate on international routes and pricing with United Airlines and other members of the Star Alliance. The deal is still expected to take effect later this year.

Meanwhile, some airline industry executives are pushing the government to sign similar "free trade" deals for the skies with other countries. That could boost tourism, lower ticket prices, give consumers more choice and help airports, they say.

While the Canadian government has now negotiated two open-skies agreements — it also has one with the U.K. — the United States has more than 70.

But the Conservative government appears more willing to take a free-market approach to air travel than previous governments, industry officials said.

This summer, Transport Minister Lawrence Cannon said he had asked the government to "aggressively explore opportunities for further liberalization and to develop a new international air policy to guide our future negotiations."

That's something that ACE Aviation Holdings Inc. vice-president Duncan Dee is likely looking forward to. ACE is the company that runs Air Canada.

Once the open-skies deal with the United States kicks in, Canadian airlines will be able to pick up U.S. passengers in American cities and take them to third countries, and vice-versa.

However, that doesn't mean that Air Canada can immediately begin a Los Angeles to Sydney flight — a route the Canadian airline has been eyeing — as Canada doesn't have a treaty with the Australians.

"The next hurdle will be for us to find those destinations and negotiate with their government to make sure we have the ability to do it from their perspective," Dee said.

Canada is expected to hold negotiations with Australia this fall, but that is not necessarily expected to result in a full open-skies treaty.

"We'd like to see a lot more action on open skies with nations around the world," says Jim Facette, chief executive of the Canadian Airports Council.

In addition to helping consumers, open-skies treaties could be a boon for Canada's $57.5 billion tourism industry, he argues.

Right now, there are restrictive agreements in place with many of the top 10 sources of overseas visitors to Canada, he says. For example, Japan is Canada's Number 2 source for overseas tourists, but a restrictive air regime means Canadian carriers have limited access to the market. He would also like to see treaties or better agreements with the European Union, Singapore, South Africa and other destinations.

Canada has numerous "air service agreements" dating back to the 1950s and 1960s, Facette said.

"Traditionally, these have been negotiated in a bilateral environment where they actually negotiate who gets to fly where and how many times," he said. "In an open-skies environment, you essentially get into an environment where it's similar to free trade."

The new open-skies treaty with the U.S. will be a two-way street, but Canadian industry officials say the bulk of the benefits will go to Canada.

"What this does is allow carriers to have greater opportunities to markets that are much larger than ours," Dee said. "Los Angeles to Sydney, Australia, that single market alone is probably the size of the entire Canada to Australia market, and so it allows Air Canada to participate in that."

Facette expects flight prices to drop as competition increases.

A Transport Canada official said the open-skies treaty is being delayed as Air Canada awaits approval of an application it made to the U.S. Transportation Department for global antitrust immunity.

The ruling will allow Air Canada to co-ordinate schedules and pricing with United Airlines and other Star Alliance members such as Lufthansa and Air New Zealand on flights between the U.S. and foreign destinations.

For example, Air Canada and United Airlines could co-ordinate their flight schedules from North America to Japan, to maximize efficiency.

Dee says that Air Canada is the airline with the most to gain from the U.S. open-skies treaty. "We're the single biggest foreign carrier to the U.S.," he said.

Rival WestJet is just dipping its toes into foreign markets now. WestJet vice-president Sean Durfy said the Canadian airline has talked to another air alliance, called Oneworld, and also to Cathay Pacific Airways Ltd. and a number of other airlines and organizations.

WestJet is not in negotiations with any of them yet, he said. "We're not able to do any type of interlining until we have the appropriate capability in our reservation system, which is still a couple years away."

hello guys. i hope you wouldn't mind me posting some photos of AC i took last month at HK.

Is this a A330?
http://www.imagestation.com/picture/sraid211/pd156e85d9974f74fdd5273a837097c96/ed85c4b7.jpg

http://www.imagestation.com/picture/sraid211/pce9278393b1c751f81a0e51364cad32c/ed85c3da.jpg

Hi Francis20, nice shots, Its an A340. :)

hello guys. i hope you wouldn't mind me posting some photos of AC i took last month at HK.

Is this a A330?
http://www.imagestation.com/picture/sraid211/pd156e85d9974f74fdd5273a837097c96/ed85c4b7.jpg

http://www.imagestation.com/picture/sraid211/pce9278393b1c751f81a0e51364cad32c/ed85c3da.jpg
Oh I don't mind at all! I rode on one of these A340s from Hong Kong to Toronto last year. It's the only route with PTVs for Air Canada right now.

http://www.globalphotos.org/hongkong/20051020/IMG_3519.jpg

http://www.globalphotos.org/hongkong/20051020/IMG_3521.jpg

:)

Nice.....btw, I am a little dissappointed with ACE's profit, they really only made 136 million, since the other 100 mill was from an investment.....but hey, a profit is a profit...

After 60 years, Newfoundlanders lose direct flight to Britain
Last Updated: Monday, September 4, 2006 | 3:27 PM NT
CBC News

Air Canada's last daily connection between St. John's and London departs on Monday — leaving Newfoundlanders without a direct flight to Britain for the first time since the Second World War.

Beginning on Tuesday, they'll have to fly to Halifax to catch another connection if they want to travel to Britain — at least, for the next eight months.

The carrier decided in May to cancel daily direct flights from St. John's to London's Heathrow Airport, saying they were no longer profitable.

After much public protest, the airline relented and said it would offer three direct flights a week in April of next year, five per week in May and daily flights between June and September.

Could hurt tourism, oil industry, ties with U.K.

But Newfoundlanders have warned that the loss of daily direct flights — however temporarily — will cause the tourist industry in the province to drop sharply and threaten their traditional links with the United Kingdom.

It could also affect the oil business, industry officials have warned.

Newfoundland and Labrador's lucrative offshore platforms undergoing repairs often need specialized equipment from the European mainland.

'In the very worst-case scenario it could actually result in lost production. [On] any given day that could mean 150,000 barrels of oil per day of lost production, roughly $15-million to $20-million worth of value per day.'-Oil industry spokesman Ted Howell, on the loss of the flight

Any delays in getting the equipment means lost money, the industry warned.

"The absence of that flight means the equipment is not available on a next-day basis," said Ted Howell, the president of the Newfoundland Ocean Industries Association.

"In the very worst-case scenario it could actually result in lost production. [On] any given day that could mean 150,000 barrels of oil per day of lost production, roughly $15-million to $20-million worth of value per day," he said.

St. John's airport seeks alternate carriers

Since the Air Canada announcement, officials at the St. John's International Airport Authority have been searching for an alternative carrier.

They have said the shortlist contains two possibilities, including one from Britain.

They have said they hope to have a daily route back up by the end of the year.

Has AC installed PTV's on their TOR-LONDON flights yet ? My brother is taking this flight tomorrow. His Flight from Dubai to London was with Emirates which is one of the best in the world.

Has AC installed PTV's on their TOR-LONDON flights yet ? My brother is taking this flight tomorrow. His Flight from Dubai to London was with Emirates which is one of the best in the world.
Their A330s and 767s don't have PTV's. Only the A340 has them I believe and they are flying the YYZ-HKG route.

What is WestJet of Air Canada? Thank you!

Has AC installed PTV's on their TOR-LONDON flights yet ? My brother is taking this flight tomorrow. His Flight from Dubai to London was with Emirates which is one of the best in the world.

The first 767 is coming out of the hanger with the new interiors in mid september. It is dedicated to be used on the YYZ-ZHR-DEL route. I guess your brother won't have PTVs if he travelled on AC at this time.

TORONTO

My brother arrived last week from Dubai and he impressed by AC service and leg room. He also liked new Terminal 1 at Pearson. AC uses airbus A-340 on LHR-YYZ route.
He was saying that Emirates's B-777's are short on Leg room.

My brother arrived last week from Dubai and he impressed by AC service and leg room. He also liked new Terminal 1 at Pearson. AC uses airbus A-340 on LHR-YYZ route.
He was saying that Emirates's B-777's are short on Leg room.Did it have PTVs?

Did it have PTVs?

The A340's would not have any PTVs. Air Canada said they wound not refurbish any of the A340s, since they will leave the fleet soon, when the B777s come in to the fleet starting next year. The only A340's that have PTVs are A340-500 which are only used on the YYZ-HKG route.

TORONTO

My brother arrived last week from Dubai and he impressed by AC service and leg room. He also liked new Terminal 1 at Pearson. AC uses airbus A-340 on LHR-YYZ route.
He was saying that Emirates's B-777's are short on Leg room.

I'm surprised...cause Emirates normally like to stuff their 777 10 abrest, opposed to the traditional nine, but they give the passenger more leg room....I think 34 inches...

Air Canada eyes India with new planes
21 September 2006
The Globe and Mail

Air Canada will have more flexibility next year when it takes delivery of its Boeing 777 planes, says Air Canada chairman Robert Milton.

The new aircraft will have a longer range, allowing Air Canada to fly to more destinations non-stop, Mr. Milton said today in Toronto at a transportation conference sponsored by RBC Dominion Securities Inc.

For example, the country's largest airline is considering introducing non-stop service from Toronto to Mumbai. Mr. Milton said that on top of the passenger fees, Air Canada would benefit from being able to carry cargo to and from India.

In addition to his role at Air Canada, Mr. Milton is also chairman and chief executive officer of Montreal-based ACE Aviation Holdings Inc., the parent company of Air Canada.

Air Canada emerged from bankruptcy protection two years ago.

Air Canada designated to operate services between Canada and Algeria

OTTAWA, Sept. 22 /CNW Telbec/ - The Honourable Lawrence Cannon, Minister
of Transport, Infrastructure and Communities, today announced the designation
of Air Canada to operate scheduled air services between Canada and Algeria
through code-sharing arrangements.
"Air Canada's designation sets the stage for the first scheduled air
service by a Canadian carrier between Canada and Algeria," said Minister
Cannon. "This service may increase the trade and tourism possibilities between
both countries."
Air Canada initially intends to operate third country carrier
code-sharing service to Algeria as part of a commercial cooperation agreement
with Lufthansa. Code-sharing is a type of air service through which an airline
sells seats in its name on the flights of another airline. It is a tool that
allows carriers to broaden their international networks and provide better
passenger access to the global marketplace.
Under the provisions of Canada's international air transportation policy,
all Canadian air carriers may apply to the Minister of Transport for
designation to operate scheduled international air services. This designation
has been made possible through the existing air transport agreement between
the Government of Canada and the Government of Algeria. The agreement was
negotiated recently and provides sufficient rights for Air Canada to operate
such services.

TORONTO

Yep, it's Toronto getting all the goodies again...

Vancouver gets NOTHING!!!! :sleepy:

We should have more new routes too.....I know the Vancouver-Guangzhou route is probably going to be set......I wonder if the 2010 Olympics will lead to opening of new routes........

I doubt one event can bring forth new routes immediately. However, the tourism spinoff expected after the world sees Vancouver in 2010 may help boost Vancouver's connectivity in the long run when airlines see profitable new routes that are sustainable.

ACE Aviation shareholders approve payout plan
By Robert Melnbardis

MONTREAL, Oct 5 (Reuters) - Shareholders of ACE Aviation Holdings Inc. approved a plan on Thursday to pay out up to C$2 billion ($1.8 billion) of the company's capital, including a spin-out of it key airline unit, Air Canada.

Robert Milton, chairman, president and chief executive of ACE, said shareholders voted 95.5 percent in favor of distributing more units of Aeroplan Income Fund , its rewards program, and moving toward the initial public offering of a minority stake in Air Canada, its mainline carrier.

The plan also envisages divesting ACE Aviation's technical services unit.

The Air Canada Pilots Association (ACPA), which represents Air Canada's 3,100 pilots, said on Wednesday they had asked a court to block the payout, largely because they think it would restrict the airline's ability to meet obligations to creditors.

"We believe ACPA strategy may be aimed at getting ACE to inject more capital into Air Canada as the mainline carrier is brought public over the coming weeks," Claude Proulx, analyst at BMO Capital Markets, wrote in a research note on Thursday.

An ACE Aviation spokeswoman said on Thursday the company would work toward achieving an outcome that is favorable to all stakeholders.

The company intends to ask a Montreal court on Friday morning for a final order approving the plan of arrangement. If approved, the arrangement would become effective on Oct. 13 and ACE hopes to distribute more Aeroplan units by the end of this year.

DEBT AND PENSION DEFICIT CONCERNS

At the shareholder meeting, Yohan Cherrier, an Air Canada flight attendant, told Milton he opposed the payout, arguing that he has suffered losses in investment returns and revenue through Air Canada's 2004 bankruptcy restructuring.

"You're going to be taking a distribution here of which you are a very specific beneficiary. You own a lot of shares," Cherrier said.

Air Canada had a pension deficit of some C$1.4 billion at the end of last year.

Fadi Chamoun, analyst at UBS Investment Research, said he expects ACE's first new distribution of its equity in Aeroplan would range from C$450 million to C$500 million. ACE currently owns about 75 percent of Aeroplan.

ACE also intends to sell its technical services division, which Chamoun estimates is worth C$584 million.

In a research report, Chamoun questioned whether a spin-off of Air Canada would unlock hidden value at ACE.

Based on a multiple of five times enterprise value to earnings before interest, taxes, depreciation, amortization and aircraft rent, Air Canada could be worth C$1.81 an ACE share, he wrote.

Since Air Canada emerged from an 18-month bankruptcy restructuring at the end of September 2004 to become the main operating unit of ACE Aviation, the airline has been posting strong profits on improving passenger traffic volumes, despite adding capacity to its network.

ACE Aviation shares have risen some 75 percent from their C$20 issue price and 31 percent from the C$26.75 they opened trade at in early October 2004.

Over the past month, ACE shares have risen some 18 percent.

In the third quarter, ACE shares outperformed rival WestJet Airlines Ltd. and the U.S. airline index, Ben Cherniavsky, analyst at Raymond James, wrote in a research note on Thursday.

ACE Aviation class A Shares fell 50 Canadian cents to C$35.20 on the Toronto Stock Exchange on Thursday afternoon. Its class B shares fell 53 Canadian cents to C$35.18.

Air Canada's first 767 has got the new interiors. Here it is. It looks sweeeet! Now everyone can also have a good view out the window. Well not the middle people.

http://www.airliners.net/open.file?id=1120995&TopOfYest=yes

http://www.jetphotos.net/viewphoto.php?id=5830218

TORONTO

WestJet Shrs Languish: Growth Outlook Remains Uncertain
By Monica Gutschi
13 October 2006

TORONTO (Dow Jones)--WestJet Airlines Ltd. (WJA.T) should be a "screaming buy" given its improved earnings outlook, its growing network and its brand-new fleet, one analyst said Friday.

But Ben Cherniavsky of Raymond James kept his rating on the Calgary-based discount carrier at outperform, noting in a research report that investors are nervous about recent changes at the company.

Chief among them are WestJet's transformation away from its low-cost roots, which has taken its business model closer to that of its main rival, ACE Aviation Holding Inc.'s (ACE.B.T) Air Canada.

Costs have increased as WestJet established a hub in Toronto's expensive airport, added leather seats and Live TV programming, and initiated services to transborder and international destinations. As well, its rapid growth in the 10 years since it began means it has essentially "saturated" the very-price-sensitive segment of the market, and has had to appeal to a wider audience.

And Cherniavsky said ongoing management changes, including the appointment of President Sean Durfy, increase the doubts about WestJet's direction. Durfy is still an unknown to investors, Cherniavsky pointed out, while the departure of several key staff members in the past two years at least partly reflect "an internal divergence of views about some of the changes WestJet has made to its corporate strategy."

All of that raises the level of uncertainty, he said, and has kept the stock languishing in a narrow range for most of this year.

In Toronto Friday, WestJet is up 5 Canadian cents to C$10.97, about midway between its 12-month low of C$9.18 and its 12-month high of C$13.55.

However, that is far below its record of C$21.13 reached in early 2004. More worrisome, Cherniavsky noted, the stock has "barely budged" despite a significant drop in oil prices this summer.

The increasing risk from the management and strategic changes, "have made the market very nervous about WestJet's future," Cherniavsky said.

"This company is still a great airline with an exceptional corporate culture and some interesting growth initiatives," he said. "However, in our view, the changes to WestJet's model that have been required in the pursuit of these new growth opportunities have increased the company's cost base, raised the complexity of its operations, and caused some tension in the management ranks."

Robert Fay of Canaccord Adams initiated coverage of WestJet on Friday with a "buy" rating and a C$14 target, noting the company trades at a discount to its peers because of its relatively small size and high leverage.

Fay said WestJet's financial performance has improved after a downturn in 2004 and early 2005, and will likely get better on strong demand, capacity addtions, low interest rates and its fleet-renewal program.

However, he said the key question for the company is what growth rate it can maintain given Canada's limited market. Outside of expanding its domestic network, the airline is expected to have a new reservation system in place by late 2007 that will allow it to establish links with other carriers. As well, it has the potential to increase ancillary revenues through WestJet Vacations and adding to "buy-on board" amenities.

Raymond James has had an investment-banking relationship with WestJet and Cherniavsky or a member of his household holds the shares. Canaccord Adams expects to have an investment-banking relationship with the company in the next six months but Fay doesn't own shares.

Union cautions passengers to heed work-to-rule campaign at Air Canada
12 October 2006

TORONTO (CP) _ The Canadian Auto Workers union is cautioning passengers to take heed of its work-to-rule campaign, designed to protest Air Canada's plans to lay off 300 employees this month at airports and call centres across the country.

The CAW has issued two pages of ``guidelines'' for working, including advising unionized members to blame Air Canada managers for long lineups if consumers complain.

A spokesman for ACE Aviation Holdings Inc. (TSX:ACE.B), the parent of Air Canada, said Thursday that so far the union has not disrupted operations.

But Raymond James Ltd. analyst Ben Cherniavsky said the CAW could make life difficult for management.

``If these work-to-rule orders are followed and proliferate, this could become very problematic for ACE's planned initial public offering of Air Canada,'' he said.

ACE shares rose 38 cents to $35.25.

ACE to spin out minority stake in Air Canada

MONTREAL, Oct 16 (Reuters) - ACE Aviation Holdings Inc said on Monday it plans to spin out a minority stake in Air Canada, its key operating unit and the country's biggest airline.

ACE said Air Canada will offer class A and B shares from treasury for gross proceeds of C$200 million ($175 million), followed by a secondary offering by ACE of Air Canada shares. ACE did not disclose the size of the offering in Air Canada, but said it will retain a majority interest in the airline.

Air Canada to launch non-stop service between Montreal and Rome

MONTREAL, Oct. 12 /CNW Telbec/ - Air Canada today announced that it will launch non-stop service between Montreal and Rome to meet peak seasonal travel demand. Beginning June 1, 2007 until September 30, 2007, the carrier will operate daily non-stop flights linking Canada's second largest city, and its extensive Quebec and Atlantic Canada network, with the Italian capital. Air Canada offers connecting flights via Rome to popular destinations in Italy operated by Air One, a Lufthansa partner airline. "The reintroduction of non-stop Air Canada flights between Montreal and Rome is great news for Montrealers and consumers in eastern Canada who will benefit from substantial time savings during the peak travel season to Italy," said Daniel Shurz, Vice President, Network Planning. "We look forward to offering this additional non-stop service to Europe from Montreal, which complements our year-round Toronto-Rome non-stop flights. Rome is our fifth European destination with non-stop service from Montreal, joining London, Paris, Frankfurt and Munich."
Air Canada's Montreal-Rome non-stop service will be operated using 207-seat Boeing 767-200 ER aircraft. With an eastbound flight time of eight hours, travellers will save more than two hours off alternate routings via Toronto or Frankfurt.

<<
Montreal Rome Rome Montreal
AC892 17:40 07:40 (+1) AC893 09:10 12:05
>>

Montréal-based Air Canada provides scheduled and charter air transportation for passengers and cargo to more than 150 destinations on five continents. Canada's flag carrier is the 14th largest commercial airline in the world and serves more than 30 million customers annually. Air Canada is a founding member of Star Alliance providing the world's most comprehensive air transportation network.

http://micro.newswire.ca/release.cgi?rkey=1410127147&view=13213-0&Start=0

Aeroplan changes come at a cost

Changes to Aeroplan's reward program announced this week mean more seats will be made available, but that added flexibility comes at a higher cost.
On Monday, the loyalty program announced changes that would see all seats on Air Canada flights open to members, up from the 8 per cent it used to set aside. Under the changes, if the number of seats alloted at regular points level get fill, members can use points for the remaining seats -- using more points.

To find out just how many more, the Star chose dates during the busy Christmas period for economy seats. For flights departing Dec. 20 and returning Dec. 27, there were seats available to Montreal, New York and London for the usual number of points.

But for popular destinations such as Miami and Vancouver, seats were available for 40,000 points -- a 60 per cent increase over the normal requirement of 25,000 points.

In announcing Monday's changes, Aeroplan said it wanted to give members more flexibility in using their points and encourage a more active program.

The company also introduced expiry dates on accumulated points. Members must now use them within seven years or they will expire. That comes into effect Jan. 1.

Starting July 1, 2007, members must also earn or redeem at least one point in a 12-month period to keep their account active. To re-activate an expired account will cost $30, and one cent per restored mile.

Aeroplan's changes brought about a strong negative reaction from members, said Kyle Murray, a marketing professor at the University of Western Ontario's Richard Ivey School of Business. Murray has studied loyalty programs like Aeroplan's.

Murray said he was quite surprised at the negative response when he listened to radio call-in shows and read newspaper websites. Many were “criticizing it as a betrayal of trust,” he said.

Murray said the changes won’t affect frequent flyers -- although they may not be happy -- but added that it’ll take more time for less-frequent users to earn the points and give them less time to use point.

“Companies have realized what they’ve created for themselves is a fairly substantial future liability and they’re trying to limit that but constraining the way they will make pay outs,” he said.

Murray said it will be interesting to see whether or not this backlash will push members to use other programs or fly other airlines.

Gillian Hewitt, spokesperson for the company wouldn’t comment on any negative feedback, but said Monday’s announcement showed that members are “engaged.”

http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&pubid=968163964505&cid=1161165739584&call_page=TS_Business&call_pageid=968350072197&call_pagepath=Business/News

Requiring activity every 12 months is quite unreasonable given many airlines around the world have adopted a 3-year grace period. They really want to unlock all the points stashed away in people's closests.

Did it have PTVs?

No but he didnt complain about Air Canada which is surprising.

Air Canada to face new language laws
SIMON TUCK
00:00 EDT Thursday, October 19, 2006

OTTAWA -- The federal government has vowed to make a legislative amendment that would again force Air Canada's various subsidiaries to follow federal requirements for bilingual services, placing the country's largest airline at a competitive disadvantage to its key rivals.

Yesterday's pledge to change the Air Canada Public Participation Act would mean that the airline's divisions, such as Jazz, technical services, cargo services and ground handling, would have to provide service in both official languages and allow employees to work in either English or French.

The airline and its subsidiaries were subject to the bilingual requirements before Air Canada emerged from bankruptcy protection in 2004, but only the core airline has been since that time.

"This is what a federalism of respect and openness is all about," Transport Minister Lawrence Cannon said in a statement.

Air Canada has been subject to Canada's official languages act since the legislation was enacted in 1969. A federal spokeswoman said the Montreal-based airline agreed to continue to abide by the language requirements when it was privatized in the late 1980s.

But WestJet Airlines Ltd. and Air Canada's other rivals need to be guided only by market forces in the provision of language services, giving them a distinct cost advantage.

Karl Moore, a management professor at McGill University in Montreal, said it's "a bit silly" that Air Canada is playing by different rules than its competitors.

Air Canada spokesman Peter Fitzpatrick said the company is concerned by the rule differences, but added that the airline believes customers are entitled to be served in their preferred language.

Two years ago, however, an Air Canada executive told a parliamentary committee that it's spending tens of millions of dollars to comply with federal bilingual rules that don't apply to its competitors.

Duncan Dee, senior vice-president of corporate affairs at ACE Aviation Holdings Inc., Air Canada's parent, told MPs on the official languages committee that the rules unfairly add costs for such things as administration, staff language courses and translation services.

MPs on the committee, however, showed little sympathy. Yesterday's proposed changes followed a recommendation by that same committee.

In addition to the language requirements, federal law also ensures that the former Crown corporation's head office remains in Montreal and that Air Canada, alone, produces operations manuals for mechanics in both languages, among other requirements.

WestJet, however, argues that federal rules don't always go against Air Canada. The larger airline has an exemption to use fewer flight attendants on some flights that means a cost savings.

© The Globe and Mail

I hate how they're having the expiration for inactive accounts, though I guess they do that with other airlines. Right?

Air Canada's first 767 with the new economy class seats!

http://www.airliners.net/open.file?id=1127049&size=L&width=1024&height=695&sok=%20BEQRE%20OL%20cubgb_vq%20QRFP&photo_nr=2

Great Work AC!

TORONTO

WestJet flies to record quarterly profit

MONTREAL, Oct 26 (Reuters) - WestJet Airlines Ltd. said on Thursday that its third-quarter profit was its best for any quarter, propelled by higher passenger traffic and revenues and better cost controls.

Canada's second-largest carrier said it earned C$52.8 million ($46.7 million) or 41 Canadian cents a share in the quarter, a 74.5 percent increase from a profit of C$30.3 million or 23 Canadian cents a share in the year earlier period.

That handily beat the average profit estimate of 30 Canadian cents a share of analysts polled by Reuters Estimates.

Revenues rose 24 percent to C$503 million from C$406 million, and the no-frills airline said key performance measures improved over those for the 2005 quarter.

Load factor, the proportion of paid seats on the airline's jets, rose to 80.5 percent from 78.6 percent. Yield, measured as revenue for each revenue passenger mile flown, rose to 18.9 Canadian cents from 18.3 Canadian cents.

WestJet has been expanding its fleet of 62 jets and network in the face of stiff competition with Air Canada, the country's No. 1 airline and a unit of ACE Aviation Holdings Inc. . It said third-quarter results were also helped by better costs controls, even though jet fuel prices rose 9.3 percent from the 2005 quarter.

($1=$1.13 Canadian)

WestJet agrees on terms for five new planes in 2009

http://www.globalphotos.org/calgary/20061008/IMG_0895.jpg

CALGARY, Alberta, Oct 30 (Reuters) - WestJet Airlines Ltd. said on Monday it has agreed to lease terms on the delivery of five new Boeing Co. 737 aircraft with Singapore Aircraft Leasing Enterprise, part of a plan to expand its fleet 30 percent by the end of 2009.

Calgary-based WestJet, Canada's No. 2 airline, said the deal lets it acquire four 136-passenger 737-700 aircraft and one 166-passenger 737-800. The planes are to be delivered during 2009.

The company, which competes with larger rival Air Canada for domestic travelers, said its deal with the leasing firm also gives it the option to acquire three more 700-series and one 800 series in 2009. The 700-series aircraft can be switched to 800-series planes if the carrier wishes.

Terms for the agreement were not released.

WestJet, which last week reported a record quarterly profit of C$52.8 million ($48 million), plans to have a fleet of 81 aircraft by the end of 2009, all 737s, up from a current total of 62.

Singapore Airlines Ltd. and WestLB AG [WDLG.UL] are the largest partners in Singapore Aircraft Leasing, according to its Web site, with each holding a 35.5 percent share.

Air Canada pilots, Jazz attendants win pay raises

CALGARY, Alberta, Nov 1 (Reuters) - Arbitrators have awarded pay raises to Air Canada pilots and Air Canada Jazz flight attendants, the airlines said on Wednesday.

Air Canada, whose parent is ACE Aviation Holdings Inc. , said that 3,100 pilots represented by the Air Canada Pilots Association will be awarded a 2 percent wage increase backdated to July, with another 1.75 percent next July and 1.75 percent in July 2008.

The award did not provide for any pension adjustments.

Air Canada said arbitration awards have now been received for all major labor groups except the Canadian Union of Public Employees. Negotiations with CUPE, which represents the airline's approximately 6,000 flight attendants, have now moved to arbitration.

Separately, Air Canada Jazz, a regional airline controlled by Jazz Air Income Fund and Air Canada, said an arbitrator awarded raises to 740 flight attendants and made them eligible for profit sharing.

Jazz said attendants represented by the Teamsters Canada union will be awarded a 1 percent wage increase this year, backdated to June 1, with 1.75 percent next June and 1.75 percent on June 1, 2008.

The arbitrator also granted the employees full participation in the company's profit-sharing plan.

The pay increases match those given last July to employees represented by the Canadian Auto Workers union.

The airline said the company is still in talks with 54 dispatchers represented by the Canadian Air Line Dispatchers Association.

Onex seen bidding for ACE Aviation maintenance unit

TORONTO, Nov 25 (Reuters) - Canadian leveraged buyout company Onex Corp is set to bid for the maintenance unit of ACE Aviation Holdings Inc. and take the unit private, the Globe and Mail newspaper said on Saturday.

The Globe, citing investment bankers and sources close to ACE's Air Canada airline unit, said Onex was likely to be a player in the auction. It said ACE had scrapped the idea of an IPO for the unit because revenues of the maintenance operations are too variable.

It said analysts expected the sale to fetch as much as C$900 million ($790 million).

Onex, in a tie-in with private equity partners in Australia and the United States, has also been tipped as a possible bidder for Australian airline Qantas Airways .

The Globe said Onex would face competition for the ACE maintenance operations, including from Deutsche Lufthansa , which already has a larger maintenance unit than that of Air Canada.

"The ACE unit ... fits with Onex's history of buying businesses that rely on one major customer and then expanding the customer base to soak up excess capacity and increase profit," the Globe said. It said Onex had declined to comment.

($1 = $1.13 Canadian)

WestJet launches prepaid flight passes
Calgary Herald
24 November 2006
Calgary Herald

WestJet Airlines is rolling out prepaid flight passes for travel between Toronto, Montreal and Ottawa in a bid to attract business passengers who frequently fly Canada's most populous corridor.

The passes, valid for travel until May 31, cost $1,700 for 10 one-way tickets between the three cities, offering a more convenient and flexible way to fly the so-called "Eastern Triangle," said WestJet president Sean Durfy.

"This really is to get people to try our product, to get on our planes now that we have good frequency in the marketplace. Economically it's a good deal and it competes directly with Air Canada's product."

Calgary-based WestJet is mimicking a strategy popularized by rival Air Canada, which became the first North American airline to employ the concept broadly across many of its routes.

Air Canada's Rapidair pass for travel between Toronto, Montreal and Ottawa costs $2,290 for a book of 10 tickets and is valid for a year from the time of purchase.

Air Canada has also launched a general North American pass, a Western Canada pass and an "oil express" booklet of tickets aimed squarely at Newfoundlanders working in Alberta's oilpatch.

"Our competition has learned what Air Canada's customers have known for quite some time now, and that is Air Canada's passes work superbly for travellers," said spokeswoman Angela Mah..

"We currently have 13 different types of passes in the marketplace and they are all designed to meet the needs of individual travellers, as well as up to 300 travellers from the same company."

If prepaid fares prove a successful strategy for WestJet in Eastern Canada, there is speculation the carrier will follow in Air Canada's footsteps with passes aimed at non-business flyers, many of whom are opting to spend their holidays on multiple, shorter trips.

But Durfy said WestJet has no immediate intent to launch passes across its network, noting that without proper planning they lose their economic benefit. "We have them in areas where we are looking to invest in those routes."

Durfy also confirmed Thursday that Brenda Trockstad, a veteran employee responsible for the airline's newly launched vacations division, is leaving the airline. Investors should not read anything unusual into her pending departure, he said.

"We are a big organization and with any organization there is always change."

Transport minister's plan for airline pacts with other countries will boost competition, help lower prices, analysts suggest

Nov. 28, 2006. 01:00 AM
RICK WESTHEAD
BUSINESS REPORTER


Transport Canada says it plans to further liberalize Canada's air policy by pursuing more open-skies agreements, a move industry analysts say may lead to lower trans-border fares on routes to countries like France, Singapore and Jordan.

In a bid to complement Canada's two open-skies pacts with the United States and Britain, Transport Minister Lawrence Cannon announced yesterday the Conservative government wants to open talks with others toward reaching similar accords.

Signing such agreements would mean foreign airlines would no longer face limits on how often they fly to Canada, what kind of aircraft they use on cross-border routes, or how much they can charge passengers. Similarly, Canadian-based carriers like Air Canada and WestJet Airlines Ltd. would get comparable accommodations overseas.

Several analysts yesterday welcomed the move and said Canada has typically trailed its large-market rivals when it comes to its international air policy. The United States, for instance, has 77 open-skies agreements, while New Zealand has 10 and Singapore nine.

"This comes down to economics 101," said Karl Moore, a McGill University professor who follows the airline sector. "Theoretically, if you have open skies, you have more competition and prices will come down."

Robert Kokonis, a Toronto airline consultant, said there's strong evidence that more open-skies agreements would result in lower ticket prices because of added competition.

"Look at Northwest Airlines," Kokonis said. "Before the original 1984 open-skies agreement, (the U.S.-based carrier) had routes from Detroit to Toronto and Montreal. After, they all of a sudden were operating routes to places like Ottawa, Quebec, Regina and Vancouver."

Kokonis said a deal with Singapore would make good sense because it's a good hub for travellers looking to get to Southeast Asia. Similarly, Jordan might be a good hub for travellers to the Middle East.

To be sure, McGill's Moore said it would still be at least another 10 years before Canada considered granting foreign carriers so-called "cabotage" rights, which would allow non-Canadian airlines to operate domestic flights here.

American-based carriers might covet routes such as Toronto-Montreal or Calgary-Vancouver, he said.

