Air Canada

**Air Canada** is the flag carrier and the largest airline of Canada by fleet size and passengers carried. The airline, founded in 1937, provides scheduled and charter air transport for passengers and cargo to 207 destinations worldwide. It is a founding member of the Star Alliance. Air Canada's corporate headquarters are in Montreal, Quebec, while its largest hub is at Toronto Pearson International Airport. The airline's regional service is Air Canada Express.

Canada's national airline originated from the Canadian federal government's 1936 creation of Trans-Canada Airlines (TCA), which began operating its first transcontinental flight routes in 1938. In 1965, TCA was renamed Air Canada following government approval. After the deregulation of the Canadian airline market in the 1980s, the airline was privatized in 1988. On 4 January 2000, Air Canada acquired its largest rival, Canadian Airlines. In 2003, the airline filed for bankruptcy protection and in the following year emerged and reorganized under the holding company ACE Aviation Holdings Inc. In 2017, Air Canada flew 48 million passengers, as the airline celebrated its 80th anniversary.

## History (as Trans-Canada Airlines)

Air Canada's predecessor, Trans-Canada Air Lines (TCA), was created by federal legislation as a subsidiary of Canadian National Railway(CNR) on 11 April 1937.The newly created Department of Transport under Minister C. D. Howe desired an airline under government control to link cities on the Atlantic coast to those on the Pacific coast. Using $5 million in Crown seed money, two Lockheed Model 10 Electras and one Boeing Stearman biplane were purchased from Canadian Airways and experienced airline executives from United Airlines and Delta Airlines were brought in.Passenger flights began on 1 September 1937, with an Electra carrying two passengers and mail from Vancouver to Seattle, a $14.20 round trip, and, on 1 July 1938, TCA hired its first flight attendants. Transcontinental routes from Montreal to Vancouver began on 1 April 1939, using 12 Lockheed Model 14 Super Electras and six Lockheed Model 18 Lodestars. By January 1940, the airline had grown to about 579 employees.originally headquartered in Winnipeg, which was also the site of the national maintenance base, the federal government moved TCA's headquarters to Montreal in 1949; the maintenance base later also moved east. With the development of the ReserVec in 1953, TCA became the first airline in the world to use a computer reservation system with remote terminals.

By 1964, TCA had grown to become Canada's national airline and, in 1964, Jean Chrétien submitted a private member's bill to change the name of the airline from Trans-Canada Airlines to *Air Canada*, which TCA had long used as its French-language name. This bill failed but it was later resubmitted and passed, with the name change taking effect on 1 January 1965.Elizabeth II, the reigning Queen of Canada, flew on the first aircraft to bear the name and livery of Air Canada when she departed for the United Kingdom at the end of her 1964 tour of Prince Edward Island, Quebec, and Ontario in 1964.

## Canadian Airlines merger

In January 2001, Air Canada acquired Canada's second largest air carrier, Canadian Airlines, merging the latter's operations, becoming the world's twelfth-largest airline in the first decade of the 21st century. As Air Canada gained access to its former rival's financial statements, officials learned that the carrier was in worse financial shape than was previously believed. An expedited merger strategy was pursued, but in summer 2000 integration efforts led to flight delays, luggage problems and other frustrations. However, service improved following Air Canada officials' pledge to do so by January 2001. The airline was confronted by the global aviation market downturn and increased competition, posting back-to-back losses in 2001 and 2002.

## Proposed Air Transat merger

On 16 May 2019, Air Canada announced it is in exclusive talks to buy Transat A.T., the parent company that owns Air Transat, for 520 million Canadian dollars. On 27 June 2019, Transat A.T. agreed to be purchased by Air Canada for CA$13 per share. The deal is still subject to shareholder and regulatory approval. On 11 August 2019, Air Canada raised the purchase price of Transat A.T. to CA$18 per share. The overall value of the deal was now 720 million dollars. On 23 August 2019, 95% of Transat A.T. shareholders approved the acquisition by Air Canada on that basis. The plan was "expected to face intense scrutiny from the Competition Bureau and other regulatory authorities, including in Europe", according to CBC News. The agreement was revised downwards in October 2020 to CA$5 per share, reflecting the challenges posed to the airline industry by the COVID-19 pandemic. On April 2 2021 the merger was dropped following a failure to secure European Commission approval.

## Fleet

As of September 2021 the Air Canada Fleet consists of: