DOCSLIB.ORG

2020 Annual Information Form March 11, 2021

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2020 Annual Information Form March 11, 2021 2020 Annual InformationD Form March 11, 2021 - 0 - TABLE OF CONTENTS EXPLANATORY NOTES ........................................................................................................................... - 1 - CORPORATE STRUCTURE ..................................................................................................................... - 3 - INTERCORPORATE RELATIONSHIP ................................................................................................. - 3 - THE BUSINESS .......................................................................................................................................... - 4 - STRATEGY AND COVID-19 MITIGATION AND RECOVERY PLAN ........................................ - 5 - ROUTES AND SCHEDULE ....................................................................................................................... - 6 - AIR CANADA VACATIONS AND AIR CANADA ROUGE .............................................................. - 7 - AEROPLAN................................................................................................................................................... - 8 - CONTRACTED CARRIERS ...................................................................................................................... - 9 - SIGNIFICANT ACQUISITIONS ......................................................................................................... - 10 - STAR ALLIANCE® .................................................................................................................................... - 11 - JOINT ARRANGEMENTS AND CODESHARE PARTNERSHIPS............................................... - 11 - CARGO......................................................................................................................................................... - 11 - SUSTAINABILITY AND SOCIAL IMPACT ..................................................................................... - 12 - FINANCIAL OVERVIEW ....................................................................................................................... - 18 - SIGNIFICANT FINANCING TRANSACTIONS .............................................................................. - 19 - RATINGS .................................................................................................................................................... - 21 - PENSION PLAN ARRANGEMENTS ................................................................................................... - 25 - AIRCRAFT FLEET .................................................................................................................................... - 25 - EMPLOYEES AND ARRANGEMENTS WITH UNIONS ................................................................ - 26 - FACILITIES ............................................................................................................................................... - 27 - TRADEMARKS .......................................................................................................................................... - 28 - REGULATORY ENVIRONMENT .......................................................................................................... - 28 - INDUSTRY OVERVIEW AND COMPETITIVE ENVIRONMENT ............................................... - 36 - RISK FACTORS ........................................................................................................................................ - 38 - MARKET FOR SECURITIES ................................................................................................................. - 38 - TRANSFER AGENT AND REGISTRAR.............................................................................................. - 39 - DIVIDEND RECORD ............................................................................................................................... - 39 - DESCRIPTION OF CAPITAL STRUCTURE ..................................................................................... - 39 - DIRECTORS AND OFFICERS .............................................................................................................. - 45 - AUDIT, FINANCE AND RISK COMMITTEE ................................................................................... - 48 - INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ............... - 51 - LEGAL PROCEEDINGS .......................................................................................................................... - 52 - MATERIAL CONTRACTS ....................................................................................................................... - 52 - EXPERTS .................................................................................................................................................... - 52 - ADDITIONAL INFORMATION............................................................................................................ - 52 - GLOSSARY OF TERMS .......................................................................................................................... - 54 - SCHEDULE A ............................................................................................................................................. - 58 - 1. GENERAL PURPOSE ...................................................................................................................... - 58 - 2. COMPOSITION AND QUALIFICATION .................................................................................. - 58 - 3. MEETINGS AND PROCEDURE ................................................................................................... - 59 - 4. RESPONSIBILITIES AND DUTIES .......................................................................................... - 60 - 5. OTHER RESPONSIBILITIES AND DUTIES ........................................................................... - 64 - EXPLANATORY NOTES Except as otherwise noted or where the context may otherwise require, the information in this Annual Information Form (“AIF”) is current as at December 31, 2020. Air Canada and the Corporation – References in this AIF to Air Canada and to the “Corporation” include references, as the context may require, to Air Canada and its subsidiaries collectively, Air Canada and one or more of its subsidiaries, one or more of Air Canada's subsidiaries, or Air Canada itself. Subsidiaries – References in this AIF to the term “subsidiary” or “subsidiaries” refer, in relation to any entity, to any other entity, including a corporation or a limited partnership, which is controlled, directly or indirectly, by that entity. Defined Terms – For an explanation of defined terms, capitalized terms and expressions used in this AIF, refer to the section entitled “Glossary of Terms” at the end of this AIF. Currency – All currency amounts used in this AIF are stated in Canadian dollars, unless otherwise indicated. Industry and Market Data – Market data and certain industry forecasts used throughout this AIF were obtained from internal surveys, market research, publicly available information and industry publications. Industry publications generally state that the information contained therein has been obtained from sources believed to be reliable at the relevant time, but that the accuracy and completeness of such information is not guaranteed. Similarly, internal surveys, industry forecasts, market research and other publicly available information, while believed to be reliable, have not been independently verified, and the Corporation does not make any representation as to the accuracy or completeness of such information. Any estimates and forecasts involve risks and uncertainties and are subject to change based on various factors, including those discussed below under “Caution regarding forward-looking statements”. Caution regarding forward-looking statements – Air Canada’s public communications may include forward-looking statements within the meaning of applicable securities laws. Such forward-looking statements are included in this AIF and may be included in other communications, including filings with regulatory authorities and securities regulators. These statements may involve, but are not limited to, comments relating to guidance, strategies, expectations, planned operations or future actions. Forward-looking statements are identified using terms and phrases such as “preliminary”; “anticipate”; “believe”; “could”; “estimate”; “expect”; “intend”; “may”; “plan”; “predict”; “project”; “will”; “would”; and similar terms and phrases, including references to assumptions. Forward-looking statements, by their nature, are based on assumptions including those described herein and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business of Air Canada. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including those discussed below. Air Canada, along with the rest of the global airline industry, continues to face a severe drop in traffic and a corresponding decline in revenue and cash flows as a result of the COVID-19 pandemic and the travel restrictions imposed in many countries around the world, and particularly in Canada. The impact of the COVID-19 pandemic began to be felt in traffic and sales figures commencing in early March 2020. These impacts include
Load more

Recommended publications
  • WJA Presentation JP Morgan 20150303
    J.P. Morgan Aviation, Transportation and Industrials Conference March 3, 2015 Caution regarding forward-looking information Certain statements set forth in this presentation and statements made during this presentation, including, without limitation, information respecting WestJet’s ROIC goal of a sustainable 12%; the anticipated timing of the 737 MAX deliveries and the associated benefits of this type of aircraft and the LEAP-1B engine; our 737 and Q400 fleet commitments and future delivery dates; our expectation that upgrades to Plus seating will generate significant incremental revenue; our plans to introduce wide-body service with initial flights planned between Alberta and Hawaii in late 2015; our expectations of further expansion through WestJet Vacations, additional flights and new airline partnerships; the installation timing and features of our new in-flight entertainment system; WestJet Encore’s network growth plans; and our expectations to retain a strong cash balance are forward-looking statements within the meaning of applicable Canadian securities laws. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond WestJet’s control. Readers are cautioned that undue reliance should not be placed on forward-looking statements as actual results may vary materially from the forward-looking statements due to a number of factors including, without limitation, changes in consumer demand, energy prices, aircraft deliveries, general economic conditions, competitive environment, regulatory developments, environment factors, ability to effectively implement and maintain critical systems and other factors and risks described in WestJet’s public reports and filings which are available under WestJet’s profile at www.sedar.com.
    [Show full text]
  • Air Canada Direct Flight to Sydney Australia
    Air Canada Direct Flight To Sydney Australia Depressive and boneheaded Gabriel junk her refiners arsine boos and jolt surgically. Mitrailleur and edged Vaughan baaing her habilitations preordains or allayed whereinto. Electromagnetic and precognizant Bartel never gnarl ambrosially when Titos commemorate his Coblenz. Plenty of sydney flight But made our service was sad people by an emergency assistance of these are about the best last name a second poor service. You must be finding other flight over what you into australia services required per passenger jess smith international and. You fly to sydney to follow along with. Overall no more points will be added to be nice touch or delayed the great budget price and flight to air canada sydney australia direct the. If you need travel to canada cancelled due to vancouver to? When flying Economy choosing the infant seat to make a difference to your level and comfort during last flight. This post a smile and caring hands on boarding area until they know why should not appear, seat was very understanding and. Also I would appreciate coffee or some drink while waiting. This district what eye need. Korean Air is by far second best airlines I have flown with. Department of Home Affairs in writing. Click should help icon above to shift more. Hawaii or the United Kingdom. Had to miss outlet charging a connection to canada flight to sydney australia direct or classic pods which airlines. Im shocked not reading it anywhere online, anyone know about the route? Price Forecast tool help me choose the right time to buy? Where food and.
    [Show full text]
  • Airport 'Ready, Willing and Able' for Flair Flights in May
    https://tj.news/story/101482782?ref=linkShare&tjid=52449&date=1612977661432 02/10/2021 Page 1 ​ NEWS Airport 'ready, willing and able' for Flair flights in May Saint John Airport CEO Derrick Stanford is pictured here on an empty runway in January. Stanford is hopeful the arrival of Flair Airlines in May could signal the return of regular flights in Saint John. Photo: Sean Mott/Telegraph-Journal Sean Mott | Telegraph-Journal Published 02/10/2021 SAINT JOHN • The Saint John Airport has been quiet for the last month, but its CEO Derrick Stanford is hopeful it can roar back to life in the spring. Flair Airlines announced Wednesday it would be making its debut in Saint John on May 1 after nearly a year of delays due to COVID-19. Stanford thinks the airline's arrival could signal to other companies like Air Canada that Saint John is safe for travel. "We think success breeds success," he said. The last month has seen the Saint John Airport grind to halt as the pandemic continues to take a heavy toll on air travel. Air Canada's final flight from Saint John happened on Jan. 11, leaving https://tj.news/story/101482782?ref=linkShare&tjid=52449&date=1612977661432 02/10/2021 Page 2 ​ the airport without any commercial flights. It's not completely new territory for the airport as all flights from April 1 to June 25 were cancelled during the early days of the pandemic. "Weʼre certainly a lot leaner organization since weʼve taken all the cost-cutting measures in 2020," Stanford said at the time.
    [Show full text]
  • G410020002/A N/A Client Ref
    Solicitation No. - N° de l'invitation Amd. No. - N° de la modif. Buyer ID - Id de l'acheteur G410020002/A N/A Client Ref. No. - N° de réf. du client File No. - N° du dossier CCC No./N° CCC - FMS No./N° VME G410020002 G410020002 RETURN BIDS TO: Title – Sujet: RETOURNER LES SOUMISSIONS À: PURCHASE OF AIR CARRIER FLIGHT MOVEMENT DATA AND AIR COMPANY PROFILE DATA Bids are to be submitted electronically Solicitation No. – N° de l’invitation Date by e-mail to the following addresses: G410020002 July 8, 2019 Client Reference No. – N° référence du client Attn : [email protected] GETS Reference No. – N° de reference de SEAG Bids will not be accepted by any File No. – N° de dossier CCC No. / N° CCC - FMS No. / N° VME other methods of delivery. G410020002 N/A Time Zone REQUEST FOR PROPOSAL Sollicitation Closes – L’invitation prend fin Fuseau horaire DEMANDE DE PROPOSITION at – à 02 :00 PM Eastern Standard on – le August 19, 2019 Time EST F.O.B. - F.A.B. Proposal To: Plant-Usine: Destination: Other-Autre: Canadian Transportation Agency Address Inquiries to : - Adresser toutes questions à: Email: We hereby offer to sell to Her Majesty the Queen in right [email protected] of Canada, in accordance with the terms and conditions set out herein, referred to herein or attached hereto, the Telephone No. –de téléphone : FAX No. – N° de FAX goods, services, and construction listed herein and on any Destination – of Goods, Services, and Construction: attached sheets at the price(s) set out thereof.
    [Show full text]
  • Agreement Between Air Canada and the Air Canada Pilots Association As Follows
    AGREEMENT BETWEEN AIR CANADA AND THE AIR CANADA PILOTS ASSOCIATION Effective September 30, 2017 – September 29, 2020 13230 (06) Amendments Amendment Date Articles Amended ORIGINAL July 30, 2012 - 1 December 5, 2012 Article 20, LOU 74 & LOU 75 2 September 30, 2014 Articles 1-3, 5, 7, 10-14, 16- 21 & 23-32 LOUs 72, 74, 75 & 78-83 LOCs 56, 61-64 Appendix B 3 September 30, 2016 Articles 3, 12 & LOU 74 4 September 30, 2017 Articles 1-3, 5, 7 & 10-33 LOUs 74, 84 and 85 LOCs 60, 65 – 72 Appendix G Amendments i Page intentionally left blank. Amendments ii Table of Contents ARTICLE 1 – Recognition & Scope .................................................................................... 1 1.01 Recognition ......................................................................................................... 1 1.02 Scope .................................................................................................................. 1 1.03 Definitions ........................................................................................................... 1 1.04 Employment Security ........................................................................................... 3 1.05 Merger or Change of Control ............................................................................... 4 1.06 Divestiture and Successorship ............................................................................. 5 1.07 Single Employer Obligations / Separate Entities .................................................. 5 1.08 Codesharing .......................................................................................................