Similarly, Air Canada and WestJet would likely be proponents of such a move because it would give them the ability to fly lucrative routes like Boston-New York or Washington-Chicago.

"The fact is that there are 10 times the number of lucrative routes in the U.S.," Moore said. "Air Canada and WestJet would be licking their chops at the idea (of gaining access to the domestic U.S. market.)"

Yesterday, Cannon said the government would pursue open agreements, "when it is in Canada's overall interest and we will pursue more liberalized agreements on a reciprocal basis where obstacles exist to a true open-skies agreement."

Cannon's plan, dubbed "Blue Sky," comes several years after a veteran industry official warned Canada's absence from talks between the U.S. and European Union to negotiate a watershed aviation agreement might spell disaster for Canadian carriers.

"The same liberalization that came in domestic markets when deregulation occurred is going to happen internationally in the next decade and (Canada) should be an integral part of these discussions," Don Carty, the onetime head of American Airlines, said in 2003. "Canada cannot be a follower in these efforts. The Canadian economy is incredibly tightly linked to the U.S."

Carty, who made his comments at an airline industry conference in Toronto and who's now a board member of Porter Airlines, noted that Canada's absence would be "an anvil on (Air Canada's) shoulders."

http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1164667810221&call_pageid=968350072197&col=969048863851

WestJet Posts Record Nov. Load Factor Of 73.4%
5 December 2006
Dow Jones

WestJet Airlines Ltd. (WJA.T) had a record November load factor of 73.4%, with substantial increase in capacity of 27% and a traffic increase of 29%.

This load factor exceeds the previous November high, of 71.9% recorded in 2005, by 1.5 points. Year-to-date load factor increased to 78.2% from 74.2%, an increase of 4.0 points.

The Calgary-based low-cost air carrier's available seat miles for November increased to 1.06 billion, up from 840.3 million in November 2005. Traffic was 780.4 million revenue passenger miles in the latest month.

Air Canada load factor hits new monthly record
5 December 2006
The Globe and Mail

Air Canada's flights had a higher proportion of filled seats last month than in any previous November in history, the air carrier reported Tuesday.

The company said its load factor — a key airline industry measure that looks at passenger traffic as a percentage of total seat capacity — hit 77.2 per cent in the month, up 0.8 percentage point from the previous November best of 76.4 per cent, set last year. It achieved the gains even as seating capacity rose from a year earlier, as increased passenger traffic outpaced the rise in capacity.

“This is the third November in as many years that we have achieved a record load factor for the month, usually our slowest,” said Montie Brewer, president and chief executive of Air Canada, in a news release. “This second consecutive month of record load factors indicates that the issues impacting traffic in the third quarter are now behind us.”

Air Canada flew 2.995 billion revenue passenger miles (RPM) in November, up 4.1 per cent from a year earlier, according to the preliminary monthly traffic numbers released Tuesday. The carrier said its capacity was up 3 per cent to 3.879 billion available seat miles (ASM).

Traffic for the first 11 months of 2006 totalled 41.515 billion RPM, up 1.8 per cent from the same period in 2005. Capacity was up 0.7 per cent, to 51.130 billion ASM. Load factor rose to 81.2 per cent from 80.3 per cent.

Air Canada said that, including its Jazz affiliate, traffic was 3.301 billion RPM in November, up 5.6 per cent from a year earlier. Capacity was up 4.4 per cent, and load factor rose to 76.7 per cent from 75.8 per cent. For the year to date, traffic was up 4.6 per cent, capacity was up 3.8 per cent and load factor rose to 80.4 per cent from 79.8 per cent.

Domestic traffic on Air Canada's main airline rose 6.7 per cent in November while domestic capacity rose 3.5 per cent, resulting in a domestic load factor of 80 per cent, up from 77.6 per cent a year earlier. Including Jazz, domestic traffic was up 7.4 per cent while domestic capacity was up 4.4 per cent, lifting the load factor to 78.7 per cent from 76.5 per cent.

“In November, we reached another milestone when 58 per cent of our domestic bookings were made online, our lowest-cost distribution channel, marking a new all-time high in web-based transactions. This is by far the highest level of penetration achieved by any full service carrier in North America,” Mr. Brewer said.

“Looking forward, revenue and cost performance are on track, aided by strong future bookings and lower fuel prices,” he added.

Air Canada union says has not discussed job cuts
Fri Dec 8, 1:35 PM ET
Reuters`

The Canadian Auto Workers union's' airline division said on Friday that it had not discussed job cuts announced by Air Canada on Thursday.

Canadian media reported on Friday that Joshua Koshy, the airline's chief financial officer, said in an investors' conference call that Air Canada would cut jobs among check-in agents and back-office employees by using new reservations technology. He did not say how many people would be affected.

"We have not had any discussions with Air Canada regarding any additional job cuts to our members," Leslie Dias, president of CAW Local 2002 Airline Division, said in a statement.

Air Canada's stock was down 38 Canadian cents, or 2.2 percent, at C$17.17 by early afternoon the Toronto Stock Exchange.

Someone should edit the Wikipedia entry for Air Canada.. It says AC has ordered 2 A380's which is obviously false.

Air Canada suddenly Pearson fan: Airline expects big benefits from new Toronto terminal
14 December 2006
National Post

Air Canada is trumpeting the gleaming new terminal at Toronto's Pearson International Airport despite a history of criticizing the airport authority's $4.5-billion redevelopment project and the fact it will soon be forced pay even more to land its planes on Pearson's runways.

Montie Brewer, Air Canada's CEO, said in an interview yesterday the soon-to-be-completed Terminal 1, dubbed an unnecessary "Taj Mahal" by critics, will allow the country's largest airline to finally put all of its operations under roof at the airport, paving the way for seamless connections for passengers who want to use Toronto as a North American hub.

Air Canada, which once tried to stop Pearson's redevelopment plans with a lawsuit, will also benefit from a recent decision by Ottawa to allow international travellers bound for the United States to avoid clearing Canadian customs upon arriving at the airport, according to Mr. Brewer.

"This means Toronto, for the first time, will be as competitive a gateway to the U.S. marketplace from Asia and Europe as any airport in the U.S.," he said. "Right now, [U.S.] customers fly to Terminal 2, go through customs, re-claim their bag, re-check their bag, take a long walk and bus ride, go through security again and then proceed to their gate."

He added Air Canada will now start marketing its international flights to Europe and Asia more heavily in the United States.

But Air Canada, a division of ACE Aviation Holdings Inc., and its passengers will have to pay dearly for the added convenience. The Greater Toronto Airports Authority (GTAA) is set to once again raise landing fees at Pearson, solidifying the airport's status as the most expensive place in the world for airlines to land their jets.

Scott Armstrong, a spokesperson for the airport, said yesterday the GTAA's board of directors have approved a 1.45% increase to the airport's landing fees for 2007 -- money that will be used mainly to service the airport authority's ballooning debt. While that's less of a hike than in previous years, it nevertheless comes on the heels of a September decision to raise Pearson's departure tax from to $20 per passenger from $15 -- a decision that Air Canada called "completely unreasonable and is irrefutable proof that the government has to rein in airport authorities."

While Mr. Brewer yesterday acknowledged Air Canada has been a harsh critic of the GTAA's redevelopment plan, he nevertheless stressed that airline's issue is with the new building's extravagances, including a $10-million artwork budget -- not its functionality.

Sam Barone, the president of the Air Transport Association of Canada, said Air Canada's view on Pearson's high costs may be softening since it will be the main beneficiary of the new terminal and its ability to connect domestic, transborder and international traffic. Other air carriers, however, won't be as fortunate.

For its part, the GTAA has argued the airport it inherited from the federal government in the 1990s was falling apart and the improvements were necessary to make Toronto competitive with major U.S. airports. As well, the airport's operator says nearly a third of its landing fees go straight into federal coffers as part of Ottawa's airport rent scheme.

Jazz fund says fourth quarter profit rises 1.2 pct

CALGARY, Alberta, Feb 7 (Reuters) - Jazz Air Income Fund , which owns a stake in Canada's biggest regional airline operator, Air Canada Jazz, said on Wednesday fourth-quarter profit rose 1.2 percent.

The fund said net income rose to C$31.9 million ($27 million) and operating income climbed 3.4 percent to C$32.7 million. It did not provide per-unit figures or comparable data from the year-earlier quarter.

The trust, which distributes most of its free cash to unitholders, said distributable cash totaled C$27.2 million in the quarter.

Jazz owns a 20.3 percent stake in Air Canada Jazz, majority owned by ACE Aviation Holdings Inc. . The fund's net income for 2006 rose 19 percent to C$140 million from C$117.9 million in 2005, a gain the trust attributed to a larger fleet and cost controls.

Annual revenue rose 35 percent to C$1.38 billion. No quarterly revenue figure was provided.

Jazz Air flies to 56 Canadian and 29 U.S. destinations with a fleet of 135 aircraft, providing passengers for Air Canada's mainline routes.

Friday February 9, 8:38 PM
Air Canada posts narrower 4th qtr operating loss

TORONTO (Reuters) - Air Canada reported a narrower operating loss in the fourth quarter on Friday, as the country's biggest airline enjoyed stronger passenger revenues.

Air Canada, which was taken public by parent ACE Aviation Holdings Inc. in November, had an operating loss of C$5 million, compared with a loss of C$91 million a year earlier.

Passenger revenues gained 6 percent to C$2.1 billion, driven by a 5 percent growth in traffic on a capacity growth of 4 percent and a 1 percent yield improvement.

ACE Aviation Holdings Inc. , which holds about 75 percent of Air Canada, said it swung to an operating income of C$73 million in the fourth quarter. That compares with an operating loss of C$34 million in the same period a year earlier.

ACE sold a minority stake in Air Canada as part of a long-term plan to spin off all its operating entities, which also include the Aeroplan frequent flier program, Jazz Air regional carrier and ACTS aircraft maintenance unit.

($1=$1.18 Canadian)

WestJet profit rises on higher loads, lower costs

TORONTO, Feb 14 (Reuters) - WestJet Airlines Ltd. said on Wednesday its fourth-quarter profit rose sharply, as the discount carrier increased passengers loads, expanded its capacity and held a tight rein on expenses.

Canada's second-largest airline earned C$26.7 million $22.9 million), or 21 Canadian cents a share during the quarter, up from C$1 million, or 1 Canadian cent a share, a year-earlier.

Analysts had expected, on average, earnings of 15 Canadian cents a share according to Reuters Estimates.

Revenue rose 25.3 percent to C$459.6 million during the quarter from C$366.8 million.

"To say that I'm pleased -- very pleased -- by these results would be a serious understatement," Chief Executive Clive Beddoe told analysts in a conference call.

The company said load factor for the quarter was 75.5 per cent, compared with 74.7 per cent in 2005. Load factor, or a measure of how full an airline's planes are when they fly, is a key profitability measure for carriers.

"We generated what is currently the top operating margin reported in the North American airline industry, with an 11.2 percent margin," WestJet President Sean Durfy told analysts.

Calgary-based WestJet said that it will continue to modify its schedule to meet the seasonal habits of Canadian travelers , which includes catering to U.S. hotspot destinations such as West Palm Beach, Florida.

"Flying into the U.S. sun destinations at the right times during the year has become a key component to our deployment strategy," Durfy said.

The company's vacations business, launched in September, is also faring well, he added.

"In the fourth quarter, WestJet Vacations celebrated its first week of over C$1 million in gross sales and we're confident that this product will continue to generate significant revenues for WestJet."

While load factors strengthened, the airline also added capacity and controlled costs.

WestJet said its cost per available seat mile fell to 12.5 Canadian cents, compared to 13.3 Canadian cents in the fourth quarter of 2005.

As well, its "ancillary" revenue, which includes sales of headsets for back-of-the-seat TVs on its planes, pay-per-view movies and food sales, rose 67.6 percent to C$74.8 million in 2006.

WestJet shares were up 10 Canadian cents at C$15.70 on the Toronto Stock Exchange at midday.

($1=$1.17 Canadian)

Saturday February 17, 11:29 AM
Air Canada to end daily flights to India

MONTREAL (AFP) - Air Canada has announced plans to discontinue its daily flights to India starting in May, citing insufficient demand for the route.

Canada's leading carrier currently offers one daily flight from Toronto to New Delhi, with a stopover in Zurich, but it has been unable to break even on the route, particularly during the summer.

"Our financial goals were not met because of the seasonal nature of traffic to New Delhi, which did not enable us to maintain profitable occupancy levels throughout the entire year," Air Canada spokesman John Reber told AFP.

"We have tried several times over the past 20 years to make service between Canada and India work, ... but unfortunately we haven't found the right formula yet," he said.

Beginning in May, Air Canada will offer flights to India via a "code-sharing" arrangement with its Star Alliance partners.

An estimated 700,000 people of Indian origin live in Canada, according to the 2001 census.

Air Canada ripped for cutting India trips
Feb 16, 2007 04:30 AM
Prithi Yelaja
Toronto Star Staff Reporter

Air Canada is ending all flights to India so it can boost its service to China, a move called shocking and short-sighted by Indo-Canadian business leaders in Toronto.

With Canadian politicians hyping the need to boost trade and other ties with India – whose red-hot economy is growing at a rate second only to that of China – Air Canada's decision to suspend service to that country is baffling, said Kam Rathee, president of the Canada-India Business Council.

He sent a letter of protest to Air Canada president Montie Brewer urging him to reconsider.

"It's a lousy decision. It hurts in our efforts to promote Canada and Canadian companies in India. It's a huge setback to the Canada-India business momentum, because Air Canada was a very visible symbol of co-operation and business between the two countries. Now it's snapped without notice.".

"India might think we're talking out of both sides of our mouth, which is disheartening. On the one hand, we talk about trade promotion and yet at the same time, our national airline does this. Actions speak louder than words," added Rathee, who has not received a response from Brewer.

Air Canada will discontinue daily service to New Delhi as of May 1, spokesperson Peter Fitzpatrick confirmed.

"The route didn't meet our financial performance objectives. ... Because of the seasonal nature of the Delhi traffic it was difficult to fill the flights on a year-round basis," he said. Demand was high in winter but fell significantly in summer.

Air Canada has redeployed the 767 aircraft servicing India to China, "which is a very lucrative market for us," Fitzpatrick said. "There's a lot of demand there. There's a lot of business that gets conducted with China."

Air Canada will offer five daily non-stops from Toronto to Shanghai and Beijing, up from the current three, starting this summer.

Atul Ahuja, spokesperson for the Indo-Canada Chamber of Commerce, noted that Canada will now be the only G8 nation that does not have a national airline servicing India. Yet provincial governments are actively courting Indian trade and federal trade minister David Emerson is planning a visit next month.

Ahuja and Rathee, along with 150 other Ontario business and academic leaders, were part of Premier Dalton McGuinty's recent trade mission to India and Pakistan.

Air Canada will still service India through its Star Alliance partners, Lufthansa and Swiss, but passengers will need to switch planes in Zurich or Frankfurt before flying on to New Delhi or Mumbai. Other carriers such as Air France, British Airways and Air India also offer alternatives, though none are non-stop.

Meanwhile, privately owned Indian airlines such as Air Sahara and Jet Airways may offer India-Canada flights within two years, Rathee said.

[size=4][b]Air Canada will offer five daily non-stops from Toronto to Shanghai and Beijing, up from the current three, starting this summer.

Umm... actually, that should be 5 daily non-stops from Canada -- not Toronto... 3 flights daily from Vancouver and 2 from Toronto.

Air Canada ripped for cutting India trips
Feb 16, 2007 04:30 AM
Prithi Yelaja
Toronto Star Staff Reporter

Air Canada is ending all flights to India so it can boost its service to China, a move called shocking and short-sighted by Indo-Canadian business leaders in Toronto.

With Canadian politicians hyping the need to boost trade and other ties with India – whose red-hot economy is growing at a rate second only to that of China – Air Canada's decision to suspend service to that country is baffling, said Kam Rathee, president of the Canada-India Business Council.

He sent a letter of protest to Air Canada president Montie Brewer urging him to reconsider.

"It's a lousy decision. It hurts in our efforts to promote Canada and Canadian companies in India. It's a huge setback to the Canada-India business momentum, because Air Canada was a very visible symbol of co-operation and business between the two countries. Now it's snapped without notice.".

"India might think we're talking out of both sides of our mouth, which is disheartening. On the one hand, we talk about trade promotion and yet at the same time, our national airline does this. Actions speak louder than words," added Rathee, who has not received a response from Brewer.

Air Canada will discontinue daily service to New Delhi as of May 1, spokesperson Peter Fitzpatrick confirmed.

"The route didn't meet our financial performance objectives. ... Because of the seasonal nature of the Delhi traffic it was difficult to fill the flights on a year-round basis," he said. Demand was high in winter but fell significantly in summer.

Air Canada has redeployed the 767 aircraft servicing India to China, "which is a very lucrative market for us," Fitzpatrick said. "There's a lot of demand there. There's a lot of business that gets conducted with China."

Air Canada will offer five daily non-stops from Toronto to Shanghai and Beijing, up from the current three, starting this summer.

