Air Canada is Canada's largest airline and flag carrier, established in 1937 and headquartered in Montreal. It provides scheduled and charter air transport for passengers and cargo, serving 222 destinations worldwide. It operates major hubs in Montreal, Toronto, and Vancouver. Air Canada is also a founding member of the Star Alliance.
Air Canada's acquisition of the Airbus A350-1000 will enable new ultra-long-range routes previously unattainable by its Boeing 777-300ER fleet, signaling a significant shift in fleet strategy as 2025 approaches.
In 1936, the Canadian federal government created Trans-Canada Air Lines (TCA), which would later become Air Canada.
On April 11, 1937, Trans-Canada Air Lines (TCA), Air Canada's predecessor, was created by federal legislation as a subsidiary of Canadian National Railway (CNR).
In 1937, Air Canada was founded as the flag carrier and largest airline of Canada.
On July 1, 1938, TCA hired its first flight attendants.
In 1938, Trans-Canada Air Lines (TCA) began operating its first transcontinental flight routes.
On April 1, 1939, transcontinental routes from Montreal to Vancouver began, using 12 Lockheed Model 14 Super Electras and six Lockheed Model 18 Lodestars.
By January 1940, the airline had grown to about 579 employees.
In 1942, Canadian Pacific Airlines (CP Air) suggested a merger with TCA, but Prime Minister William Lyon Mackenzie King rejected the proposal.
In 1949, the federal government moved TCA's headquarters from Winnipeg to Montreal.
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.
In 1964, Jean Chrétien submitted a private member's bill to change the name of the airline from Trans-Canada Airlines to Air Canada.
In 2017, Air Canada's new retro livery incorporated design aspects from the logo used between 1964 and 1992.
On January 1, 1965, the name change from Trans-Canada Airlines to Air Canada took effect.
In 1965, Trans-Canada Air Lines (TCA) was officially renamed Air Canada following government approval.
In 1975, Air Canada was headquartered at 1 Place Ville-Marie in Montreal.
In 1976, with reorganization at CNR, Air Canada became an independent Crown corporation.
The Air Canada Act of 1978 ensured that the carrier would compete on a more equal footing with rival regional airlines and CP Air, and ended the government's direct regulatory control over Air Canada's routings, fares, and services.
By 1985, the Canadian government was indicating a willingness to privatize both Canadian National Railways and Air Canada.
On December 7, 1987, Air Canada became the first airline in the world with a fleet-wide non-smoking policy.
In the spring of 1987, Air Canada initiated a test program of no-smoking flights between Canada and New York City, which was then extended to other flights after a survey showed strong passenger support.
The deregulation of the Canadian airline market, under the new National Transportation Act, 1987, officially opened the airline market in Canada to equal competition.
In 1988, Air Canada was privatized, and 43% of shares were sold on the public market, with the initial public offering completed in October of that year.
In 1990, Air Canada moved its headquarters to the airport to cut costs.
Călin Rovinescu became the first Canadian President since Claude Taylor in 1992 on 1 April 2009.
In 1992, Air Canada sold the enRoute card business to Diners Club.
In 2017, Air Canada's new retro livery incorporated design aspects from the logo used between 1964 and 1992.
In 1995, taking advantage of a new US-Canada open skies agreement, Air Canada added 30 new trans-border routes.
On September 2, 1998, pilots for Air Canada launched the company's first pilots' strike, demanding higher wages.
At the end of 1999, the Canadian government relaxed some aviation regulations, aiming to consolidate the Canadian airline industry, leading to takeover bids for Canadian Airlines and Air Canada.
The second half of the 1990s saw the airline earn consistent profits, totaling $1 billion for the 1997 to 1999 period.
In January 2000, Air Canada acquired Canada's second-largest air carrier, Canadian Airlines International, merging the latter's operations and becoming the world's twelfth-largest airline.
On January 4, 2000, Air Canada took over its largest rival, Canadian Airlines.
Service improved following Air Canada officials' pledge to do so by January 2001, after integration efforts in summer 2000 led to flight delays and other issues.
In 2001, Air Canada consolidated its wholly owned regional carriers into Air Canada Regional Incorporated.
