Bureau leads Air Canada to global expansion

I cannot remember a time when Air Canada was not an airline travel option. The problem was that the carrier had limited routes, and seats were not competitively priced. The good news is that Air Canada has morphed from being a carrier waiting in the wings to becoming a major international participant in the airline industry and is a serious contender for business and leisure travel.

Opportunity for Growth

Internationally there are over 2,000 airlines operating more than 23,000 aircraft providing service to over 3,700 airports. In 2006, there were 28 million scheduled flight departures carrying over 2 billion passengers. World air travel has averaged an approximate growth of 5 percent each year over the past 30 years. The annual growth in GDP is expected to double over the next decade.

In the US there are over 100 certified passenger airlines who operate over 11 million flight departures each year. In 2006 over 745 million passengers traveled by air, generating $160 billion in total revenues. The industry employs in excess of 545,000 personnel and there are over 8,000 aircraft operating 31,000+ flights each day. Commercial aviation contributes 8 percent of the US GDP.

Rivalry for Canadian Space

The airline industry is highly competitive and in 2014, 71 Canadian low-cost and other carriers were interested in, expanded into, or announced intentions of competing in many of Air Canada’s key domestic, regional, trans-border and leisure markets. Taxes, charges and fees for passengers departing from Canada for the US present a challenge for Air Canada’s pricing structure. Globally the carrier faces increasing competition as other airlines grow their international capacity (either through expansion and/or shifting existing domestic capacity to international operations) in an attempt to avoid low-cost domestic competition.

She is Very Beautiful

The good news and bad news is that Air Canada has attractive gateways (i.e., Toronto, Montreal, and Vancouver) – making the company highly attractive and seductive to other carriers. In 2014 Air France-KLM, AeroMexico, EVA Air, China Airlines, China Eastern, and others showed interest in or announced intention to enter or expand their international operations into Canada via these gateways.

Humble Beginnings. Dynamic Future

Air Canada started carrying mail and passengers in 1937 as a subsidiary of Canadian National Railways with one route linking Vancouver, BC with Seattle, Washington. Over the years it has expanded and today Air Canada flies to 180 destinations on five continents and is the 20th largest airline in the world with more than 35 million customers. Air Canada passengers currently have access to approximately 1,321 destinations in 193 countries, and enjoy reciprocal participation in frequent flyer programs and use of airport facilities through membership in the Star Alliance, the world’s largest airline association.

In 2013 Air Canada was the only international network carrier in North America to receive a Four-Star ranking from Skytrax. In the same year, it was voted the Best North American Airline for International Travel and Best North American Airline Inflight Experience by Business Traveler Magazine and Premier Traveler Magazine presented it with the Best North American Airline for International Travel and Best Flight Attendants in North America awards.

In 2014 the Ipsos Reid Canadian Business Traveler Study determined that Air Canada was Canada’s Favorite Airline for Business Travel. It is also the preferred airline for 83 percent of Canadian frequent business travelers. AirlineRatings.com determined it is the Best Long Haul Airline (Americas) based on ratings of 450 airlines globally. In 2015 Air Canada was determined, for the second consecutive year, to be one of Canada’s Top 100 Employers – in an annual survey by Mediacorp Canada.

A Foundation of Quality

Maintaining quality is always a challenge and running a global airline operation like Air Canada requires individuals with unique skill-sets. A recent Air Canada search for a Vice President of Sales required the company to reach all the way to Kuala Lumpur to recruit Duncan Bureau who was, at the time, a c-suite executive with Malaysia Airlines. Bureau holds a Bachelor of Commerce degree in Accounting and Finance from the University of Lethbridge in Alberta in addition to having a rich airline background that includes years with West Jet and Canadian Airlines in revenue management, network planning, financial reporting, annual budget and strategic planning.

Since 2014 Bureau has brought his ability to develop on-going relationships across the industry to expanding the power, reach and prestige of Air Canada to global markets. He has a well-earned reputation for working with key corporate, trade and distribution partners and it is these skills that are expanding the airlines products and channels of distribution – worldwide.

Bureau is tasked with transforming Air Canada into a global brand that is recognized as providing leading products and services onboard and at airports around the world. Recently Air Canada introduced Boeing 787 Dreamliners into the fleet and is offering International Business Class passengers’ new comfort in the lie-flat seats, a Premium Economy cabin and an enhanced flight entertainment system. Air Canada currently holds a strong position in the Canadian aviation industry representing nearly 51 percent of domestic seat share (January 5-11, 2015) and 34 percent share of international seats.

It is Not Red It Is rouge

Air Canada is the Canadian flag carrier and a recent reconfiguration created a new product, a low-cost subsidiary known as rouge. This new product is well-positioned to boldly enter the global marketplace for it has established a solid financial footing. The low-cost rouge, launched in mid-2013, operates a fleet of 20 A319s and 8 767-300ERs and is a force in long-haul leisure service. Travel destinations on rouge include Europe, the Caribbean, Central America, Mexico, the US and Canada.

Going There? Transit Through Canada

Air Canada has made it easier for some of their international Asian passengers to get from “here to there.” Passengers on Air Canada, Air Canada rouge, and Air Canada Express flying to the USA are able to access the Canadian governments program, Transit without Visa (TWOV) and the China Transit Program (CTP) which enables those who are transiting through either Toronto Pearson International (Terminal 1) or Vancouver International Airport, to travel to/from the US without obtaining a Canadian temporary resident visa.

This program is available for citizens from Indonesia and Taiwan holding a valid passport from the approved country and a USA visa valid upon US arrival. The China Transit Program is for people travelling to Canada from Beijing, Guangzhou, Hong Kong, Manila, Seoul Incheon, Shanghai, Taipei, Tokyo-Haneda and Tokyo Narita, who hold a Chinese passport and a USA visa.

International Expansion

Air Canada is the largest foreign operator in the US and its marketing strategy includes encouraging US business travelers from the US northeast flying to Asia and Europe to use its carriers – transiting through Toronto, Montreal or Vancouver onto other cities.

In 2014 international expansion brought Air Canada to Milan, Tokyo-Haneda, Rio de Janeiro and Panama City with Air Canada rouge servicing Nice, Lisbon and Manchester. In 2015 route expansion spread to Amsterdam, Dubai and other global destinations while rouge expanded routing now includes Osaka. In November, Air Canada is launching non-stop service between Toronto and New Delhi, ending a 10-year absence. The route, the first dedicated for Air Canada’s Boeing 787-9 series aircraft, will grow the Toronto Pearson hub. The flight is targeted to both leisure and business travelers seeking access to the capital region of India, the fourth most populated urban area on the planet. It will also provide access to connecting flights within India and throughout Southeast Asia via the Star Alliance.

Air Canada flies throughout Canada and the US as well as to Australia, China, Denmark, France, Japan, New Zealand and Mexico. Air Canada rouge will offer stops to Florida, the Bahamas, Barbados, Hawaii, Mexico and Panama.

Consumers Get Lucky

Air Canada executives have positioned the airline to be a major player in the aviation industry by building on the recognized and respected brand, offering an extensive and expanding global network, continuing cooperation with the Star Alliance, a mix of fleets that are flexible for scheduling and pricing strategies, on-going interest in improving ground-level services available to their passengers, and offering a meaningful loyalty program. From a consumer point-of-view, with American airline options shrinking and taking the notion of competition out of the marketing – mix, the growing presence of Air Canada as a major contender is likely to be a win-win situation – for the consumer and for Air Canada.