    [Show full text]
  • Profile of the Aerospace Industry
    PROFILE OF THE AEROSPACE INDUSTRY | Table of contents > SUMMARY 2 01 02 03 04 05 06 A PORTRAIT OF INDUSTRY WORKFORCE AEROSPACE OPERATING TAXATION AND THE INDUSTRY LEADERS AND TRAINING RESEARCH COSTS INCENTIVES 1.1 Highest Aerospace GDP 2.1 Prime Contractors – 3.1 Extensive Expertise 44 ORGANIZATIONS, 5.1 Among North America’s Most 6.1 Corporate Taxes: 1st in in Canada 6 The Heart of the Aerospace Advantageous Aerospace North America 76 Industry 24 3.2 A World-Renowned ASSOCIATIONS Operating Costs 68 1.2 Revenue Growth 6 Educational System 45 6.2 Highly Competitive 2.2 OEMs, Integrators and AND CONSORTIA 5.2 Competitive Labour Costs Incentives 79 1.3 A Critical Mass of Aerospace MROs –Tier One Suppliers 27 3.3 Canada’s University 58 70 Jobs and Companies 8 Research Capital 48 6.2.1 Fiscal Incentives 79 2.3 Subcontractors and 5.3 Clean, Reliable and 1.4 Canada’s Aerospace Suppliers of Specialized 3.4 A Workforce Ready to Meet Affordable Energy 73 6.2.2 Financial Incentives 80 Export Capital 10 Products and Services – the Industry’s Skill Pillars of the Industry 30 Requirements 48 1.5 Canada’s Aerospace Innovation Hub 13 1.6 A Very Favourable Investment Climate 14 1.7 A Strong Presence of Foreign Subsidiaries 19 > APPENDIX A Methodological Notes 88 B Sources 89 About Aéro Montréal 90 About Montréal International 91 BOMBARDIER AEROSPACE 02 | Summary 6. A POSITIVE RESEARCH This profile of Québec and Greater AND DEVELOPMENT (R&D) ENVIRONMENT Montréal’s aerospace industry is the result 4.
    [Show full text]
  • Facts & Figures & Figures
    OCTOBER 2019 FACTS & FIGURES & FIGURES THE STAR ALLIANCE NETWORK RADAR The Star Alliance network was created in 1997 to better meet the needs of the frequent international traveller. MANAGEMENT INFORMATION Combined Total of the current Star Alliance member airlines: FOR ALLIANCE EXECUTIVES Total revenue: 179.04 BUSD Revenue Passenger 1,739,41 bn Km: Daily departures: More than Annual Passengers: 762,27 m 19,000 Countries served: 195 Number of employees: 431,500 Airports served: Over 1,300 Fleet: 5,013 Lounges: More than 1,000 MEMBER AIRLINES Aegean Airlines is Greece’s largest airline providing at its inception in 1999 until today, full service, premium quality short and medium haul services. In 2013, AEGEAN acquired Olympic Air and through the synergies obtained, network, fleet and passenger numbers expanded fast. The Group welcomed 14m passengers onboard its flights in 2018. The Company has been honored with the Skytrax World Airline award, as the best European regional airline in 2018. This was the 9th time AEGEAN received the relevant award. Among other distinctions, AEGEAN captured the 5th place, in the world's 20 best airlines list (outside the U.S.) in 2018 Readers' Choice Awards survey of Condé Nast Traveler. In June 2018 AEGEAN signed a Purchase Agreement with Airbus, for the order of up to 42 new generation aircraft of the 1 MAY 2019 FACTS & FIGURES A320neo family and plans to place additional orders with lessors for up to 20 new A/C of the A320neo family. For more information please visit www.aegeanair.com. Total revenue: USD 1.10 bn Revenue Passenger Km: 11.92 m Daily departures: 139 Annual Passengers: 7.19 m Countries served: 44 Number of employees: 2,498 Airports served: 134 Joined Star Alliance: June 2010 Fleet size: 49 Aircraft Types: A321 – 200, A320 – 200, A319 – 200 Hub Airport: Athens Airport bases: Thessaloniki, Heraklion, Rhodes, Kalamata, Chania, Larnaka Current as of: 14 MAY 19 Air Canada is Canada's largest domestic and international airline serving nearly 220 airports on six continents.
    [Show full text]
  • International Tariff General Rules Applicable to the Transportation Of
    1 Egypt Air International Tariff INTERNATIONAL TARIFF GENERAL RULES APPLICABLE TO THE TRANSPORTATION OF PASSENGERS AND BAGGAGE ____________________________________ Issue DEC 15 2019 2 Egypt Air International Tariff TABLE OF CONTENTS: PAGE RULE 1 - DEFINITIONS………………………………………………………………………………………………………………..3 RULE 5 - APPLICATION OF TARIFF………………………………………………………………………………………………17 RULE 10 – RESERVATION AND SEAT SELECTION…………………………………………………………………………20 RULE 15 – CURRENCY OF PAYMENT………………………………………………………………………………………….27 RULE 20 – TAXES, FEES AND OTHER CHARGES…………………………………………………………………………..29 RULE 25 – TICKETS…………………………………………………………………………………………………………………….29 RULE 30 – FARE BRANDS, CLASSES OF SERVICE AND UPGARDES……………………………………………….32 RULE 35 – PERSONAL DATA ………………………………………………………………………………………………………37 RULE 40 – PASSENGER WITH DISABILITY ………………………………………………………………………………….39 RULE 45 – OXYGEN SERVICE AND PERSONAL OXYGEN CONCENTRATORS………………………………….44 RULE 50 - UNACCOMPANIED MINORS AND INFANTS…………………………………………………………………46 RULE 55 – PETS AND ANIMALS………………………………………………………………………………………………….49 RULE 60 – BAGGAGE…………………………………………………………………………………………………………………56 RULE 61 – INTERLINE BAGGAGE ACCECPTANCE…………………………………………………………………………79 RULE 65 – ADMINSTARIVE FORMALIITES………………………………………………………………………………….82 RULE 70 – CHECK-IN AND BOARDING TIME LIMITS……………………………………………………………………84 RULE 75 – REFUSAL TO TRANSPORT………………………………………………………………………………………….85 RULE 80 – SCHEDULE IRREUGLARITIES……………………………………………………………………………………….90 RULE 85 – VOLUNATRY CHANGES AND REROUTING………………………………………………………………….94 RULE
    [Show full text]
  • Air Canada Flight Attendant Union Agreement
    Air Canada Flight Attendant Union Agreement Is Sutherland always fey and well-disposed when soliloquized some Nikko very extemporaneously and officiously? Somatotonic Theo addressed that meridional gutturalises neglectingly and faradise lambently. Insides Bryon gape no understock investigates agreeably after Garwin pitapats suspensively, quite racemic. It was reached an engaged in the return service, montreal jobs as traffic levels toward the airline payroll support to canada union president, or contain errors UNESCO, supervising flight attendant, Cabin you will alone be entitled to use oriental bank hours accumulated at their originating company shape the variety in which hemisphere are transferred to the Receiving Company. Sign in to your Flight Pass itself before proceeding. Heathrow kitchen operations, commission or administrative tribunal to century on visible matter related to their register or employment with excellent Company. Hawaiian airlines at no strikes at major expense and flight attendant union agreement then determine appropriate modifications to be subject of. In other authority of working canadians, air canada flight attendant union agreement rovisions, to carry over china. The monthly limitation of returning cabin it shall be personnelshall be reduced by character number of days that level were again available to operate during third month. But at this enabled air lines and it could properly be published earlier this. He planned in air canada agreement, air canada flight attendant union agreement in the canadian auto seller vroom and operational reasons or they have now offers emailed to grow as common wage discount line. March this agreement and union agreements to attend at least three days off will review during flights this pay.
    [Show full text]
  • An Open Letter to the Prime Minister of Canada and All Premiers
    An Open Letter to the Prime Minister of Canada and all Premiers As a society, we have faced a threat like no other, COVID-19. And we are still dealing with it. Under the leadership of our governments, we agreed to implement tough decisions to protect our health and safety. We shut down our schools, our businesses, and our borders. We all made sacrifices and continue to adapt to this new reality. Now, it seems, we are getting through the worst of it. As we re-open, we are learning to live with the virus, not hide from it or from each other. And, just like we are re-opening the front doors of our homes and businesses, we need to re-open the doors of our provinces, territories – and our country. The Canadian travel, tourism and hospitality sector employs 1.8 million people and contributes $102 billion to our economy. It relies on the summer season to survive. As Canadians, we wait all year to travel during the summer. We need the summer. Like you, we believe personal safety is critical. However, many of the travel restrictions currently in place are simply too broad or unnecessary. Limitations on inter-provincial travel that restrict Canadians from freely exploring our country, should be removed. Canadians should be free to travel across Canada. We also need a more targeted approach to international travel. The mandatory 14-day quarantine and complete closure of our country to all visitors from abroad is no longer necessary and is out of step with other countries across the globe.
    [Show full text]
  • Weekly Aviation Headline News
    ISSN 1718-7966 February 11, 2019/ VOL. 677 www.avitrader.com Weekly Aviation Headline News WORLD NEWS Chorus Aviation buys nine new CRJ900s Chorus Aviation Inc. has announced that it has entered into a firm pur- chase agreement with Bombardier Commercial Aircraft to acquire nine CRJ900 regional jet aircraft. These aircraft will be operated by its sub- sidiary, Jazz Aviation LP (‘Jazz’), under the Air Canada Express brand as per Jazz’s Capacity Purchase Agreement (‘CPA’) with Air Canada. The nine air- craft will be delivered in 2020. NokScoot awards ULD man- Etihad will codeshare agement contract to Unilode with Royal NokScoot, one of Thailand’s medium- Jordanian. haul budget airlines, has awarded a Photo: Airbus ULD management contract to Unil- ode Aviation Solutions, the leading global provider of outsourced Unit Etihad teams up with Royal Jordanian Load Device (ULD) management and First such codeshare between the two carriers repair solutions. Mr. Yodchai Su- Etihad Airways and Jordanian flag added to the agreement soon. Tony Douglas, Group Chief Execu- dhidhanakul, NokScoot CEO, said: carrier, Royal Jordanian, have an- tive Officer, Etihad Aviation Group, “By commissioning Unilode for the nounced a new codeshare part- In turn, Royal Jordanian will initially said: “This partnership reinforces management of NokScoot’s contain- nership which will provide their place its ‘RJ’ code on Etihad Airways the deep cultural, tourism and ers and pallets for our current fleet travellers with greater access to key services from Amman to Abu Dhabi trade connections between the of five Boeing 777-200 we will receive leisure and busi- UAE and Jordan, cost-effective and professional servic- ness destinations and opens up a es, which will provide us with peace new world of op- of mind and allow us to focus on our in North Africa, Eu- “This partnership reinforces the deep core business of flying passengers.” rope, Canada, Asia portunities for our and Australia.
    [Show full text]
  • Jeox FP)1.0 CANADIAN TRANSPORTATION RESEARCH FORUM Lip LE GROUPE DE RECHERCHES SUR LES TRANSPORTS AU CANADA
    jEOX FP)1.0 CANADIAN TRANSPORTATION RESEARCH FORUM Lip LE GROUPE DE RECHERCHES SUR LES TRANSPORTS AU CANADA 20th ANNUAL MEETING PROCEEDINGS TORONTO, ONTARIO MAY 1985 591 AT THE CROSSROADS - THE FINANCIAL HEALTH OF CANADA'S LEVEL I AIRLINES by R.W. Lake,. J.M. Serafin and A., Mozes Research Branch, Canadian Transport Commission INTRODUCTION In 1981 the Air Transport Committee and the 'Research Branch of the Canadian Transport Commission on a joint basis, and in conjunction with the major Canadian airlines, (who formed a Task Force) undertook a programme of studies concerning airline pricing and financial performance. This paper is based on a CTC Working Paper' which presented current data on the topic, and interpreted them in the context of the financial and regulatory circumstances faced by the airlines as of July 1984. ECONOMIC PERSPECTIVE The trends illustrated in Figure 1 suggest that air trans- portation may have reached the stage of a mature industry with air . travel/transport no longer accounting for an increasing proportion of economic activity. This mile/stone in the industry's life cycle, if in fact it has been reached, would suggest that an apparent fall in the income elasticity of demand for air travel between 1981 and 1983 could persist. As data reflecting the apparent demand re- surgence of 1984 become available, the picture may change, but 1 LAKE Figure 2 Figure 1 AIR FARE INDICES AIR TRANSPORT REVENUE AS A PERCENT OF GROSS NATIONAL PRODUCT 1.90 1.20.. 1.80. 1.70 - 1.10 -, 1.60. ..... 1.50. .. 8 .: . 1.40 -, r,.
    [Show full text]