Air Canada posted back-to-back losses in 2001 and 2002 due to a global aviation market downturn and increased competition.
In 2002, Air Canada launched a discount airline named Zip to compete directly with WestJet on routes in Western Canada.
On April 1, 2003, Air Canada filed for protection under the Companies' Creditors Arrangement Act.
Călin Rovinescu was Air Canada's chief restructuring officer during its 2003 bankruptcy.
In 2003, Deutsche Bank unveiled an $850 million financing package for Air Canada, contingent on cost cuts.
In 2003, retired judge James Farley presided over Air Canada's bankruptcy.
Air Canada emerged from protection under the Companies' Creditors Arrangement Act on September 30, 2004, 18 months after filing.
In October 2004, Canadian singer Celine Dion became the face of Air Canada to relaunch the airline and draw in a more international market. She also recorded her single, "You and I".
Between 2004 and 2017, Air Canada uniforms used a midnight blue colour. The uniforms were designed by Canadian fashion designer Debbie Shuchat.
In 2004, Zip, the discount airline launched by Air Canada in 2002, was disbanded.
In 2004, the Air Canada Tango service, which had been launched in 2001, was dissolved.
Aeroplan, Air Canada's loyalty marketing program, was spun off from Air Canada in 2005.
Started in July 2006, Project XM: Extreme Makeover, was a $300 million aircraft interior replacement project to install new cabins on all aircraft.
In 2007, Air Canada's pension shortfall grew to $1.2 billion, contributing to a $2.85 billion shortfall by 2010.
Montie Brewer resigned on 30 March 2009.
In July 2009, Air Canada received CA$1 billion in financial aid from a consortium, including the Canadian government, ACE, and Aeroplan. Only CA$600 million was actually loaned to Air Canada.
By the first quarter of 2009, the airline cut its capacity by 7 percent due to high fuel prices and the Great Recession.
In 2009, Air Canada requested a moratorium on its pension payments after suffering a Q1 loss of $400 million, while being obligated to pay $650 million into the pension fund. Judge James Farley was appointed to mediate the pension issues.
In 2010, Air Canada reported a $2.85 billion pension shortfall as a "liquidity risk" in its first-quarter report, requiring new financing and pension relief to conserve cash.
On 20 September 2012, Air Canada introduced "Air Canada Altitude," a new frequent flyer status program to complement Aeroplan.
In November 2012, ACE sold its remaining 31 million Air Canada shares to Cormark Securities Inc.
Launched in December 2012, Air Canada Rouge is a subsidiary of Air Canada serving predominantly leisure destinations.
Air Canada, previously loss-making for several years, became profitable again starting in 2012.
In December 2013, Air Canada ordered 61 Boeing 737 MAX aircraft to replace its Airbus A320 fleet.
In 2013, Trans-Canada Capital began a partnership with Pretium Partners, investing in their single-family rental real estate strategy.
In February 2014, Air Canada decided to leave the sports charter business.
On 17 March 2015, Air Canada announced an agreement with several NHL teams to provide charter services under the Air Canada Jetz brand for six years starting from the 2015–2016 NHL season.
Since 29 July 2016, Air Canada's variable voting shares have been traded on OTCQX International Premier in the US under the single ticker symbol "ACDVF".
On 17 March 2015, Air Canada announced an agreement with several NHL teams to provide charter services under the Air Canada Jetz brand for six years starting from the 2015–2016 NHL season.
On 9 February 2017, Air Canada launched a new retro red and black aircraft livery to coincide with its 80th anniversary and Canada's 150th anniversary of Confederation, incorporating design aspects from the logo used between 1964 and 1992.
On 9 February 2017, Air Canada unveiled a new uniform scheme, designed by Christopher Bates, coinciding with Canada's 150th and Air Canada's 80th anniversaries.
In May 2017, Air Canada announced its intention to launch a new loyalty program in 2020, replacing Aeroplan and Altitude.
On 2 November 2017, Air Canada received its first MAX 8 variant from its order of Boeing 737 MAX aircraft.
Between 2004 and 2017, Air Canada uniforms used a midnight blue colour. In 2017, Celine Dion helped the newly solvent airline debut its new image.
