AIR Canada

Air Canada is Canada's largest domestic and international full-service airline and the largest provider of scheduled passenger services in the domestic market, the transborder market and each of the Canada-Europe, Canada-Pacific, Canada-Caribbean/Central America and Canada-South America markets. Passenger transportation is the principle business. Headquartered in Montreal, Air Canada is a wholly owned subsidiary of ACE Aviation Holdings Inc. (ACE).

Together, Air Canada and Jazz (Canada's largest regional carrier, another subsidiary unit of ACE; www.flyjazz.ca) operate an extensive domestic, transborder and international network. During 2005, Air Canada and Jazz operated, on average, approximately 1,200 scheduled flights each day and carried over 30 million passengers, with a combined fleet of 322 aircraft (of which 121 are Jazz). In 2005, Air Canada provided direct passenger air transportation to 159 destinations and, through commercial agreements with other unaffiliated regional airlines referred to as tier 111 carriers, to an additional 11 destinations, for a total of 170 direct destinations on five continents. Primary hubs are located in Toronto, Montreal, Vancouver and Calgary.

Air Canada also operates an extensive global network in conjunction with its international partners. Air Canada is a founding member of the Star Alliance (www.staralliance.com), the world's largest airline alliance group. The Star Alliance has grown, since its inception, to include 16 members and three regional members. Through its strategic and commercial arrangements with Star Alliance members and several other airlines, Air Canada offers service to over 795 destinations in 139 countries, with reciprocal participation in frequent flyer programs and use of airport lounges.

Air Canada's frequent flyer program, Aeroplan (www.aeroplan.com), a subsidiary of ACE, is Canada's most popular loyalty program. Over 5 million members earn miles toward reward travel to destinations served by Air Canada, Jazz and other regional and worldwide partner airlines.

Air Canada's predecessor, Trans Canada Air Lines (TCA) inaugurated its first flight on Sept. 1, 1937. The 50-minute flight aboard a Lockheed 10A carried two passengers and mail between Vancouver and Seattle. By 1964, TCA had grown to become Canada's national airline; it changed its name to Air Canada. The airline became fully privatized in 1989. In 2000, Air Canada acquired Canadian Airlines International. Today, Air Canada is the 14th largest commercial airline in the world.