Atul Ahuja, spokesperson for the Indo-Canada Chamber of Commerce, noted that Canada will now be the only G8 nation that does not have a national airline servicing India. Yet provincial governments are actively courting Indian trade and federal trade minister David Emerson is planning a visit next month.

Ahuja and Rathee, along with 150 other Ontario business and academic leaders, were part of Premier Dalton McGuinty's recent trade mission to India and Pakistan.

Air Canada will still service India through its Star Alliance partners, Lufthansa and Swiss, but passengers will need to switch planes in Zurich or Frankfurt before flying on to New Delhi or Mumbai. Other carriers such as Air France, British Airways and Air India also offer alternatives, though none are non-stop.

Meanwhile, privately owned Indian airlines such as Air Sahara and Jet Airways may offer India-Canada flights within two years, Rathee said.
I think this may be one of the worst decisions Air Canada has ever made. I don't know if anyone else caught the radio interview with Air Canada spokesperson Peter Fitzpatrick, but, like most spokespeople, not a single question was properly answered. If anyone out there has a seemingly legitimate reason as to why this flight is being cancelled, I would love to hear it. My theory, and it's only a theory, is that Air Canada has such a lack of decent aircraft that they don't know how to properly manage them and use them to their maximum efficiency. It makes no sense to me that, in the past year, Air India can double its flight to Canada, Jet Airways is expanding service by adding two Delhi flights to Toronto, that Air Canada would feel the need to pull out.

Oh and by the way, Air Canada just sponsored a trade mission to India not more than 3 weeks ago.

Me thinks Air Canada is not speaking the whole truth...

its most likely a lack of aircraft, or possibly AC's cost structure is such that it cant compete against companies like Jet or airindia because of lower labour/capital costs.

its most likely a lack of aircraft, or possibly AC's cost structure is such that it cant compete against companies like Jet or airindia because of lower labour/capital costs.
It's gotta be that because I've been on that AC flight 9 times and I've never seen an empty seat. In fact I was rerouted through Frankfurt once because the flight was oversold.

WestJet to boost fleet to 85 planes by end-2009

OTTAWA, Feb 28 (Reuters) - Discount carrier WestJet Airlines Ltd. said on Wednesday it will increase the size of its fleet to 85 aircraft by the end of 2009, from a current fleet of 64.

The company also said it had finalized a term sheet with Singapore Aircraft Leasing Enterprise for two Boeing Next-Generation 737 aircraft to be delivered in 2009.

Canada's second-biggest airline said it has six aircraft scheduled for delivery during 2007, six in 2008, and nine in 2009.

More detailed release :

WestJet's Fleet Expanding to 85 Aircraft in 2009
FEB 28, 2007 - 08:30 ET

CALGARY, ALBERTA--(CCNMatthews - Feb. 28, 2007) - WestJet (TSX:WJA) today announced that it has finalized a term sheet with Singapore Aircraft Leasing Enterprise (SALE) for two Boeing Next-Generation 737 aircraft to be delivered in 2009. Details of the agreement include one 700-series and one 800-series aircraft scheduled for delivery in November and December 2009.

"As WestJet builds on its partnership with SALE we are thrilled to add two more leased aircraft to our 2009 growth plans," said Sean Durfy, President WestJet. "As demonstrated by our 2006 financial results, our ability to continuously increase capacity, maintain favourable load factors and produce profitable results gives us confidence in our continued momentum as we grow our fleet to 85 aircraft in 2009."

WestJet currently has a registered fleet of 64 aircraft, with six additional aircraft committed for delivery in the remainder of 2007, six scheduled for delivery in 2008 and nine committed for delivery in 2009. By the end of 2009, WestJet will have a registered fleet of 85 aircraft.

WestJet is Canada's leading low-fare airline offering scheduled service throughout its 35-city North American and Caribbean network. Named Canada's most admired corporate culture in 2006, WestJet pioneered low-cost high-value flying in Canada. With increased legroom and leather seats on its modern fleet of Boeing Next-Generation 737 aircraft, and live seatback television provided by Bell ExpressVu on the majority of its fleet, WestJet strives to be the number one choice for travellers.

Air Canada to fly new Boeing 777 aircraft on key Europe, Asia and South Pacific routes; introduces only non-stop service between Canada and Australia

MONTREAL, March 1 /CNW Telbec/ - Air Canada today announced that it will
operate its first new Boeing 777 aircraft on key routes serving Europe, Asia
and the South Pacific. As the airline begins introduction in April 2007 of the
first of eight new 777 aircraft to be delivered in 2007, Air Canada customers
will experience the world's most advanced widebody aircraft on select Air
Canada services: Toronto-London Heathrow (beginning in April),
Toronto-Frankfurt and Toronto-Tokyo (beginning in June), Vancouver-Tokyo
(beginning in July) and Toronto-Hong Kong (beginning in August).
In addition, effective December 14, 2007, Air Canada will introduce daily
non-stop service between Vancouver and Sydney, Australia using its new 777
aircraft. Air Canada thus becomes the only airline offering non-stop service
between Canada and Australia.
"The introduction of 777 service featuring Air Canada's new in-flight
product on these key European, Asian and South Pacific routes places Air
Canada on the forefront of North American carriers offering the highest
quality of long haul service and amenities," said Sean Menke, Executive Vice
President and Chief Commercial Officer. "With the arrival of the 777, we are
thrilled to introduce the only daily, non-stop service between Canada and
Australia, our seventh non-stop destination in the Asia-Pacific region.
"We are equally proud to be the only North American carrier to offer
customers the comfort and privacy of first class lie-flat beds, at a business
class price. The deployment of these highly fuel efficient and
customer-friendly 777 aircraft on select Air Canada services to London,
Frankfurt, Tokyo, Hong Kong and Sydney raises the bar in comfort and
convenience in air travel while leveraging Air Canada's extensive
international and North America route networks via our Toronto and Vancouver
hubs."
Air Canada has timed its new Vancouver-Sydney non-stop service to offer
customers a vast array of time saving connections to and from points
throughout North America and Australia. The carrier's new non-stop routing,
with an elapsed time of approximately 15 hours southbound and 14 hours
northbound, shaves more than three hours off the current one-stop routing via
Honolulu. Air Canada flight AC033 will depart Vancouver at 23:45, arriving in
Sydney 09:50 two days later due to time zone differences. Effective December
16, 2007, AC034 will depart Sydney 11:35, arriving in Vancouver the same day
at 06:40. Air Canada's Star Alliance partner, Air New Zealand, will codeshare
on this service.
With the introduction of non-stop service to Sydney, the carrier has
suspended near-term plans to operate flights to Australia via Los Angeles in
view of the lack of necessary authorizations at this time to operate the
route.
Air Canada's 777-300ER aircraft are configured to provide a choice of
42 Executive First Suites and 307 seats in Economy Class and the new 777-200LR
that will be operated on the Sydney route from February 1, 2008 will be
configured with 42 Executive First Suites and 228 seats in Economy Class.
Customers will enjoy industry-leading in-flight amenities on all 18 of the new
777 aircraft that Air Canada has on order, creating a consistent fleet-wide
in-flight product, in conjunction with the carrier's major refurbishment
program of its existing fleet now underway. In addition, Air Canada has
14 Boeing 787 aircraft on order that will begin delivery in 2010.
Air Canada's new in-flight product features lie-flat beds in its
international Executive First cabin, the only North American airline to offer
the comfort and privacy of lie-flat beds in business class. All customers will
enjoy digital quality personal seatback entertainment systems with 80 hours of
video and 50 hours of audio on demand, as well as standard 110 volt electrical
outlets at arms reach.

Montreal-based Air Canada provides scheduled and charter air
transportation for passengers and cargo to more than 150 destinations on five
continents. Canada's flag carrier is the 14th largest commercial airline in
the world and serves 30 million customers annually with a fleet consisting of
335 aircraft. Air Canada is a founding member of Star Alliance, providing the
world's most comprehensive air transportation network.

http://www.newswire.ca/en/releases/archive/March2007/01/c5821.html

if HongKong is getting the 777s, then where are the A340-500s going?

^^Probably to some other Asian routes - or possibly a restart of the Delhi route direct.

if HongKong is getting the 777s, then where are the A340-500s going?

I believe AC is getting rid of the A345 entirely. India has been wiped off the network. Management decided to use long-haul aircraft to expand to China instead.

if anyones interested, their an interesting editorial in last months Canadian Business on why AC canceled the New Delhi route. It seems that AC was losing a lot of money on that route and couldnt compete with Air India's cost structure.