In April 2018, Air Canada rebranded its international business class cabin as Air Canada Signature Class, offering an enhanced menu, new amenity kits, a chauffeur service using BMW vehicles, and access to the Air Canada Signature Suite at Toronto Pearson International Airport.
As of 2018, Air Canada renamed the Tango fare class to Standard fare.
In January 2019, Air Canada re-purchased Aeroplan from Aimia Inc.
On 16 May 2019, Air Canada announced it was in exclusive talks to buy Transat A.T., the parent company of Air Transat, for CA$520 million.
On 27 June 2019, Transat A.T. agreed to be purchased by Air Canada for CA$13 per share.
On 11 August 2019, Air Canada raised the purchase price of Transat A.T. to CA$18 per share, bringing the overall value of the deal to $720 million. The acquisition was approved by 95% of Transat A.T. shareholders on 23 August 2019.
In its first quarterly financial report, Air Canada announced it had lost CA$1.05 billion in 2020, compared to a profit of CA$345 million in Q1 2019.
On 18 March 2020, Air Canada announced it would suspend most of its flights by 31 March due to travel restrictions caused by the COVID-19 pandemic.
In October 2020, the agreement to purchase Transat A.T. was revised downwards to CA$5 per share, reflecting the challenges posed by the COVID-19 pandemic.
On 8 November 2020, Air Canada Altitude was renamed Aeroplan Elite Status, with changes to the qualification metrics.
Due to the impact of the COVID-19 pandemic, Air Canada became loss-making again in 2020.
In 2020, Air Canada Altitude and Aeroplan merged, with Aeroplan as the surviving entity.
Trans-Canada Capital's (TCC) team grew the Air Canada pension fund from $23 billion in 2020 to $30 billion in 2024.
On 11 February 2021, the Government of Canada approved the takeover of Transat A.T. by Air Canada.
In April 2021, the Government of Canada acquired 6.4% of Air Canada as part of a $5.9 billion COVID-19 related assistance package.
In April 2021, the planned takeover of Transat A.T. by Air Canada was dropped following a failure to secure approval from the European Commission.
In October 2021, the Government of Canada acquired 6.4% of Air Canada in return for financial support to mitigate the impacts from the COVID-19 pandemic.
In June 2022, Air Canada announced it was cancelling over 150 daily flights in the summer due to unexpected pressure in the aviation industry following the lifting of pandemic restrictions.
In September 2022, Air Canada welcomed the Government of Canada's decision to lift remaining COVID-19 restrictions, including requirements for wearing masks on aircraft, testing and quarantine.
In September 2022, Air Canada welcomed the Government of Canada's decision to lift remaining COVID-19 restrictions, including requirements for the compulsory use of ArriveCAN beginning 1 October 2022 and noted that the measures were not justified by science.
On 23 October 2023, Air Canada announced that it would retrofit the Airbus A321, and 8 of its Airbus A320 aircraft with the A220 standard to replace the XM cabin, which would feature Airspace XL bins, new entertainment screens, exterior cameras, and satellite based Wi-Fi.
As of January 2024, Air Canada flies to 64 domestic destinations and 158 international destinations across Asia, Africa, the Americas, Europe, and Oceania.
On 17 December 2024, Air Canada announced that it would transfer its Boeing 737 MAX 8 aircraft to Air Canada Rouge, creating a hub for Rouge at Vancouver International Airport. Air Canada Rouge's Airbus A320 and A321 fleet will transfer to the mainline fleet.
In 2024, the Government of Canada sold its stake in Air Canada, confirming they did not intend to be a long-term owner of the shares.
Trans-Canada Capital manages Air Canada's pension plan and its $30 billion in assets in 2024.
In August 2025, Air Canada experienced a work stoppage involving more than 10,000 flight attendants represented by the Canadian Union of Public Employees. The strike began on 16 August and led to the cancellation of approximately 130,000 passenger journeys per day.
On March 30, 2026, Air Canada announced that its chief executive, Michael Rousseau, will retire from his position by the end of September 2026.
On March 30, 2026, Air Canada announced that its chief executive, Michael Rousseau, will retire from his position by the end of September 2026.
Air Canada plans to roll out Wi-Fi to its international fleet starting in 2026.
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