I believe AC is getting rid of the A345 entirely. India has been wiped off the network. Management decided to use long-haul aircraft to expand to China instead.

the 345 are very new aircrafts. Do we know if AC got them on lease?

Up in till 2006 Air Canada operated daily from Glasgow to Toronto with a Boeing 767 but with increased competition on the route they pulled it.

Recently there has been rumours going around that Air Canada are set to return to the Glasgow-Toronto route but with an Airbus A319. Has anyone herd anything more on this?

Does anyone know if AC will fly to Melbourne?

^^Very slim chance, the Toronto/LAX/Sydney route was denied or something, so I guess nothing from the TO side. And I'm pretty sure YVR would never be able to handle that route.

Air Canada plane does U-turn to Tokyo on false 'door open' alert

TOKYO, March 13, 2007 (AFP) - An Air Canada plane carrying 253 people did an emergency U-turn shortly after taking off from Tokyo's Narita airport Wednesday on a false alert that one of its doors opened in flight, an airport spokesman said.

The Airbus A340 took off from at 5:18 pm (0818 GMT) on a flight to Toronto but headed back "when it was indicated that a right front door was open," the spokesman said.

The jet touched down at the airport at 6:06 pm and departed again two hours later after safety checks, he said. "It was confirmed the door had remained shut."

All the 238 passengers and 15 crew members were safe.

Wal-Mart to fly WestJet
March 21, 2007
Canadian Press

CALGARY – Canada's main no-frills airline has struck a deal to fly around executives from Wal-Mart Stores Inc., the world's largest discount department store and food retailer.

WestJet Airlines (TSX: WJA) announced a "preferred airline" link with Wal-Mart (NYSE: WMT) on Wednesday in a move the discount air carrier hopes will generate new revenues from expanded transportation and group services to the giant retailers' business travellers.

The Calgary airline said it hopes to use the new business with Wal-Mart to attract even more contracts with a broad range of corporate business travellers – anywhere from local to international organizations who want discount flights.

"As we continue to expand our service reach, we become an attractive option for many national and multinational corporations," said Duncan Bureau, WestJet's sales vice-president. "Wal-Mart is one of the most highly regarded organizations of our time."

Duane Futch, director of global travel services for Wal-Mart, said WestJet's discount business model "makes them a valuable business partner and logical choice for our company."

WestJet operates flights to 35 cities in North American and the Caribbean.

Wal-Mart is the world's biggest retailer with operations around the globe and more than 1.4 million employees.

In Canada, Wal-Mart operates more than 280 discount retail outlets, superstores and other branded department stores and has a workforce of more than 70,000 people.

In Wednesday trading on the Toronto Stock Exchange, WestJet shares rose seven cents to $15.20.

wow all i see is good news for westjet, perhaps canada's southwest airlines? :;) well i enjoyed your news hkskyline, great job with the details :)

I hope that they change their livery very soon. It's, like, they're proud to be cheap. :ohno:

WestJet adds flights following rival's withdrawal

CALGARY, Alberta, April 12 (Reuters) - WestJet Airlines Ltd. said on Thursday it would boost service from Vancouver, British Columbia, after a rival carrier ended scheduled service from the city.

WestJet, Canada's No. 2 airline, will add new nonstop flights to Toronto next month in a move it said was a response to Harmony Airways' decision last month to walk away from its scheduled routes because of rising costs and cutthroat competition.

WestJet said it will also add winter flights to Hawaii, Las Vegas and Palm Springs, California, in November.

"We recognize travelers' flight choices and flexibility were compromised after Harmony Airways announced ceasing their operations and flights to these locations," Bob Cummings, executive vice-president of WestJet, said in a release.

Harmony ended its Vancouver-to-Toronto service on March 30 and all other scheduled service on April 9.

Air Canada reports record March traffic
Mainline passenger load factor of 83.8% - highest ever for March

MONTREAL, April 4 /CNW Telbec/ - Air Canada reported a record load factor
of 83.8 per cent in March 2007, the highest ever for the month.

The mainline carrier flew 5.0 per cent more revenue passenger miles
(RPMs) in March 2007 than in March 2006, according to preliminary traffic
figures. Capacity increased by 2.0 per cent, resulting in a load factor of
83.8 per cent, compared to 81.4 per cent in March 2006; an increase of
2.4 percentage points.

Jazz, from which Air Canada purchases regional capacity, flew 16.8 per
cent more RPMs in March 2007 than in March 2006, according to preliminary
traffic figures. Capacity increased by 12.0 per cent, resulting in a load
factor of 76.0 per cent, compared to 72.9 per cent in March 2006; an increase
of 3.1 percentage points.

Year over year, system traffic on a consolidated basis for Air Canada and
Jazz, rose 5.9 per cent on a capacity increase of 2.9 per cent, resulting in a
load factor of 83.1 per cent; an increase of 2.4 percentage points.

"Air Canada achieved a record load factor of 83.8 per cent in March as we
continued to grow our customer base and the market for our products and
services remained very strong. Clearly, customers are expressing a growing
preference for Air Canada when they travel," said Montie Brewer, President and
Chief Executive of Air Canada. "In March, we took delivery of the first of
eight ultra-modern Boeing 777 aircraft that will be introduced to the fleet
this year, giving people more reason than ever to fly Air Canada. In addition
to our simplified fares, new seatback video systems and Executive First lie
flat seats, a key part of the experience remains the service our employees
provide and their hard work is winning the loyalty of travellers."

This discussion contains certain forward-looking statements, which
involve a number of risks and uncertainties. As a result of many factors
including acts or potential acts of terrorism, international conflicts,
government regulations and government mandated restrictions on operations and
pricing, fuel prices, industry restructuring, labour negotiations, the
economic environment in general including foreign exchange and interest rates,
the airline competitive and pricing environment, industry capacity decisions
and new entrants as well as external events, actual results could differ from
expected results and the differences could be material.

http://micro.newswire.ca/release.cgi?rkey=1504042370&view=13213-0&Start=0

WestJet Announces Its Highest March Load Factor in History
Press Release
APR 4, 2007 - 08:30 ET

Load factor of 85.2 per cent marks the airline's best March, capping a record first quarter

CALGARY, ALBERTA--(CCNMatthews - April 4, 2007) - WestJet (TSX:WJA) today announced a March load factor of 85.2 per cent - a record high for the month. Results for March include an 18 per cent increase in available seat miles over March last year, demonstrating the airline's continued ability to add capacity and stimulate demand. WestJet's year-to-date load factor of 81.1 per cent marks a record first quarter, a significant achievement in a quarter where capacity increased 19% per cent.

Sean Durfy, WestJet President commented, "These results clearly establish WestJet as a national airline of choice. The past three months of record load factor indicate guests are choosing WestJet and that we are well positioned to successfully continue adding aircraft to our fleet. We have an additional five deliveries for new 737s confirmed before year-end, bringing our 2007 total to seven new aircraft.

"Our record first quarter traffic results show that our unique guest experience delivered by our WestJetters is meaningful for our guests. I would like to thank our people for their efforts throughout the first quarter."

March 2007 Traffic Results---------------------------------------------------------------------------- Per cent March 2007 March 2006 change----------------------------------------------------------------------------Load Factor 85.2% 81.9% 3.3 pts.----------------------------------------------------------------------------Available Seat Miles (ASM) 1,195.6 million 1,014.6 million 18%----------------------------------------------------------------------------Revenue Passenger Miles (RPM) 1,018.4 million 831.3 million 23%----------------------------------------------------------------------------
---------------------------------------------------------------------------- Per cent Q1 2007 Q1 2006 change----------------------------------------------------------------------------Load Factor 81.1% 79.4% 1.7 pts.----------------------------------------------------------------------------Available Seat Miles (ASM) 3,449.0 million 2,897.1 million 19%----------------------------------------------------------------------------Revenue Passenger Miles (RPM) 2,797.2 million 2,300.4 million 22%----------------------------------------------------------------------------

"Similar to January and February, we are pleased with RASM (revenue per available seat mile) for March, as this key measure continues to track to expectations," said Sean Durfy. "Our growth, specifically in Eastern Canada, will continue as we begin service into Kitchener-Waterloo, Saint John and Deer Lake starting in May."

This discussion may contain forward-looking statements and are subject to, and may be affected by, numerous risks and uncertainties, some of which are beyond WestJet's control. WestJet's results may differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to these differences include, but are not limited to: changes in government policy, exchange rates, interest rates, disruption of supplies, volatility of fuel prices, terrorism, general economic conditions, the competitive environment and other factors described in WestJet's public reports and filings. Forward-looking statements are subject to change and WestJet does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise.