CITIZENS OF THE WORLD

CORPORATE SUSTAINABILITY REPORT 2014

The only Four-Star

international network
carrier in North America
CONTENTS
At a glance 3
Letter from the CEO 4
Sustainability performance highlights 5
Financial performance 6
Overview 8

FOUR PILLARS
• Safety 14

• Environment 24

• Employees 36

• Community 49

CITIZENS OF THE WORLD 2014 2

AT A GLANCE
In fulfillment of its commitment to The report has been prepared in accordance with the
regularly update stakeholders on its principles developed by the Global Reporting Initiative
(GRI), an internationally-recognized standard for
corporate sustainability activities,
corporate reporting of economic, environmental and
Air Canada presents Citizens of the social performance. Development of the report was
World 2014, its most recent the responsibility of a 15-member steering committee
corporate sustainability report. composed of senior managers representing all major
branches of Air Canada and chaired by the Vice
The following document has been approved by
President of Corporate Communications. Air Canada
Air Canada’s Board of Directors and is structured
declares that its 2014 report has been prepared in
around four broad areas – safety, environment,
accordance with the Core option of the Global
employees and community – identified as being of
Reporting Initiative G4 guidelines.
primary concern in stakeholder consultations.
It also encompasses the Air Canada Leisure Group,
consisting of Air Canada rouge® and Air Canada
Vacations®, two wholly-owned operating subsidiaries
of Air Canada.

CITIZENS OF THE WORLD 2014 3

 August 11, 2015

INTRODUCTORY LETTER
FROM CALIN ROVINESCU
In a world beset by concerns about such issues as the
environment, the availability of good jobs and the health and
well-being of the vulnerable, any lasting solutions must begin from
the premise that we each bear responsibility for how our actions
affect others. This is the essence of sustainability.
We at Air Canada fully embrace this notion and it guides our
behaviour, both as a company and as individuals. In all that we do,
we consider the impact of our activities on the communities where
we operate. Even more, we actively participate in building these
communities to make them stronger, healthier, more prosperous
and enjoyable.
To demonstrate this commitment, Air Canada is pleased to present
Citizens of the World, Air Canada’s 2014 Corporate Sustainability
Report. This is our fourth edition of the report and, as with each previous edition, it improves upon the prior year
with fuller disclosure and more quantified reporting of our activities in the areas of most concern to our
stakeholders: safety, the environment, our employees and community investments. For the first time, we have
obtained third-party, limited assurance for select indicators to better validate our disclosure.
Citizens of the World is more than a retrospective. In addition to evaluating the previous year’s activities, our
reports also contain new goals for the coming year that we will duly update in the next edition so our progress
can be measured. Among these, key for 2015 is adopting a Corporate Sustainability Mission Statement that
will help direct our sustainability efforts and more tightly bind us to our commitments.
Lastly, although an understanding of the importance of sustainability already permeates our organization, the
annual process of collecting information and preparing a report reinforces this awareness. By recording our
accomplishments, disclosing our shortcomings and setting goals for which we can be held accountable, this
exercise plays a critical role in focusing the entire organization on our shared responsibilities.
I am therefore proud to present Air Canada’s 2014 sustainability report and look forward to more reports on our
progress in the future. I invite you to take part and assist us by providing feedback, either on this report or our
sustainability programs more generally, through sustainability.‌developpement_durable@aircanada.ca
Sincerely,

CITIZENS OF THE WORLD 2014 4

SUSTAINABILITY PERFORMANCE HIGHLIGHTS

KEY ACHIEVEMENTS 2014 KEY GOALS FOR 2015

• SAFETY Successfully completed the biennial IATA Successfully complete Transport Canada Program
Operational safety audit (IOSA) Validation Inspection

Achieved a reduction in costs and days lost Enhance safety risk management associated with
new international routes and new initiatives
Developed the safety procedures for the 787 aircraft
Reduce Lost Time Injuries by eight per cent

• ENVIRONMENT Continued to advance greenhouse gas (GHG) Advance GHG emission reductions including the
reductions through the four pillar approach retrofit of winglets on additional Boeing 767 aircraft
and the launch of a new fuel optimization program
Continued to improve methods for measuring for our fleet
Air Canada’s environmental footprint
Improve communications to stakeholders by
Completed the sustainable aviation biofuel redesigning the Leaveless website
feedstock assessment
Work with partners to expand the scope of the
Responsible Travel and Tourism Forum’s annual
leadership awards to support the broader
environmental sustainability initiatives

• EMPLOYEES Successfully launched a leading edge employee Increase front line training by at least 50 per cent
portal which has improved access to information,
facilitated collaboration and enhanced Launch a Leadership Development program called
communication between employees Leading the ACWAY

Increased emphasis on diversity Negotiate new CUPE and UNIFOR contracts

Increased emphasis on communication,

teaming and customer focused engagement

• COMMUNITY The Air Canada Foundation1 exceeded its Increase the Air Canada Foundation’s financial
fundraising target goals grants to charities by 25 per cent over previous year

Increased Air Canada’s presence in regional Achieve fundraising target of $1 million for the
communities 4th annual edition of Air Canada Foundation
Golf Tournament
Incorporated the Air Canada Foundation in
Air Canada’s Brand Marketing Initiatives Expand our presence in local communities with an
increased management presence in local events and
management dialogue with local stakeholders

1 The Air Canada Foundation is a stand-alone not-for-profit charitable organisation

FINANCIAL PERFORMANCE
STRATEGY OPERATIONAL PERFORMANCE
Air Canada’s goal is to fully develop as a leading 2013 2014
global airline, to be among those with the highest Revenue passenger miles (RPM) (millions) 56,791 61,616
levels of customer experience, employee engagement Available seat miles (ASM) (millions) 68,573 73,889
and value creation for shareholders and other Passenger Load factor (%) 82.8% 83.4%
stakeholders. Passenger revenue per RPM (Yield) (cents) 19.1 18.9
Passenger revenue per ASM (PRASM) (cents) 15.9 15.8
Operating revenue per ASM (cents) 18.1 18.0
KEY PRIORITIES Operating expense per ASM (CASM) (cents) 17.2 16.9

Air Canada’s global strategy for sustained value

creation and profitability is based on the following
EXPENSE BREAKDOWN
four key priorities: Canadian dollars in millions

REVENUE ENHANCEMENT AND Aircraft fuel 3,747

COST TRANSFORMATION Wages, salaries, and benefits 2,282
Capacity purchase agreements 1,182
INTERNATIONAL GROWTH Airport and navigation fees 1,031
Aircraft maintenance 728
Sales and distribution costs 672
CUSTOMER ENGAGEMENT Depreciation, amortization
and impairment 543
Ground package costs 377
CULTURE CHANGE Aircraft rent 313
Food, beverages and supplies 309
CIT 204
Other 1,069
FINANCIAL PERFORMANCE Total 12,457

Canadian dollars in millions, except where indicated 2013 2014

Operating revenues 12,382 13,272
Operating expenses 11,763 12,457
REVENUE BREAKDOWN
Canadian dollars in millions
Operating income 619 815
Non-operating expense (617) (710)
Net income 10 105
PASSENGER
Unrestricted liquidity at December 31 2,364 2,685 OPERATING
REVENUE
REVENUE
Net income per share - Diluted $0.02 $0.34 BREAKDOWN
BREAKDOWN
BY MARKET

• Passenger 11,804 • Canada  4,381

• Cargo 502 • US Transborder  2,379
•Total13,272
Other 966 • Atlantic 2,554
• Pacific  1,710
•System
Other 

780
11,804

For additional information, including an explanation of certain terms used in these tables, refer to Air Canada’s 2014 Management’s Discussion and Analysis of Results of Operations and Financial Condition dated February 11, 2015 and
Air Canada’s consolidated financial statements for the year ended December 31, 2014, both of which are available on Air Canada’s website at aircanada.com and on SEDAR at www.sedar.com.

CITIZENS OF THE WORLD 2014 6

 AMONG

20 LARGEST AIRLINE IN THE WORLD

$13.27 OPERATING REVENUE

BILLION

1,500 AVERAGE DAILY FLIGHTS

APPROX.

28,000 EMPLOYEES* AROUND

THE WORLD

50 U.S.
DESTINATIONS

61 CANADA

75 INTERNATIONAL

*Includes employees at
Air Canada, Air Canada rouge®
and Air Canada Vacations®
CITIZENS OF THE WORLD 2014 7
OVERVIEW
As Canada’s largest passenger
airline, Air Canada operates the
most scheduled flights in each of
the domestic, U.S. and international
markets for air travel within, to and
from Canada.
In 2014, Air Canada, together with its leisure carrier Air Canada is among the 20 largest commercial
Air Canada rouge® and its Air Canada Express® airlines in the world by traffic. In 2014 it had
regional partners, operated 1,500 daily flights on operating revenue of $13.3 billion (all figures
average. With a fleet of 365 aircraft at year-end, Canadian dollars) which places it among the largest
the combined entity served more than 38 million 100 corporations by revenue in Canada. The
customers, providing direct passenger service to company’s headquarters are located in Montreal and
more than 186 destinations on five continents. it employs approximately 28,0001 people in Canada
Air Canada is a founding member of the and 28 other countries throughout the world.
Star Alliance® of carriers, making it part of the
world’s most comprehensive air transport network,
serving over 1,300 destinations in 193 countries
worldwide.

1 Includes employees at Air Canada, Air Canada rouge® and Air Canada Vacations®

CITIZENS OF THE WORLD 2014 8

ECONOMIC FOOTPRINT
Given the size of its annual operating expenditures
(nearly $12.5 billion in 2014 – including annual
salaries, wages and benefits exceeding $2.3 billion),
Air Canada’s economic footprint is large. Its
contribution is estimated at more than 50 per cent of
all aviation activity in Canada, including that of
foreign airlines operating into the country. One
indicator of the significance of its impact is the fact
that the four largest airlines in Canada alone have an
estimated total economic output of approximately
$35 billion, including multiplier effects, and they
sustain at least 268,000 jobs.1
Founded in 1937 as Trans-Canada Air Lines, the
carrier was initially owned by the Government of
Canada which created it to provide passenger and
cargo air services for Canadians. In 1965 the
company’s name was changed to Air Canada,
reflecting the linguistic duality of the country. The
company was fully privatized by 1989 through a
public share offering and today Air Canada’s shares
(AC) trade on the Toronto TSX exchange where
they returned 60 per cent in 2014, well above the
S&P/TSX Composite’s 10.5 per cent total return for
the year.

186
DESTINATIONS
FINANCIAL SERVED WORLDWIDE
SUSTAINABILITY
The global airline industry has long been
characterized by single-digit margins, intense
competition and sensitivity to economic fluctuations
and geopolitical events. Business risk is always
present and must be managed.2 Historically, this has
38 MILLION
CUSTOMERS FLOWN IN 2014
been especially true for traditional network or legacy
carriers such as Air Canada. After a difficult period
that affected the entire industry in the first decade of
the 21st century, Air Canada has entered into a period
of growth and is pursuing a strategy to secure
sustainable profitability over the long term. 365
THE NUMBER OF
AIRCRAFT IN THE FLEET
1 Source: National Airlines Council of Canada
2 GRI information can be found on aircanada.com>About Air Canada>Corporate Sustainability
Reports>2014 Corporate Sustainability Report>2014 GRI and for a discussion of risk factors in
Management’s Discussion and Analysis of Results of Operations, February 11, 2015, page 69 CITIZENS OF THE WORLD 2014 9
 $531 MILLION
AIR CANADA’S ADJUSTED NET
INCOME IN 2014

In 2014, Air Canada generated adjusted net income objective of maintaining that ratio below 3.5. For
of $531 million ($1.81 per diluted share), exceeding several years, Air Canada, like many corporations
the previous year’s record by $191 million ($0.61 per with defined benefit employee pension plans, had
diluted share) or by 56.2 per cent. On a GAAP basis, been dealing with a significant solvency deficit in
annual net income was $105 million ($0.34 per excess of $4 billion in 2012 primarily due to low
diluted share), up from $10 million ($0.02 per diluted interest rates and market returns. However, by 2014
share) in the prior period. EBITDAR (earnings before the Canadian plans had moved into a surplus
interest, taxes, depreciation and aircraft rent), position and the trend continued through 2014,
excluding the impact of benefit plan amendments, so that its Canadian plans ended the year with
was $1.67 billion, an improvement of 16.6 per cent an estimated $780 million surplus, dramatically
over 2013. improving the company’s financial flexibility and
overall risk profile.1 This has resulted in a very
positive outcome for Air Canada’s approximately
LIQUIDITY 28,000 employees2 and 28,000 retirees.
All of these results are indicative of the progress
The company ended the year with nearly $2.7 billion Air Canada is making through a corporate strategy
in liquidity, well above the minimum liquidity level of based on four key priorities. They include cost
$1.7 billion it had targeted. Adjusted net debt grew in structure transformation, international expansion,
2014 to $5.1 billion primarily as a result of the promoting customer engagement and effecting
financing of new aircraft purchases; however, the culture change among employees. During 2014,
adjusted net debt to trailing 12 month EBITDAR ratio the company achieved notable success in each of
at was 3.1 at year end, which was well within the these areas.3
1 Management’s Discussion and Analysis of Results of Operations, February 11, 2015, page 52
2 Includes employees at Air Canada, Air Canada rouge® and Air Canada Vacations®
3 Management’s Discussion and Analysis of Results of Operations, February 11, 2015, page 7
CITIZENS OF THE WORLD 2014 10
GOVERNANCE
Air Canada is governed by an eleven-member Board
of Directors committed to meeting high standards
of corporate governance in all aspects of the
Corporation’s affairs. The Board and management
believe that a strong, effective, independent Board
plays a crucial role in promoting the interests of
stakeholders, maximizing shareholder value and
ensuring ethical business practices. This is of major
importance to the company and its stakeholders, who
both rate ethical business practices and policies highly
in the materiality index of sustainability issues affecting
the company, upon which this report is based.

In 2014, the Board reviewed the Corporation’s

governance practices and concluded that they
comply with or exceed the requirements of National
Instrument 58-101, Disclosure of Corporate Governance
Practices. Air Canada regularly reviews its governance
practices as developments warrant and continues to
monitor changes closely and implement required ETHICS HOTLINE
updates to its governance practices as the need arises.
All employees are required to abide by the Code of
Based on the 2014 management proxy circular and Conduct and management employees are required
other public filings, Institutional Shareholder Services, to acknowledge annually their undertaking in this
Inc. (ISS) ranked Air Canada in the first decile in regard. In addition, Air Canada encourages
respect of corporate governance, for the second employees to report any concerns, including
consecutive year, which is the highest ranking given to through an anonymous Ethics Reporting Hotline
approximately ten per cent of the 250 companies in that is actively promoted throughout Air Canada.
the S&P/TSX Composite Index and represents the All Hotline reports are promptly investigated and
lowest governance risk. followed-up to closure.

CODE OF CONDUCT COMPLIANCE

As a means of living up to applicable corporate Consistent with its stated goal of improving
governance standards and maintaining best practices, its Standard Operating Procedure and Policy
Air Canada adopted and updates, as required, its Compliance in 2013, Air Canada appointed a full
Corporate Policy and Guidelines on Business time General Compliance Officer (GCO), within
Conduct, better known as the Air Canada Code of the corporate Law Branch. In 2014, Air Canada
Conduct.1 Among other things, the Code addresses: established a Compliance Review Board as a
compliance with laws (including those related to management committee responsible for oversight
competition and anti-corruption), privacy, of compliance programs and culture. The GCO
discrimination and harassment, fair dealing with developed a comprehensive Compliance Risk
other people and organizations, conflicts of interest Assessment (CRA) process, methodology and
and reporting suspected non-compliance. related working tools for evaluating and measuring
1 A complete copy of this document can be obtained on SEDAR at www.sedar.com or on the
Air Canada website at www.aircanada.com. CITIZENS OF THE WORLD 2014 11
all material legal, regulatory, policy and contract
risks integrated within Air Canada’s Enterprise Risk
SUSTAINABILITY
Management Program. The GCO operates pursuant
Each year since 2012 the airline has published a
to an Annual Compliance Plan concept using related
comprehensive sustainability report in accordance
working tools for the management of and reporting
with the reporting principles of the Global
on risk mitigation programs in response to the CRA
Reporting Initiative (GRI).
determinations and priorities.
In 2014, in order to reinforce the ongoing
Air Canada’s integrity and compliance standards
commitment to sustainability at Air Canada, the
are further promoted by more detailed policies,
company established a senior management
guidelines and training that address critical laws
standing committee responsible for overseeing
and regulations, employment practices and ethical
sustainability activities and reporting on the
standards. It also employs a communications
company’s progress. Moreover, the company also
strategy to raise awareness of corporate values,
undertook a new Materiality survey of stakeholders,
principles and internal controls. Branches are
including customers, suppliers and employees. The
provided with information, tools and techniques –
results of the 2014 sustainability report are based
including templates, registers and guidance
on how well the company addressed material issues
documents – to help them meet program
identified in the survey.
requirements.
Finally, in order to independently validate the results
The independence of the integrity and compliance
of Air Canada’s sustainability efforts, for the first
programs is assured by the GCO’s reporting stream
time Air Canada has obtained third party, limited
to the Board’s Audit, Finance and Risk Committee.
assurance for select GRI indicators. The firm of Ernst
& Young has been retained to review and assure at
least one key indicator in each of the areas of
safety, the environment and governance, which
were all identified as issues of prime concern among
stakeholders in the Materiality assessment upon
which this report is based. The assurance statement
is found on aircanada.com>About Air Canada>
Corporate Sustainability Reports> 2014 Corporate
Sustainability Report.

PROGRESS ON 2014 GOALS

• Establish a senior management standing committee responsible for sustainability activities and reporting ACHIEVED
• Maintain the company’s domestic registered pension plans in a surplus position ACHIEVED
• Continue developing, implementing, improving and monitoring Air Canada’s compliance programs ONGOING

GOALS FOR 2015

• To keep investors and other stakeholders informed, conduct an Investor Day in 2015
• Continue developing, implementing, improving and monitoring Air Canada’s compliance programs and culture
• Adopt a corporate Sustainability Mission Statement

CITIZENS OF THE WORLD 2014 12

 RESULTS OF STAKEHOLDER ANALYSIS
CONDUCTED IN 2014
AIR CANADA’S MATERIALITY MATRIX

High Some disclosure In-depth disclosure

Safety 02

Customer experience 14

Regulatory compliance 15

Ethical business practices and policies

16 13 Customer engagement
Fleet management 8
Equal opportunity 06b 4 Labour relations and employee engagement
7a 5 Employee health and wellness
Energy consumption
IMPORTANCE TO STAKEHOLDERS

Waste 3 Employee training & development

management 9a GHG emissions 7b

Economic performanceof Air Canada 11

9b Water management 12a Community involvement
Sustainable
1 procurement
10 Noise and practices 12b Socio-economic impact
air emissions 17 Transparency and Disclosure
Diversity 06a
18 Sustainable governance

No disclosure
Low High
IMPORTANCE TO AIR CANADA’S BUSINESS

• Safety • Customer • Governance • Economic • Employee • Environment • Supply Chain

• Importance to Air Canada’s business: evaluated through internal interviews and surveys
• Importance to stakeholders: evaluated from surveys of Air Canada customers, employees and suppliers
• Level of disclosure: all Air Canada public disclosures are considered (CS report, Annual report, AIF, website, etc.)
• Topics are ranked by decreasing materiality score

CITIZENS OF THE WORLD 2014 13

SAFETY FIRST
AND
LAST

CITIZENS OF THE WORLD 2014 14

Safety is the paramount value
of Air Canada. At all levels and
throughout the company, safety
is the primary consideration in
decision-making and for all
employees an approach of “safety
first and last” governs all activities.
Safety is an ethical and operational
imperative for everyone at
Air Canada.
Outside the organization too, safety is the chief INJURIES REDUCED
concern of stakeholders. It ranked as the single most The emphasis on safety also makes Air Canada a
important issue identified in the materiality safe place to work. In 2014, Lost Time Injuries
assessment that is the basis of this report. declined 11.4 per cent from the previous year, the
Finally, safety goes to the heart of sustainability for fourth straight year of decline, and total injuries
an airline. It is an essential attribute, as a carrier’s were down 10 per cent from a year ago.
success or failure directly depends upon establishing The airline’s safety record was recognized with a
and maintaining a reputation for operating safely. In prestigious national award from Canadian
an industry that is empirically the safest mode of Occupational Safety magazine, which gave
transport, Air Canada ranks among the world’s safest Air Canada a gold award for its achievements in
carriers. In 2014, Air Canada mainline and Air Canada workplace health and safety at its annual Canada’s
rouge® both successfully completed their biannual Safest Employer Awards for 2014 in the
IATA Operational Safety Audit (IOSA) with results transportation category. Among other things,
that placed the airline in the top two per cent in the eligibility for the award requires that in the
global industry for safety. previous five years a company has neither fatalities
nor serious injuries, and is free of charges under
health and safety laws.

CITIZENS OF THE WORLD 2014 15

SAFETY MANAGEMENT
SYSTEM (SMS)
The management of safety is a
critical responsibility at Air Canada
and one which impacts every
decision the Airline makes. Given
this focus and importance,
Air Canada has established the
appropriate structure, processes
and resources to ensure all aspects
of safety and safety stewardship
are completed in a proper, efficient
and proactive manner. To properly GOLD WINNER
guide its safety work, Air Canada’s
SMS serves as a framework within CORPORATE SAFETY STRUCTURE
which systematic and
Within the Corporate Safety, Environment and
comprehensive processes and Quality (CSEQ) branch three separate groups are
procedures for managing risk are jointly responsible for safety and support a broad
developed, applied and evaluated. range of operational requirements. The first of these
It also creates a common support is Safety Services and Initiatives, whose purpose is to
structure for all operational ensure employee safety programs are implemented
groups, with clear elements and and kept current. Among other things, it monitors
compliance with the Canada Labour Code and
concise direction, so that they can other applicable regulations, and tracks employee
perform their safety management safety-related incidents.
functions effectively.
Safety Services also provides primary and important
Air Canada’s President and Chief Executive support for a series of health and safety committees.
Officer is the designated accountable These joint management/employee groups meet
executive for Air Canada’s SMS with regularly to discuss relevant workplace issues, safety
Air Canada’s Senior Director, Corporate Safety, concerns and work practices in an effort to find
Environment and Quality, responsible for common understanding and appropriate corrective
day-to-day administration and corporate actions to operational concerns.
oversight of SMS policies and procedures.
Finally, the Safety Services group also manages
An integrated safety management process
the Web-OHS software tool. This is an online
ensures an appropriate flow of safety
repository for health and safety information which is
information reaches all levels throughout the
accessible to all committees. As it is able to collect
company and the Air Canada corporate safety
and process all OHS-related events, it reduces
board, chaired by the chief executive, meets
duplication and encourages collaboration among
quarterly to oversee and guide the safety
different employee groups as well as simplifying file
program. Achieving safety targets is one
management and formal reporting to Government
criterion in determining annual remuneration
agencies as appropriate.
for senior executives.

CITIZENS OF THE WORLD 2014 16

OPERATING ROOM MEETS FLIGHT DECK
Few human endeavours demand precision more than flying and
surgery. And the similarities do not end there, as each has achieved a
high level of safety and sophistication through a willingness to learn
from experience. It was natural then that Air Canada reached out to a
Canadian surgeon seeking to collect operating room data the same
way airlines capture flight data to identify and mitigate risk.
Air Canada has established a Flight Data Analysis Program that
monitors thousands of aviation parameters at levels of fidelity that
yield incredible amounts of information. But obtaining the data is the
easy part; the real issue is using the information. So Air Canada has
developed specific practices and policies to identify errors and
follow-up with crews, and it shared this expertise with the medical
team.
The result was a completely wired operating theatre with three
microphones and three cameras. Two of the cameras film the
operating room and a third internal camera records inside the patient’s
body while the surgeon and his team perform minimally invasive
surgeries.
The recorded video and audio information is logged automatically by a data recorder similar to an aircraft’s black boxes. The data is then
analyzed by a team looking at surgical techniques, communication among the operating room doctors, and how they work together, as
well as any hazards that may exist in the operating room. Based on this, improved procedures can be devised.

Black Box

The second group is Data Management and Research. through detailed monitoring of corporate policies
Employing an integrated team of experts recruited and day-to-day practices, conducting internal, and
from the Operational Branches, the Safety Managers external audits, serving on international oversight
collect and manage information related to safety, Committees including IATA, managing formal audit
through the use of the Safety Information assessments for the Corporation as conducted by
Management System (SIMS). This group, supported Transport Canada, foreign regulators and IOSA, and
by its Investigation and Flight Data Monitoring staff, developing and managing corrective action plans to
also catalogues trends in incidents, reports on safety ensure policy compliance. Perhaps as important, this
of flight, conducts flight analysis and flight group is a key part of the CSEQ structure that
recreations, develops comprehensive statistical data cooperatively, routinely and systemically monitors,
for senior management and identifies trends, threats, reviews, challenges and verifies the company’s safety
risk and hazards facing the Operation. The policies, processes, procedures and actions in order
Investigation Staff lead all formal investigations and to deliver a safe and consistent operation across the
conduct industry benchmarking, participate in airline.
International aviation forums and provide detailed
quality analysis on the SIMS tool as well as the safety INFORMATION SHARING
process itself. Shared understandings through ease of
communication are essential to safety. A key means
The third element of CSEQ is Corporate Quality
by which information is shared is through the SIMS, a
Services. This team provides critical oversight for all
software tool which fully supports the company’s
operations and through its work, ensures awareness
centrally-managed, non-punitive safety reporting
of and effective management for risk across the
system designed to facilitate timely sharing of
organization. This is specifically accomplished
information.

CITIZENS OF THE WORLD 2014 17

 19,985
APPROVED REPORTS THROUGH THE
SAFETY INFORMATION MANAGEMENT
SYSTEM IN 2014

In 2014, there were 19,985 reports approved A key output to the corporate Safety Board is the
through the SIMS, an increase of 6.7 per cent from Safety Risk Profile (SRP). This report highlights the top
the 18,731 reports approved in 2013. Although it safety risks the company faces and provides detailed
may seem counter-intuitive, this level of reporting is insight into the specific elements that comprise the
positive because it demonstrates confidence the overall safety risk. The data are both general in
employees have that they can openly, and without nature so it can address company policies but also
personal risk, report their observations, concerns and detailed to allow specific areas of the company to
hazards to the company. Further, it creates focus on challenges within their own operation. The
opportunities to improve operational procedures by SRP covers an extensive breadth of issues, ranging
analyzing the information gathered and addressing from cockpit distractions, aircraft maintenance
undesired outcomes. events, aircraft damage, passenger issues and
non-compliance with Standard Operating Procedures
Finally, it underscores a strong and developing safety
(SOPs) to delays, performance pressures and security
and safety reporting culture that is critical to
events.
understanding the risks and hazards an organization
faces. While safety reports generally address specific As important, the SRP is developed from an
issues, the larger body of data allows the company to assessment of all risks, hazards and occurrence
data mine for threats, hazards and unseen trends. A reports, as well as from other safety inputs such as
key responsibility for CSEQ is to examine the Quality Audits, Investigation reports, Flight Data
database and identify these risks and hazards for the Analysis, industry and regulatory assessments from
awareness of all employees but specifically for the bodies such as IATA, and reports from partners.
senior executives.

CITIZENS OF THE WORLD 2014 18

KEY SAFETY INITIATIVES
As noted, in 2014 Air Canada update standards to reflect regulatory revisions and
successfully passed its sixth best practices, eliminate audit redundancy, engage
biennial IOSA with “no findings; with accredited audit organizations, and structure
its audit methodology.
three observations.” For its part,
Air Canada rouge® also passed SAFETY PULSE SURVEY
with no findings and seven In 2014 Air Canada conducted its second Safety
observations. This is the airline’s Pulse Survey. One-in-five employees took part in
third “zero finding” safety audit the voluntary survey, which helps gauge the safety
and puts its results in the top two culture, set priorities and goals for 2015, and
improve the Safety Management System. Among
per cent of the industry. The audit
other things, the survey asks employees about
required Air Canada and their level of awareness of safety reporting
Air Canada rouge® to meet more systems, their confidence in using the system,
than 900 standards, including the compatibility of SOPs with their assigned
standardized checklists. work, and their overall view of Air Canada’s
safety culture.
The IOSA program is an internationally recognized
and accepted evaluation system designed to assess Results from the survey were encouraging as
the operational management and control systems 95 per cent said they made safety their personal
of an airline. IATA members must remain IOSA priority while 92 per cent said they would report
registered to maintain their membership. Successful any unsafe activity to a manager. Among other
completion of this biennial audit is also a things, as a result of the findings, in 2015 there will
requirement for all Star Alliance® members. be increased emphasis on awareness campaigns to
further promote SIMS, particularly in terms of
Beyond this, IOSA is another means of continuously electronic filing, and enhanced efforts to publicize
improving the way Air Canada manages safety and SOP changes. As well, senior managers used the
identifies areas for improvement throughout the findings of the survey to educate employees
organization. Other benefits of the IOSA program about safety.
are that it gives the airline an opportunity to

CITIZENS OF THE WORLD 2014 19

 DREAMLINER RISK ASSESSMENT
While customers were only too eager to climb onboard and jet off on
Air Canada’s new Boeing 787 Dreamliner, before this could occur a
tremendous amount of preparatory work was done to ensure the new
aircraft’s safe operation.
For more than a year, the Corporate Safety, Environment and Quality team
and the 787 project team undertook a risk assessment to identify potential
hazards and risks, determine the appropriate risk level for each and
implement mitigating measures for the new fleet.
Issues were grouped into areas such as Cabin Interiors, Flight Operations,
Customer Service (including In-Flight Service, Cabin Safety, and Airports),
Corporate Real Estate and IT. Among the risks considered were cold weather
operations, airport gating, composite material awareness, cabin crew and
pilot training, and lithium batteries. In all, 54 potential hazards were raised
and 75 high level potential risks were identified.
Mitigating actions included training and awareness programs, new Standard
Operating Procedures, and meetings with other Star Alliance® 787 operators.
Company officials also consulted Health and Safety Officers from Human
Resources and Skills Development Canada and Transport Canada.
The end goal was to make the 787 as safe as it is comfortable to fly on.

SAFETY EVENT NOTIFICATION

SAFETY TRAINING
In order to promote better reporting, the Safety Event
notification system was expanded in 2014 to include Safety training programs serve a
incidents on the ground. Corporate Safety, in double purpose in that they
conjunction with operational branches, began rolling
out a new safety notification process intended to
provide employees the skills and
increase the reporting of safety-related incidents, knowledge to perform their work
including both ‘in operation’ and ‘not in operation’ safely and also serve to reinforce
events. This new ‘all hazards’ approach to reporting the safety culture at Air Canada.
safety events leverages existing processes but includes For this reason there is recurrent
enhancements that enable a quick determination of safety training in all areas of the
the severity of an incident.
company and, in 2014, existing
There are two main changes. The first is the reporting programs were strengthened to
of ground events (i.e., not in operation) through branch offer additional capabilities.
safety notification reports. The second entails replacing
letter categorization (i.e., Category F, G, etc.) with a For example, during the year, the Ground and
five-level, colour-coded system to designate the Occupational Accident/Incident Investigation Training
severity of the incident. These range from code “red” course was revamped to be more effective in
for the most serious incidents, including loss of life or capturing accurate information associated with an
an aircraft, to the least serious, “white”, involving incident. The more accurate the information, the
incidents of an abnormal nature that do not have a more likely it is that it will be possible to determine
significant impact on the operation. the root cause of incidents and, consequently,

CITIZENS OF THE WORLD 2014 20

implement more effective corrective actions. Human have been exposed to the virus. In order to prepare
Factors Analysis and Classification System (HFACS) is crews, Air Canada undertook an extensive education
a new program at Air Canada that is now being used campaign and equipped employees with protective
to identify the various human and organizational equipment.
causes of an incident or accident. The program was
Similarly, the Polar Vortex that sent temperatures
rolled out in late 2014 and is being delivered to both
plunging to record lows over an extended period in
Front Line Management and Health and Safety
the winter of 2014 was a serious issue for Air Canada
Committee Members.
employees and resulted in 45 slip or trip accidents
Another program, Pristine Condition™, was directly attributable to the frigid conditions.
introduced in 2013 but expanded in 2014. This Air Canada repeatedly issued guidelines, tips and
program aims to reduce injuries, particularly from special equipment for outdoor workers in order that
lifting, by employing Olympic-style weight lifting they could work safely. The company also worked
techniques. While it reduced injuries 22 per cent, this with airports on initiatives to alleviate conditions, for
fell short of the 30 per cent target set for 2014 with example arranging for warming stations on the ramp
the shortfall attributable to the fact the program was in its major Toronto hub.
not introduced as extensively as projected. It will be
further expanded in 2015.

WORKPLACE MEASURES
An important initiative from prior years that was
continued in 2014 was the installation of Automated
External Defibrillators (AEDs). This is now a relatively
mature program at Air Canada, having run for more
than three years, and in 2014 eight new AED stations
were commissioned. The AED program reflects
Air Canada’s commitment to safety across its
workplaces, from the local office to our newest jets.
Aside from AEDs, Air Canada is also examining
additional employee safety initiatives to improve the
quality of the workplace. A new $5 million call
centre, which opened in the Montreal headquarters
during the year, is an example in that it incorporates
a variety of ergonomic features to promote well-
being and productivity, including sound absorption,
controlled lighting, and ergonomic work stations, as
well as comfortable common areas for breaks and
rest.
Air Canada is also extremely proactive in introducing
ad hoc safety programs in the face of emerging or
transitory issues. In 2014, one such initiative was the
company’s response to the Ebola virus outbreak.
Although Air Canada itself does not operate to any
areas that were affected by the outbreak of this
deadly disease, there were risks that certain
passengers connecting onto Air Canada flights may

CITIZENS OF THE WORLD 2014 21

CARGO SAFETY
CHAMPIONS
With safety as its bedrock value and an integral part of
the airline’s identity, in 2014 Air Canada Cargo launched
Cargo Safety Champions, a new program in conjunction
with NAOSH week.
The program’s goal is to recognize Cargo employees for
contributions that make a difference to the health and
safety of their workplace, their fellow colleagues and
customers. It also raises awareness among employees
about safety and safe practices in the workplace.
The Cargo management team were asked to submit Trevor Howard – Manager Cargo Safety & Dangerous Goods Standards
candidates who met established criteria for being true Etienne Richer – Cargo Safety Programs Manager
safety champions, including that they: Craig Winter – Station Attendant
Brian French – Warehouseman
• Have a focus on safety
• Provide positive feedback about working safely And recognize others for safety improvement efforts
• Continually educate themselves about safety procedures and the risks in any aspect of their work
• Promote problem-solving during safety observations and meetings
• Ask for suggestions on how to improve their own safety performance
Managers were also requested to list achievements and contributions and how they were accomplished, and to describe how
the candidate’s impact on health and safety management extends beyond their immediate responsibilities.
The contest resulted in 15 nominations within the Air Canada Cargo network, an impressive number for this new initiative.
After internal review, which included conversations with senior management and local management, two winners were chosen
to be the Cargo Safety Champions.

EMPLOYEE INVOLVEMENT as explain Air Canada’s safety

programs and educate employees
Reflecting the belief that simply about how to access them and
talking about safety is one of the report concerns.
most effective safety precautions, In order to further drive awareness and make the
the company made extensive safety system accessible, Air Canada also launched a
efforts to communicate its safety new CSEQ web page available through the employee
goals and raise awareness during intranet site. The page offers information to all
the year. As noted, the company employees concerning Air Canada’s safety and
reporting policies, explains how the safety system
undertook a major Safety Pulse
works, and discusses the protections offered to
Survey in 2014 and one result was employees who submit safety reports. There is
that the Corporate Safety Team information about safety occurrences, trends and
used the findings as the basis for hazards, corporate safety priorities, industry
an extensive, cross-country series information, as well as guidance on how to use the
of safety town hall meetings SIMS, including how to find feedback on safety
through the year. These events reports.
were well-attended and gave the
Safety Team an opportunity to
discuss the survey results as well

CITIZENS OF THE WORLD 2014 22

NAOSH
Finally, as part of its efforts to reinforce safety,
Air Canada also encourages its employees to take
part in national awareness campaigns. For this
reason, it actively participates in the North American
Occupational Safety and Health week each May.
NAOSH encourages employers, employees, the
general public and the airline’s partners to focus on
preventing injury and illness whether in the
workplace, at home or in the community. To mark
the week, Air Canada introduced an enhanced
smoke-free workplace policy and held events such as
a ceremonial flag raising at its headquarters and a
safety video competition to encourage employee
participation. Additionally, for the first time ever, JE TRAVAILLE EN TOUTE SÉCURITÉ POUR…
Air Canada took part in the Day of Mourning, a I WORK SAFELY FOR/TO…
national event in April to commemorate workers ......................................................................................................................................................................................................
killed on the job. ......................................................................................................................................................................................................

......................................................................................................................................................................................................

......................................................................................................................................................................................................

......................................................................................................................................................................................................

PROGRESS ON 2014 GOALS

• Finalize Transport Canada SMS corrective action plan ACHIEVED
• Complete IOSA audit – aim for 0 findings ACHIEVED
• Reduce Lost Time Injuries by 17 per cent NOT ACHIEVED
• Achieve a reduction in costs and days lost ACHIEVED
• Develop safety procedures for 787 aircraft ACHIEVED

GOALS FOR 2015

• Successful completion of the Transport Canada program validation inspection (PVI)
• Implement new safety strategies that address hazards and system deficiencies to
reduce incidents, and injuries
• Enhance safety risk management associated with new international routes,
and new initiatives
• Reduce Lost Time Injuries by eight per cent
CITIZENS OF THE WORLD 2014 23
REDUCING OUR
ENVIRONMENTAL
FOOTPRINT

CITIZENS OF THE WORLD 2014 24

Although sustainability entails SAVING FUEL, SAVING MONEY
modifying and managing But whereas for many industries meeting
behaviours on many levels, it is environmental targets can be operationally and
most closely associated with an financially onerous, for airlines there is a strong
positive correlation between reducing fuel burn
organization’s activities with
and emissions and operating costs. Fuel is the
respect to the environment. single largest expense for an airline such as
Certainly for Air Canada’s Air Canada and the company spent approximately
stakeholders, environmental $3.7 billion on fuel in 2014. Therefore any savings
performance is a key concern. on fuel burn (and its associated emissions)
Energy consumption and strengthens the company’s economic
emissions rank highly in the performance and spending on new equipment
and technology to achieve these ends is generally
materiality assessment upon
regarded as a sound investment. Even small
which this report is based, as do changes can have a significant benefit as
concerns about waste removing only one kilogram of weight fleet-wide
management and sustainable translates into a savings of 24,500 litres of fuel,
procurement practices. US$19,000 in lower fuel costs, and 63
fewer tonnes of GHG emissions released over the
In the airline industry, particular attention is paid to course of a year.
greenhouse gases (GHGs) that contribute to climate
change. While it is currently estimated that the Air Canada therefore has a triple incentive to
global aviation industry accounts for approximately continually improve its environmental
two per cent of global carbon emissions, that performance. It is the right thing to do for the
amount is projected to reach five per cent by 2050 good of the planet. The company’s stakeholders
based on current trends. This obliges the industry to have expectations it will behave responsibly in
improve its environmental performance. this regard. And, it is good for business and the
long-term sustainability of the company.

CITIZENS OF THE WORLD 2014 25

ENVIRONMENTAL
MANAGEMENT
Air Canada is determined to
mitigate its environmental impact
and established an Environmental
Management System based on ISO
14001 – one of the first airlines in
North America to do so – to
prescribe a systematic approach for
monitoring, planning, implementing
and continually improving its
environmental performance. In
2014 a new cross-functional Fuel,
Energy and Emissions Reduction
Program was established to reduce
the airline’s “gate-to-gate” fuel and
energy consumption and emissions. GHG TARGETS
It reports to the Executive Vice Air Canada has adopted the ambitious collective
President and Chief Operating International Air Transport Association (IATA)
Officer, thereby ensuring reduction targets for GHGs that include:
environmental considerations are • Improving fuel efficiency by an average of 1.5 per
factored into decision-making. cent per year from 2009 to 2020;
The Environmental Affairs department also • Capping aviation CO2 emissions from 2020, or
provides quarterly reports to the Audit carbon-neutral growth;
Committee of the Board of Directors and to the
Corporate Environment Board, comprising • And reducing CO2 emissions by 50 per cent by
senior levels of management. 2050 relative to 2005 levels.

Finally, the corporation’s Code of Conduct1, Additionally, in 2005, as a then-member of the

which managers are required to review and Air Transport Association of Canada, Air Canada
acknowledge each year, contains a specific supported the association’s agreement with
provision outlining the company’s commitment Transport Canada for the world’s first voluntary
to comply with all applicable environmental laws. agreement to reduce GHG emissions from aviation; a
All employees are enjoined to conserve resources target that was exceeded several years ahead of
and reduce waste and emissions through schedule. Subsequently, Air Canada and the country’s
recycling and energy conservation measures. three other largest carriers formed a new industry
The Code further states that employees have a association, the National Airlines Council of Canada
responsibility to promptly report any known or (NACC), which in 2012 signed Canada’s Action Plan to
suspected violations of environmental laws or Reduce GHG Emissions from Aviation with the Federal
any events that may result in a discharge or Government and other key aviation stakeholders.
emission of hazardous materials. The Code also This partnership sets an ambitious goal to reduce
asks that employees remain alert to the storage, GHG emissions by improving fuel efficiency by an
disposal and transportation of waste, and average rate of two per cent annually until 2020,
handling of toxic materials and emissions measured against a 2005 baseline. This target is
into the land, water or air. subject to a review in 2015.

1 Air Canada Corporate Policy and Guidelines on Business Conduct, August 5, 2014, page 19 CITIZENS OF THE WORLD 2014 26
Air Canada is committed to these goals and has TOTAL DIRECT AND INDIRECT GREENHOUSE GAS (GHG)
demonstrated continual progress in terms of its EMISSIONS BY WEIGHT (TONNES CO2e)
SCOPE 1 DIRECT GHG EMISSIONS
environmental performance. Between 1990 and 2011 9,023,788
2014 Air Canada improved fleet fuel efficiency by 2012 9,123,918
2013 9,013,680
37 per cent and in 2014 alone its fuel efficiency 2014 9,462,587
initiatives are estimated to have saved more than SCOPE 2 INDIRECT GHG EMISSIONS

11,000 tonnes of fuel or 35,229 tonnes of CO2e 2011 11,060

2012 9,922
(equivalent). 2013 10,491
2014 8,242
SCOPE 3 OTHER INDIRECT GHG EMISSIONS ( Including Jazz and Sky Regional)
2011 1,084,445
2012 1,162,654
2013 *1,256,522

2014 *1,383,173

* Includes Jazz ground vehicules

For greater detail and context see the GRI information can be found on aircanada.com>About
Air Canada>Corporate Sustainability Reports>2014 Corporate Sustainability Report>2014 GRI

DE-ICING ON THE CAKE

The build-up of ice on wings and critical flight surfaces is an conditions, including the coldest. In Calgary, that means the
ever-present risk for carriers like Air Canada that operate in tanks are blended for -34°c to -39° Celsius. That is what we
the cold. And few places are as cold as Calgary, making it an would use all winter, even on days that only go down to -5,”
ideal place to try new de-icing technology. said Klaus Goersch, Executive Vice-President and Chief
Operating Officer.
The airline spent $6.5 million to acquire eight state-of-the-art
deicing trucks for the airport that bring substantial “By operating deicing trucks with the option to blend on
environmental benefits. Instead of using de-icing fluid stored board so when it is only -5, we can use less glycol than when
in tanks at high concentrations to allow aircraft to be de-iced it is -35. This technology alone is expected to generate
even in the worst weather, the eight new trucks have the significant savings on glycol this year, which has a benefit to
built-in ability to “blend onboard” custom fluid of varying the environment and saves us money.”
concentrations that can be adapted to existing conditions at
the airport. Taking the process a step further, Air Canada has also
supported recovery companies that are exploring methods to
“Currently in Calgary and most of our stations, deicing fluid is capture and recycle used glycol.
blended in tanks at the start of the winter season. The tanks
maintain a concentration that allows us to de-ice in all

CITIZENS OF THE WORLD 2014 27

 AIR CANADA FEEDS
PANDA-MONIUM
With panda bears being on the endangered species list, any
opportunity to increase their number is eagerly sought and
readily seized upon by zoos around the world.
So when Er Shun, a young female panda at the Toronto Zoo,
went into heat for the first time in the spring of 2014, it
prompted an international scramble in which Air Canada
played a willing role.
The window for conception for pandas is about 24-72 hours
and only happens once a year. Da Mao, her male panda
companion at the zoo was too young to have any romantic
inclinations and so to give Er Shun her first chance of
motherhood, panda donor sperm was required.
An entire Air Canada team was enlisted to support the
Canadian Giant Panda Conservation breeding program that
aims to preserve this endangered species. Donor sperm was
located in Beijing and the airline’s station management in the
Chinese capital worked with cargo experts and System
Operations Control to ensure that the “special package”
travelled to Toronto well within the urgent timeframe.
Unfortunately, despite the airline’s best efforts, Er Shun did
not conceive this time around, but Air Canada stands ready
should its assistance be required again.

FOUR PILLARS TO CURB aircraft are 75 per cent quieter than those
manufactured 50 years ago, levels of carbon
GHG EMISSIONS monoxide have come down by 50 per cent and
unburned hydrocarbons and smoke by around
To reach emission reduction 90 per cent1.
targets, Air Canada has adopted Air Canada has kept pace with these developments
the aviation industry’s four pillar with an ongoing fleet renewal program that took a
approach. The strategy entails the major step forward in 2014 with the induction of the
use of technology, operations, Boeing 787 Dreamliner into its fleet. The aircraft is
expected to be 20 per cent more fuel efficient than
infrastructure and economic
the Boeing 767-300 aircraft it is replacing. Air Canada
instruments. In 2014, significant took delivery of six of a planned firm order of
progress was made in each of 37 Boeing 787 Dreamliners in 2014, with deliveries
these areas. running until 2019. These aircraft represent a
significant investment on the part of the company.
As an indicative measure, the 787-8 has a list price of
TECHNOLOGY US$218 million and the 787-9 version carries a list
price of US$257 million.
The single most important factor in reducing GHG
emissions has been the continuous improvement in Preparations are also underway for a new narrow-
aircraft and aircraft engine efficiency. According to body aircraft the company has ordered. Beginning in
IATA, since the 1960s fuel efficiency has improved by 2017, Air Canada will start taking delivery of the
some 70 per cent per passenger kilometre, today’s Boeing 737 Max, for which it has a firm order of

1 http://www.iata.org/whatwedo/environment/Pages/index.aspx
CITIZENS OF THE WORLD 2014 28
61 aircraft in a combination of the 737-8 and 737-9 Once complete, these new aircraft deliveries are
variants. These aircraft will replace Air Canada’s expected to give Air Canada one of the youngest,
current fleet of Airbus narrow-body aircraft that first most fuel efficient fleets in the world. In the
entered the fleet in 1990. The 737 Max will feature meantime, Air Canada is also acting to improve the
the latest technology, CFM International LEAP efficiency of existing aircraft by equipping its current
engines and, according to the manufacturer, these Boeing 767-300 aircraft flying for Air Canada rouge®
aircraft will yield a 14 per cent fuel use improvement with blended winglets that reduce drag. In 2014,
over today’s most fuel-efficient, single-aisle aircraft. eight 767s were modified and it is estimated that
The Max-8 and Max-9 have a list price of yearly carbon dioxide emissions will be curbed by
US$106 million and US$113 million respectively, approximately 2,800 tonnes of CO2e for every
evidence of a further significant investment in retrofitted aircraft.
technology by Air Canada.

CITIZENS OF THE WORLD 2014 29

 EMPLOYEE
RECYCLING
DRIVES
As a company, Air Canada is committed to reducing and
recycling waste from its operations, but for employees the
effort does not stop there. In 2014, employees participated
in two recycling drives, one to collect old uniforms and
another for used electronics.
“It was an excellent opportunity for our employees to
participate in a local act to protect our environment,” said
Penny Thompson, Manager, Environmental Sustainability,
speaking after one of two uniform drives held in Toronto
and Montreal.
The uniform and used clothing drive took place at the
airports in Montreal and Toronto in conjunction with
Environment Week and yielded 3,250 pounds of used textiles – enough to fill approximately 50 large garbage bags. Uniforms
were safely and sustainably disposed of by being shredded and re-used. This saved significant amounts of water and energy as
both resources are required for producing textiles from raw materials. Moreover, a donation was made to the Air Canada
Foundation for each bag collected.
In a similar vein, Toronto airport employees participated in an electronic waste collection event.
Nearly 5,000 pounds of electronic waste were collected, including old computers, hard drives, TV, radios, printers, stereo and
video equipment, monitors, cell phones and keyboards. The materials were then disassembled, shredded into small pieces of
metal, plastic and glass; separated into reusable commodity streams; and were sent to be used to manufacture new materials.
No electronics were resold or sent either to a landfill or to developing countries.

BIOFUELS In 2014, Air Canada also joined the BiofuelNet

Air Canada is also helping to foster the development Canada Aviation Task Force, which was formed that
of sustainable aviation biofuel in Canada. In year. This forum provides an opportunity for ongoing
partnership with Airbus, it commissioned a study collaboration between academic, industry,
through BiofuelNet – a network of Centres of government and other stakeholders on aviation-
Excellence that brings together the Canadian biofuel related biofuel issues.
research community – to identify feedstocks and OPERATIONS
technologies with the most potential for commercial
production of aviation biofuel in this country. In order to maximize the benefit of modern, fuel-
efficient aircraft, it is necessary that they be operated
Following completion, Air Canada then volunteered in a manner that optimizes their capabilities. To do
the results of the BFN feedstock analysis to a broader this Air Canada continually refines its procedures not
research project funded under Transport Canada’s only in-flight, but also on the ground and in its
Clean Transportation Initiative. The research is being maintenance activities.
undertaken by SkyNRG, Waterfall Group, BioFuelNet
and Novo Energy, with Air Canada playing an For a number of years now Air Canada has used a
advisory role. The research project will assess the variety of approaches to conserve fuel and has been
feasibility of developing an aviation bio-fuel supply expanding their use. In 2014, for example, single
chain in Canada from a technological and economic engine taxiing was implemented more widely across
perspective and include an analysis of the associated the fleet, saving approximately 10,088 tonnes of
environmental and sustainability benefits. The results CO2e during the year. Similarly, a program to coach
of the study are expected in 2015. fuel suppliers in order to limit over-fuelling yielded
1,247 tonnes of CO2e savings in 2014 over the 2013

CITIZENS OF THE WORLD 2014 30

baseline. Also in 2014, the airline expanded efforts to SATELLITE TRACKING
better match the amount of potable water carried Air Canada is collaborating with NavCanada on
with approximate annual savings of 954 tonnes of preliminary work for the Aireon LLC joint venture
CO2e. project. Aireon will employ low-earth level satellites
Another new program to reduce fuel use is Smart to be launched starting in 2015 that will enable air
LOAD, a specialized weight and balance software tool traffic controllers to track aircraft anywhere in the
developed by a third party vendor, Smart4Aviation, world. Air Canada anticipates using the system in
and adapted by Air Canada. It integrates varied 2017 and it will help aircraft fly the most fuel
information to enable a carrier to load cargo onto an efficient route possible using heightened surveillance
aircraft more efficiently which in turn translates into in the North Atlantic and other remote areas
meaningful savings in fuel burn and emissions. currently lacking radar. It will also provide an added
level of safety by extending the reach of aircraft
OPTIMAL ROUTINGS surveillance into remote areas not covered by
In 2014, Air Canada, under an agreement with conventional radar.
Boeing, began testing Direct Routes, a program
designed to enable pilots to save fuel by selecting the
MARKET-BASED MEASURES
most efficient altitudes and routings. Fully The final pillar in the industry’s emission reduction
implemented, this program could save significant strategy is the use of market-based measures.
amounts of fuel on long-haul flights operated by the Air Canada believes that any market-based measure
carrier and result in significant emissions reductions. applied to aviation must be global in scope to
Direct Routes uses real time Air Traffic Control encourage fair competition and avoid the
information to suggest shortcuts via datalink overwhelming administrative challenges that arise
messages to flights over the continental U.S. As an from complying with a patchwork of schemes in
added bonus, this program can reduce flight times to different jurisdictions.
deliver customers to their destinations more quickly. For this reason, Air Canada supports ICAO as the
INFRASTRUCTURE entity to develop a global market-based measure.
Air Canada is participating in the development of this
Properly-designed aviation infrastructure also measure through national and international industry
contributes significantly to emission reductions. associations and partnerships.
Air Canada has long advocated for improvements in
this area and works with partners, such as air traffic
control management system operators, on ongoing
initiatives to make the shortest, most direct routes
available to aircraft.
Air Canada supported NavCanada, Canada’s air
navigation provider, on the Alberta Airspace Redesign
Project. This was undertaken in anticipation of air
traffic management changes around Calgary and
Edmonton arising from a new, extended length
runway that opened in Calgary in June 2014.
Air Canada has also taken part in a project for similar
improvements to the heavily-travelled Windsor-
Toronto-Montreal air corridor. As well, the company
has been in consultation with NavCanada and
community groups on new protocols to reduce noise
in the area of Lester B. Pearson International Airport
in the Toronto region.

CITIZENS OF THE WORLD 2014 31

GROUND OPERATIONS iRAMP
Augmenting these savings has been the adoption of
Although Air Canada’s ground a technology called iRamp, which uses wireless
operations make up a small fraction technology to determine if a vehicle has been idling
too long and remotely shut it down when safe to do
of the company’s overall emissions, so to save unnecessary fuel burn and emissions. It
it is adopting new technologies and also significantly reduces the dwell time of cargo
innovative practices to reduce delivery vehicles on the ramp and expedites
greenhouse gas emissions wherever deliveries for customers by making it easier to
feasible. consolidate delivery and retrieval of shipments from
aircraft to cargo facility. The iRamp program is
ongoing with a further roll out across the fleet
through 2015.
GROUND EQUIPMENT
Alternative energy is being used on the ground to FACILITIES
power airport vehicles such as baggage carts. Since Air Canada also continually reviews the operations of
2009, 850 or 30 per cent of such vehicles in its extensive real estate holdings, both at airports and
Air Canada’s ground fleet have been equipped to be other facilities, to ensure they are operated in an
powered by alternative means, including electricity or energy efficient manner. In 2014, the carrier opened
propane, with a 15 per cent reduction in emissions a new call center in Montreal that incorporated the
compared to conventional fuel. In 2014 the use of latest technology in lighting and HVAC. Other
alternative fuels on ground equipment continued renovations of buildings at the company headquarters
with the testing of an electric conversion kit that also included upgrades to lighting, all of which
uses the latest lithium-ion battery technology. If this promote energy savings.
proves feasible for use in the airport environment,
installing these kits on gas-powered vehicles could
reduce emissions by another 20 per cent.

Towbars
(Aerospecialties B787 tow bar)

CITIZENS OF THE WORLD 2014 32

 company recycling practices. At present, groomers
collect materials from aircraft – such as old issues
of in-flight magazines and soap containers – and
employees in its facilities sort materials such as
paper, cardboard, wood, glass, metal, and plastic,
depending on what is recyclable in a particular
municipality.
The recycling of onboard waste is complicated,
however, by regulation that mandates how waste
potentially containing food or organic material
must be disposed of to avoid the spread of certain
diseases. This can result in complex procedures and
in some cases, recycling bans.
Air Canada is also working at airports to reduce
waste and promote recycling of ethylene glycol,
OTHER GREEN INITIATIVES used as de-icing fluid. Air Canada participated in the
development of glycol mitigation plans at airports
across Canada in order to avoid possible violations of
In addition to efforts to mitigate the federal 100 mg/L glycol standard.
emissions, Air Canada is also active
in a number of other areas to SUPPLY CHAIN
reduce its environmental impact, To help it achieve its environmental goals and
notably with respect to minimizing promote responsible behaviour, Air Canada works
the creation of waste and recycling. with suppliers. Air Canada has more than 5,500
individual suppliers and in 2014 it spent $4.4 billion
In 2014, a committee called Air Canada Goes on Canadian products and suppliers alone, excluding
Paperless was created to identify ways to discourage fuel and labour, and its total supplier spending was
unnecessary use of paper and promote paperless $10.4 billion.
substitutes. Air Canada has already scored notable
Air Canada has developed a Supplier Code of
successes in this area, having been the first airline in
Conduct (SCC) that among other requirements, such
North America to offer electronic boarding passes
as respecting human rights and international labour
in 2007, the use of which has grown exponentially.
standards, also stipulates that companies have due
Moreover, Air Canada Cargo has begun using
regard for the environment. This includes requesting
electronic airway bills or e-AWB for freight
that suppliers have an effective environmental
documents. One e-AWB replaces an eight-copy
management plan in place, that companies work to
form, and represents a potential annual reduction of
reduce their footprint and that they demonstrate and
10 million sheets of paper when fully implemented.
promote environmental stewardship. In 2014, as part
RECYCLING of an effort to increase adoption of the SCC, the
company included the SCC in standard Requests for
Recycling remains a primary area of focus, both
Proposals and contracts. The number of contracts
onboard aircraft and in Air Canada’s offices and
that are governed by the SCC has more than doubled
facilities. In January 2014 internal recycling audits
over the year.
were conducted on domestic flights to calculate the
quantity of recyclables distributed in each waste Despite the size of the supply chain, nearly three-
stream. At present, recycling occurs at eight out of quarters of expenditures go to the top one hundred
nine major Canadian stations that Air Canada flies to, suppliers. Several organizations within Air Canada are
and the audits are intended to improve and expand charged with managing these relationships but

CITIZENS OF THE WORLD 2014 33

Strategic Procurement, whose purview includes fuel of the world’s eight major bear species and the trailer
purchases, accounts for the majority of these for their upcoming film, Beartrek, was promoted on
expenditures. Air Canada endeavours to source Air Canada’s in-flight entertainment system in 2014.
locally wherever commercially feasible. A substantial
As a member of Partners in Project Green – an
representative sampling of Air Canada’s contracts
initiative that helps businesses in the Pearson
indicated that more than 80 per cent are with
Eco-Business Zone advance a shared sustainability
suppliers in the region where the goods or services
agenda – Air Canada participates in collective
are delivered.
environment-related initiatives in and around its
WORKING WITH OTHERS global hub airport. In 2014, it joined the Waste
Management Committee and participated for the
Air Canada works with a number of multi-lateral
first time in the annual People Power Challenge.
organizations on climate change and other
environment issues. Among the groups Air Canada Finally, Air Canada also encourages the travel industry
participates in are the IATA Environment Committee, and customers to become involved in environmental
the NACC environment Sub-Committee, the Airlines initiatives. Air Canada has sponsored the Responsible
for America (A4A) Environment Council and the Travel and Tourism Forum (RTTF) since its inception.
International Noise and Emissions Committee (INEC), The RTTF keeps all sectors of the Canadian travel and
and the Commercial Aviation Alternative Fuel tourism industry updated about relevant sustainability
Initiative (CAAFI). issues. In 2014, the airline donated the grand prize to
the winner of the Leadership Award, presented to a
Air Canada has assisted Wildlife Media since 2012
Canadian travel and tourism organization that has
with transportation for the making of a documentary
demonstrated commitment to socially, economically,
film about the lives and threatened habitats of four

CITIZENS OF THE WORLD 2014 34

and environmentally responsible practices. With RTTF CARBON OFFSETS
partners, Air Canada also agreed to expand the For customers seeking more information on
awards for 2015 and actively contributed to that work. Air Canada’s environmental programs, the company
Air Canada employees are often key drivers of maintains a dedicated environmental page on its
environmental initiatives, both at work and in their website, including an informative section called
communities. Air Canada sponsored a personal leaveless. It provides travel tips and advice on how
electronics waste day, during which employees were customers can make their travels more
encouraged to bring in used electronics for safe environmentally friendly.
disposal and recycling. Employees are also The site also links to Zerofootprint, with whom
encouraged to participate in other environmental Air Canada has partnered to offer customers a
events, such as the annual recognition of Earth Day, carbon offset program whereby they can offset
including this year a tree planting drive, and to take emissions from their flights online by supporting
part in programs such as the Great Canadian carbon sequestering and reduction projects. In 2014,
Shoreline Cleanup. Air Canada held a carbon offset contest for
In 2014, in conjunction with Canadian Environment customers. During the contest, more than 400
Week, Air Canada sponsored a uniform recycling tonnes of offsets were purchased, effectively making
drive at its Toronto and Montreal stations, with the 2,900 Air Canada flights carbon neutral.
Air Canada Foundation benefiting from a company
donation based on the amount of material received.

PROGRESS ON 2014 GOALS

• Advance GHG emission reduction through the four pillar approach IN PROGRESS
• Increase recycling on the ground and in the air IN PROGRESS
• Continue to improve methods for measuring Air Canada’s environmental footprint ACHIEVED
• Complete the sustainable aviation biofuel Canadian feedstock assessment ACHIEVED

GOALS FOR 2015

• Advance GHG emission reductions including the retrofit of winglets on additional
Boeing 767 aircraft and the launch of a new fuel optimization program for our fleet
• Reduce waste generation and increase re-use and recycling with a focus on Cargo
facility at Pearson International Airport through its participation in the People
Power Challenge
• Improve communications to stakeholders by redesigning the Leaveless website
• To support broader environmental sustainability initiatives, work with partners
to expand the scope of the Responsible Travel and Tourism Forum’s annual
Leadership Awards.

CITIZENS OF THE WORLD 2014 35

EMPLOYEES OUR PEOPLE
ARE
OUR GREATEST ASSET

CITIZENS OF THE WORLD 2014 36

Although the airline industry is EMPLOYEE MANAGEMENT
associated with large aircraft,
cavernous terminals and crowds of To manage its employee relationships,
travelers, it remains at its heart a Air Canada has a Vice President
service business driven by personal responsible for Human Resources (HR)
interactions. In fact, the sustainability and a Managing Director of Labour
of a carrier is directly related to how its Relations (LR). The HR branch has nine
customers feel they are treated as main areas – pensions, recruitment,
individuals and in turn how well the engagement and organizational
airline engages, trains and motivates its development, language and diversity,
employees. Stakeholders concur, training, benefits, occupational health,
ranking labour relations and employee disability management and total
engagement highly among the issues rewards.
of greatest importance in the LR is responsible for negotiating, implementing
materiality assessment upon which and monitoring collective agreements and the
this report is based. ongoing management of relations between
the company and its unionized workforce.
Maintaining a positive employee culture is therefore a Air Canada has five unions representing
crucial element of Air Canada’s business strategy. This its employees in Canada and eight unions
requires a significant investment of energy and representing employees based in stations
resources on the part of the company as its outside Canada. In evaluating its management
approximately 28,000 employees1 are located approach, with a goal of fostering positive
throughout Canada and across five continents. relations, Air Canada endeavours to ensure
Moreover, with their schedules, the nature of their collective agreements are consistently
work, and even their cultural backgrounds varying implemented in line with corporate priorities.
greatly, it is incumbent upon Air Canada that it be As well, once implemented, any negotiated
empathetic and put effective support structures in productivity improvements are measured
place. Adding another dimension to the company’s against the initial value attributed to them
employee relationship management is the fact nearly via operational budget exercises.
90 per cent are unionized.

1 Includes employees at Air Canada, Air Canada rouge® and Air Canada Vacations®
CITIZENS OF THE WORLD 2014 37
SUCCESSFUL BARGAINING
During 2014, the company achieved a landmark
agreement which establishes collective agreement
terms for the next 10 years with its 3,000 pilots
represented by the Air Canada Pilots Association. The
new agreement provides greater stability and long-
term cost certainty for Air Canada, creating a
foundation for profitable future growth at both the
mainline carrier and its leisure airline, Air Canada
rouge®. Although the agreement is subject to certain WORKING AT
openers and benchmarks over the 10-year period, its AIR CANADA
duration and the fact it was negotiated more than a Air Canada
year prior to the expiry of the previous pilot contract employees are
indicate the strength of the relationship Air Canada among the best
and its pilots enjoy. compensated in
the Canadian airline industry. All permanent
Subsequent to the pilot agreement, Air Canada
employees are enrolled in a company pension
concluded two other agreements with the
plan, with the majority belonging to defined
International Brotherhood of Teamsters (IBT) for the
benefit plans – which is unique in the sector and
airline’s U.S.-based workforce and UNITE, the union
increasingly rare in Canadian workplaces – and
representing the airline’s U.K.-based employees.1
they are also provided with a full healthcare
In 2015, Air Canada will also enter contract
benefit plan. During 2014, Air Canada
negotiations with two of its largest Canadian unions,
contributed $445 million to its company
UNIFOR representing airport and call centre employees
pension plans.
and the Canadian Union of Public Employees
representing flight attendants. For managers, Air Canada offers an Annual
Incentive Program (AIP) which pays out when
CROSS-BRANCH COOPERATION certain corporate targets are met. Payments are
The HR and LR branches work closely with other calculated based on a combination of individual,
branches within the company including legal, branch and company results with the aim of
commercial, corporate safety and environmental rewarding individual contributions while at the
quality, employee communications and all the same time encouraging teamwork. There are
operational branches. This cross-functional approach other financial incentive plans designed to retain
encourages fair and consistent treatment of all and engage employees discussed further below.
employees and the sharing of best practices among
Throughout the year, Air Canada received a
branches in managing employee relations.
number of awards related to human resources.
Air Canada’s workforce is relatively mature, with an This included for the second year in a row being
average age of 45 years. It consists of 12,362 female the only airline ranked among Canada’s Top 100
and 15,602 male employees2, with almost all classed Employers for 2015, for which Air Canada was
as permanent, full-time. Most are based in Canada chosen from an initial list of 75,000 employers
but they are also found in 28 other countries. across the country. It was chosen one of 30 Top
Moreover, Air Canada prides itself on fostering and Employers in Montreal for 2014. As well,
celebrating diversity within its workforce and there is a Air Canada was named one of Canada’s most
diversity team within the HR branch that in 2014 attractive employers by the recruitment firm
developed and began implementing a new Randstad Canada, whose findings were based
Employment Equity and Diversity Action Plan. on a poll of 9,500 job seekers and workers.

1 Both agreements were ratified in early 2015

2 Includes employees at Air Canada, Air Canada rouge® and Air Canada Vacations® CITIZENS OF THE WORLD 2014 38
FIRST 787 ARRIVES
More than 5,000 employees, family and friends greeted the arrival of Air Canada’s first Boeing 787 Dreamliner.
Cheers and applause filled the air as flight AC7008, touched down in Toronto one sunny May afternoon with more than 100
employees on board, many of whom had won a contest to be on this historic flight. As the aircraft trundled through a water
cannon salute, airport workers paused to wave at, photograph or simply gawk at the gleaming new plane.
Inside a hangar specially decorated for the event, employees who brought their family and friends to share in the occasion
watched the aircraft land on a big screen monitor.
Air Canada is the only Canadian airline to fly the new aircraft which, with its long-range and unsurpassed fuel efficiency, will
play a starring role in the airline’s international expansion strategy. Air Canada has orders for 37 Boeing 787 aircraft.
In order to share the Dream, other employee events that drew thousands more were held in Vancouver, Calgary, Montreal and
Halifax to show off the new aircraft.

CITIZENS OF THE WORLD 2014 39

 WELCOMING NEW ARRIVALS
Onboarding includes Arrivals Connection, a day-long
information and networking session that features
presentations by senior executives. In 2014 Arrivals
Connection was expanded to include managers with
two-to-five years experience with the company. Two
editions of this event were held in 2014 for a total of
240 participants, who reported a 98 per cent
satisfaction rate with the presenters.
To ensure Air Canada’s HR practices are effective and
relevant, in 2014 14 focus groups were held with
employees in order to gather their feedback. More
RECRUITMENT than 300 people from Montreal, Toronto, Vancouver
and Calgary took part in the initiative, which drew
employees from Management and Senior
For any human construct to be Management and a cross-section of union groups. An
successful, it is essential to begin with additional 100 employees responded to the question:
suitable raw materials and for a “What makes you tick at AC?” in the March Horizons
corporation this means it must recruit survey. All the data from the Focus Group was
the most talented people. To some compiled and analyzed by a third party research firm
degree, as the Randstad survey and the findings will be used to guide further
illustrates, Air Canada’s reputation as employee engagement initiatives.
an attractive place to work makes it a
popular destination for job seekers
and it receives 110,000 visits each
month to the employment page of its
website. Historically, there are more
than 100 applicants for each job filled.
Yet, with high demand for top talent in the workplace
generally, Air Canada also recognizes that it must
actively recruit in order to remain competitive.
Moreover, once qualified candidates are identified
and hired, it is necessary to provide them guidance
and equip them with the skills and knowledge they
need to succeed.
For new and recently-hired managers, Air Canada
offers an Onboarding program. It is a resource tool
that guides recruits through the first year and
includes orientation, training programs,
a buddy system to provide support, and the
development and ongoing review of performance
management targets.

CITIZENS OF THE WORLD 2014 40

 More broadly, Air Canada maintains partnerships
with other organizations whose mandate is to
promote diversity and inclusiveness including by
belonging to the Canadian Centre for Diversity &
Inclusion. It is a Canadian organization designed to
help employers effectively address the full picture of
diversity, equity and inclusion within the workplace.
Among its areas of activities, the airline is supportive
of a number of aboriginal organizations. This includes
the Aboriginal Human Resources Council, the Centre
for Aboriginal Human Resource Development Inc.
(CAHRD), the aboriginal job posting website AMIK
and MAMU, an Aboriginal career event. Moreover,
the company supports aboriginal cultural activities
detailed in the Community Section of this report.
Air Canada also employs more than 250 individuals
self-identified as disabled. It works together with
organizations geared to advancing people with
disabilities – such as the Comité d’adaptation de la
main-d’œuvre (CAMO), the Canadian Council on
Rehabilitation and Work (CCRW), the MAB-Mackay
Rehabilitation Centre and the Moelle épinière et
DIVERSITY motricité Québec: (MEMO-Qc).
A key consideration at Air Canada is the promotion Finally, Air Canada provides a positive environment
of gender equality, diversity and inclusiveness. Apart for employees regardless of sexual orientation and is
from doing so because it is appropriate in terms of a major sponsor of Pride events. It has partnered
social norms, workplaces that embrace these values with Pride at Work Canada, which brings together
are more attractive to prospective and current leading Canadian employers
employees and thereby enriched. aiming to fully actualize
To encourage gender balance at all levels of the inclusive workplaces for their
company, in 2014, Air Canada’s Board of Directors lesbian, gay, bisexual and
supported the company signing the Catalyst Accord, trans-identified (LGBT)
an undertaking sponsored by the internationally- employees. During the year,
recognized group, Catalyst, which is a leading non- several networking and social
profit organization whose mission is to expand events for LGBT-identified
opportunities for women in business worldwide. employees and their allies
Under the Accord, Air Canada has committed to were organized in Montreal,
increase the number of women on its board to Toronto, Calgary and
25 per cent by 2017.1 Already, approximately Vancouver under the theme
30 per cent of senior managers, defined as vice- “Inclusion Happens Here.”
president level or higher, are female at Air Canada.
Additionally, Air Canada actively works to recruit
women and create opportunities for engagement
such as the Women in Aviation networking events
with the objective of increasing engagement of
women in career development and leadership roles.

1 As of May 2015, 18 per cent of Air Canada’s 11-member Board of Directors is female. CITIZENS OF THE WORLD 2014 41
NEW REVENUE
MANAGEMENT
TRAINING
One of the most complex aspects of running an
airline is managing revenue in such a way to get
the most revenue from each of the tens of
millions of seats flown each year.
So when Air Canada began preparations to
launch a new Revenue Management system in
2015, it required significant training in advance to get employees comfortable with the new approach.
In essence, rather than try and fill every seat regardless of the fare, the new objective is to fill seats with better quality of
revenue. This is accomplished by looking at the entire network, rather than looking at one segment at a time. This paradigm
shift is a big change for the entire revenue management team: a new philosophy, a new system and new opportunities for
colleagues in Revenue Management to sharpen their analysis skills.
“The change management component of this project is certainly daunting. We’ll be coaching our people through the transition
as both the system and their roles change because this change is certainly the right thing to do,” said Marie-Claude Roy, Senior
Director, Revenue Optimization.
To prepare employees for the cutover, there were “Warm-up Sessions” beginning in the fall of 2014, where the company gave
130 employees from the revenue management group a total of 1,950 hours of training. This was followed by more intensive
“End-User” training where employees got 40 hours of training each or a total of 5,200 hours. To support the training, extensive
documentation also had to be prepared, including more than 3,000 power point slides.
But with expectations the new system could generate $100 million or more in additional revenue per year, the investment in
Air Canada’s people is certainly worth it.

TRAINING In 2014, Air Canada introduced a new Management

Competency Model to support its leadership brand.
It achieved this by standardizing processes impacting
While identifying and recruiting employees, including with respect to recruitment and
individuals capable of being top performance management. Development and
performers is a necessary first succession planning will be linked to this competency
step, in order for them to reach model as well. As part of the rollout, more than 60
their potential and continue as sessions were offered, both in-person and through
high-level contributors it is webinars, to inform and engage senior leaders, front-
line managers and all levels of management.
essential to provide initial and
recurrent training. This is THE ACWay
particularly true in the airline During the year, other management programs were
industry, where training is required also introduced, reflecting Air Canada’s focus on
to reinforce safety and also where developing leadership skills. Change Management
new products, services and training for senior management is intended to
develop capabilities in managing the human side of
technologies are continually
change while a second program, Managing the
being introduced to maintain ACWay, is designed to intersect with front-line
competitiveness. employee customer service training, with a goal to
enhance leadership and improve the customer’s
experience.

CITIZENS OF THE WORLD 2014 42

NUMBER OF EMPLOYEES TRAINED PER YEAR employees, further expanding Air Canada’s linguistic
NON MANAGEMENT TOTAL offerings. In order to promote bilingualism among
2011 18,608
employees, the company has annual Dialogue
Awards for those offering exemplary service in
2012 19,325
French and English.
2013 19,446
CUSTOMER FOCUS
2014 20,480
Many of Air Canada’s training programs are designed
MANAGEMENT AND ADMINISTRATIVE & TECHNICAL SUPPORT TOTAL to enhance customer service. In developing these,
2011 1,827 the company receives vital input from its Customer
Service Council (CSC), which was formalized in 2014.
2012 1,336
Composed of senior managers from a cross-section
2013 1,324 of branches throughout the company, its mandate is
2014 1,610 to review existing policies – with input from
employee focus groups – to make them more
customer-centric and devise new policies, processes
and procedures to improve the customer experience.
Additionally, to assist managers in further developing This is important as customer engagement and
their direct reports, a new online course e-learning customer experience are two issues identified as
Aid, was launched to support year-end performance matters of concern to stakeholders in the materiality
reviews. It is designed for management to deepen its assessment.
understanding of Air Canada’s new competency As a result of the CSC’s activities, a number of
model and to help build confidence in attributing policies have been introduced or amended to better
performance ratings. meet customer expectations. This includes more
There were also a number of new programs for generous baggage allowance for members of the
non-management and front-line employees. After a military, a relaxed policy on name changes to correct
successful type-trial in 2014, the Ovation Program spelling errors and greater allowances for customers
that provided customer service training for flight arriving late for flights due to extraordinary
attendants was rebranded as the Applause Program, circumstances. In total, 56 initiatives that have
and will be delivered to more front-line staff in 2015. customer impact were identified in 2014 and these
The LAT5 Program, first introduced in 2013, was are now under review, including the development of
further expanded in 2014. It is a workshop on the necessary training to implement them
Coaching Skills offered to all ACM Line maintenance successfully.
managers to equip them for their support role in the One major area of focus is On-time Performance
annual performance review of all Licensed Aircraft (OTP), as customers depend upon the airline to
Technicians (LAT). maintain its schedule. OTP increased 17 per cent
There were extensive training programs through all between 2011 and 2014 and several initiatives are
levels of the organization in anticipation of the underway to maintain this positive momentum. The
delivery in May 2014 of a new aircraft type, the company began by developing extensive metrics or
Boeing 787 Dreamliner. These programs will continue “dashboards” to measure performance more
as more 787s arrive, including a larger 787-9 version accurately and isolate areas for improvement. These
of the aircraft in mid-2015. were then followed-up by extensive, cross-country
Town Hall presentations by the Chief Operating
Beyond this, a number of other programs, such as Officer to explain to front-line employees the
language training, continue to be offered by the importance of achieving targets and the new SOPs
company and for the first time in 2014 sign language for doing so.
was added as a new qualification option for

CITIZENS OF THE WORLD 2014 43

ENGAGEMENT AND EMPLOYEE SHAREHOLDERS
To further promote employee ownership,
RETENTION Air Canada offers an Employee Share
Ownership Plan (ESOP). At the end of 2014,
Training programs also serve an there were 3,568 employees enrolled in ESOP,
important ancillary function in holding 2,805,778 shares in total. This is
that they are effective tools for 123 per cent more participants than the
engagement. Through training the previous year, which is primarily due to the
company acknowledges the enhanced features in ESOP that were
introduced in late 2013 under which Air Canada
challenges employees face in their continued to match 33.33 per cent of an
day-to-day work and is seen as employee’s total dollar contribution for their
trying to address these issues, first 12 months of continuous participation. In
making employees feel valued. addition, the company match will increase its
The significance of this cannot contribution to 50 per cent starting with the
be understated as maintaining a 13th month of continuous and active
participation.
workforce once it is assembled and
trained is an essential aspect of Moreover, as of at December 31, 2014,
sustainability. Air Canada employees and their unions held
under various programs in aggregate 23,056,408
For this reason, Air Canada places a heavy emphasis shares or almost eight per cent of total issued
on employee retention. Financial compensation is the and outstanding shares of Air Canada. This
chief means of achieving this and, as mentioned, included 17,647,059 shares held under a trust
Air Canada employees are among the best arrangement in connection with pension
compensated in the Canadian airline industry. In arrangements concluded in 2009.
addition to regular wages, the company maintains a
profit sharing incentive program that for 2014 paid
out a total of $46 million to all employees below the
senior management level – an increase of $15 million
from 2013. These same employees were also
awarded shares in 2011 under an $11 million
Employee Recognition Award that granted each
employee shares that fully vested in 2014.

CITIZENS OF THE WORLD 2014 44

TRAVEL Healthy employees are also more productive,
Air Canada offers employees other privileges, which contributes to the company’s sustainability.
notably space available or discounted airline tickets Recognizing this, Air Canada actively promotes good
for themselves, family and friends. Air Canada’s health, for example by making discounts on health
GoAC program provides employees more travel club memberships available. It also supports
options for confirmed seating. Travel privileges are intramural sports, such as badminton tournaments
also used to acknowledge exceptional events or with the Air Canada Recreational Association. There
circumstances, for example following the severe are also education campaigns where workplace
winter weather brought about by the Polar Vortex health and safety is emphasized through such events
in 2013-2014, each employee was granted as flu shot clinics, NAOSH Week and the promotion
a special high-priority pass for travel with a of other healthful measures such as eating well and
family member. hand-washing.
As noted, Air Canada was named one of Canada’s
PROMOTING WELL-BEING safest employers in 2014, but for those who are
Beyond financial compensation and travel injured or need assistance the company has a
privileges, Air Canada also has other programs in disability management system. Air Canada monitors
place to promote the well-being of employees, the incidence and duration of disability claims (both
especially with respect to their health. The airline occupational and non-occupational) to help ensure
offers tools, services and benefits to promote that the appropriate safety and prevention measures
health and safety and maintains a number of are in place. Air Canada continually refines its health
programs, including a confidential counselling and wellness strategy to employ best practices to
service, which in 2014 was expanded to cover promote the early and safe return to work.
those working at foreign stations. It is important
for employees to know that their employer has
regard for their personal well-being, which also
includes privacy and as a result the company
instituted a new Personal Health Information
policy in 2014 to guarantee the confidentiality of
health information.

CITIZENS OF THE WORLD 2014 45

 YAMMER
While scolding bosses will tell their employees to “quit
yammering and get to work” Air Canada has found
productivity can actually be increased by making it easier for
employees to kibitz.
That’s why in 2014 the airline expanded a tool called Yammer
that allows employees to exchange with one another,
collaborate on problems and share ideas and best practices.
Initially available to flight attendants, Yammer was integrated
for all employees during the year as part of the new employee
portal. Since then the user group has doubled, with slightly
over half of employees enrolled.
“The pool of collective knowledge of employees is virtually
bottomless and Yammer gives us all way to tap into that
reservoir. By making it easy for people to ask questions and
provide answers or suggestions on virtually any topic, we
have created a tremendous resource that is easily accessible
to everyone,” said Susan Kingsley, Director of Employee
Communications.
The use of Yammer has evolved from a simple question and
answer format to usage by Groups of employees to work on
projects, problem solve, share files and even post photos of
company events such as Skytrax Day and make available
commendations to employees.

EMPLOYEE providing timely and consistent

messaging and collecting employee
COMMUNICATIONS feedback. One example of the
company acting on employee
Another crucial element of
feedback was the decision in 2014 to
engagement is communicating with
bring in-house certain HR functions
employees. People expect to be
that had earlier been outsourced.
informed about events that affect
them. Moreover, they feel valued if The company speaks to employees through a
they are encouraged to provide input number of channels, including an intranet site
with some assurance their views will called the ACaeronet portal, which was completely
revamped to make it more user-friendly in 2014,
be taken into consideration. For this The Daily employee bulletin and a monthly magazine
reason, Air Canada devotes called Horizons. These are supplemented by
considerable resources to employee messages and letters from the President and Chief
communications, which resides within Executive Officer, the President, Passenger Airlines,
the Corporate Communications as well as a weekly operational overview sent to all
branch, and serves the dual role of employees from the Chief Operating Officer.

CITIZENS OF THE WORLD 2014 46

Formal town hall held in Montreal with senior executives (from left to right): Arielle Meloul-Wechsler, Vice President, Human Resources;
Klaus Goersch, Executive Vice President & Chief Operating Officer; Calin Rovinescu, President and Chief Executive Officer;
Mike Rousseau, Executive Vice President & Chief Financial Officer; and Benjamin M. Smith, President, Passenger Airlines

TOWN HALLS voluntary and anonymous participation in an

In addition to these vehicles, there are quarterly in-depth telephone interview. Findings from the
management conference calls and meetings with survey are being used to track the company’s
key union officials to discuss financial results. During progress and determine steps to ensure Air Canada
2014, a number of formal town hall meetings were remains an employer of choice.
convened across the country where senior executives Employees can share their ideas through an online
attended to explain strategy and take questions suggestion box called Creative Juices, and
directly from employees and there were also focus submissions to this forum have resulted in a number
groups, such as those conducted by the Customer of product innovations and policy changes. People
Service Council (CSC). Within each branch, senior are also encouraged to share best practices with one
managers hold periodic meetings with employees, another through such vehicles as Yammer, an online
for example the President and CEO of Air Canada community originally available to flight attendants
Vacations held 18 breakfast seminars with employees but expanded in 2014 to include all employees,
during 2014. including with the introduction of mobile yammer app.
In terms of listening to employees, Another networking tool available within Air Canada
Air Canada undertook a major survey of employee Maintenance is i2I (Ideas to Implement) which solicits
attitudes in 2014 using a third party, independent ideas from employees to improve maintenance
market-research firm, The Strategic Counsel. The procedures. In one instance, a group devised a fan
company performed similar telephone surveys for blade repair procedure estimated to save the
Air Canada in 2007, 2008 and 2010, giving it a company nearly $3 million a year.
substantial baseline of information to detect and
measure trends. Approximately 1,500 randomly
selected employees representing all groups across the
company were called at home and asked for their

CITIZENS OF THE WORLD 2014 47

AWARD OF EXCELLENCE responsibilities. Employees appreciate seeing their
Recognizing and celebrating employee achievements colleagues recognized for their daily contributions
is another key element of engagement. Air Canada’s and it also heightens awareness among customers
premier recognition program is the Excellence about how the airline functions and the efforts of
Awards, which in 2014 honoured 52 employees with those who work at Air Canada.
the Award of Excellence at the 27th edition of the FAMILY EVENTS
program. Recipients are chosen by their peers for
demonstrating leadership, showing commitment and In 2014, Air Canada hosted a series of Family Day
promoting the company’s values. Those selected are gatherings in Toronto, and in conjunction with
featured internally in Horizons and on the ACaeronet Dreamliner showcase events, in Vancouver, Calgary
site, and publicly in the Air Canada enRoute® and Montreal. Together they attracted thousands of
magazine. They are also honoured during an event at employees and their family members and also raised
a Caribbean getaway. more than $10,000 for the Air Canada Foundation.
Air Canada rouge® also celebrated the anniversary of
one year of operations with employee events and a
memento for each employee of the Air Canada
Leisure Group.
Employee accomplishments are marked throughout
the year, with regular events to celebrate milestone The most anticipated and celebrated event of 2014,
service anniversaries, volunteer projects and awards, however, was the arrival of the first Boeing 787
and contests won by employee groups. Each month, Dreamliner into Air Canada’s fleet. More than 5,000
Air Canada enRoute® magazine’s “Behind the Scenes” employees, family and friends greeted Air Canada’s
feature focuses on particular employees and their first Boeing 787 Dreamliner in Toronto.

PROGRESS ON 2014 GOALS

• Undertake an employee satisfaction survey ACHIEVED
• Hold focus groups around customer service ACHIEVED
• Launch leading edge employee Portal ACHIEVED
• Maintain focus on communication and teaming around customer service
(notably through expansion of Yammer company-wide) ACHIEVED
• Increase emphasis on diversity ACHIEVED

GOALS FOR 2015

• Increase front-line training by at least 50 per cent
• Increase Roadshows to frontline to better inform
• Negotiate new CUPE and UNIFOR contracts
• Launch a Leadership Development program called Leading the ACWAY, in line with
our Talent Blueprint for Succession and Emerging Leaders Initiative

CITIZENS OF THE WORLD 2014 48

 INVESTING
FOR
A HEALTHIER COMMUNITY

CITIZENS OF THE WORLD 2014 49

Successful companies contribute to Air Canada’s commitment to communities predates
their communities. They do so out of the advent of sustainability as a formalized concept,
reaching back to the airline’s founding 77 years ago.
a genuine altruistic desire and a sense Today, Air Canada’s community involvement ranges
of obligation; to help ensure their from programs devoted to basic health and well-
employees and other stakeholders being to those intended to support cultural
have healthy places to live; and for enrichment, including through the arts,
reputational reasons to foster and entertainment and sports. Benchmarking based on
retain customer loyalty. These are all data collected by the Conference Board of Canada
important aspects of sustainability, indicates Air Canada’s total community investment
portfolio of $6.5 million is above the average of
and community involvement and 180 Canadian companies surveyed in 2011.
socio-economic impact are among
the top concerns identified in the There are three main avenues by which Air Canada
achieves these goals, the Air Canada Foundation,
materiality assessment forming the corporate community outreach initiatives, and
basis of this report. through commercial and other sponsorships.

CITIZENS OF THE WORLD 2014 50

AIR CANADA
FOUNDATION
By creating a distinct identity for
Air Canada’s community investment
program it raises the profile of the
Air Canada Foundation, builds
awareness of the causes it supports
and facilitates fundraising. The
primary focus of Air Canada’s
community involvement is on the
needs of children, particularly those
who are ill or otherwise disadvantaged.
Many of these activities are carried
out with the help of Air Canada
employees, who want to participate
in their local community and FUNDING
contribute to other communities Funding for the Air Canada Foundation comes from
elsewhere in the world. various sources and in 2014 it raised $1.4 million, a
45 per cent increase from 2013. Most of the funding
The Air Canada Foundation which was launched in
came from its signature fundraising event, the
2012 is registered in Canada as a not-for-profit
annual Air Canada Foundation Golf Tournament.
entity and provides assistance to Canadian
These funds were augmented by customer and
registered charities. Its priorities are the health and
employee donations, including a voluntary
well-being of children, connecting sick children to
employee payroll deduction plan. In 2014, an
the medical care they need, wish fulfillment, and
important fundraising development was the
the alleviation of child poverty. Additionally, it
opening of an account with the CanadaHelps
supports other major health-related causes that
website, which enables the Air Canada Foundation
have a broad impact on the lives of Canadians
to accept credit card donations on a monthly or
and, when the necessity arises, in communities
one-time basis.
throughout the world.
Customers are further encouraged to contribute
The Air Canada Foundation is governed by a
through the Every Bit Counts™ program, which
stand-alone board of directors and an annual
invites them to donate change of any denomination
report of its activities is presented to the
on-board aircraft or through branded airport
Air Canada Board of Directors by the responsible
receptacles. Customers also have the opportunity
executive, the Chairperson of the Air Canada
throughout the year to donate Aeroplan® miles,
Foundation and Vice President of Corporate
notably through a dedicated Aeroplan® Match Day
Communications.
promotion held each year. In 2014, the day yielded
The Air Canada Foundation fulfils its mandate by 1.6 million Aeroplan miles – a significant increase
providing eligible registered charities with in-kind from the 525,000 Aeroplan miles collected in 2013.
support (including promotional tickets) as well as There are also miscellaneous activities through the
donations of cash and Aeroplan® Miles. year to raise funds.

CITIZENS OF THE WORLD 2014 51

DREAMS 25TH ANNIVERSARY
Dreams Take Flight first flew in 1990 after a group of
Toronto Air Canada employees got a notion to take
less-fortunate children to a local amusement park.
However, the idea swiftly morphed through their
enthusiasm into an ambitious one-day journey to
Disney®. Today, Dreams Take Flight is a registered
national charity with chapters in Vancouver,
Edmonton, Calgary, Winnipeg, Toronto, Ottawa,
Montreal and Halifax. Over 25 years it has whisked
nearly 25,000 physically, mentally and socially
challenged children off to Walt Disney World or
Disneyland for a day of wish-fulfillment.
Each year, through the Air Canada Foundation, the
airline supplies eight aircraft and crew to operate
flights from Canada’s major cities on a trip that is
truly magical, enriched by the generosity of corporate,
community and individual donors. dreamstakeflight.ca

The day starts in a pre-dawn carnival atmosphere at

the hangar where children board the aircraft, races
through the exhilaration of what for many is their first
flight, and peaks with non-stop VIP treatment at
Disney. It peacefully ends with the (much quieter)
homeward journey of the exhausted pilgrims.

BENEFICIARIES OF AIR CANADA Foundation provides over 100 airline tickets to bring
FOUNDATION SUPPORT children from remote locations to a city hosting a
The Air Canada Foundation carries out its charitable flight; promotional tickets for fundraising and in 2014
activities by providing various types of support the Air Canada Foundation made a cash grant of
including promotional tickets, financial grants, and $50,000 to Dreams Take Flight Canada to assist
donations of Aeroplan® miles. In 2014, the chapters in financial difficulty.
Air Canada Foundation donated 1,050 promotional Hospital Transportation Program – An important
tickets to charities, 10.6 million Aeroplan® miles to role played by the Air Canada Foundation is
Canadian pediatric hospitals and $534,000 in facilitating the transport of young patients for
financial grants. treatment outside their communities. In 2014, nearly
Highlights include: 10 million Aeroplan® miles were donated to pediatric
hospitals across Canada through the Hospital
Dream Take Flight (DTF) – The single largest Transportation Program. A further one million
recipient of the Air Canada Foundation’s support. Aeroplan® miles were given to Hope Air, a registered
This employee-led charity celebrated its 25th national charity that provides free flights for both
anniversary in 2014. Each year, Air Canada donates children and adults who cannot afford the cost of air
through the Air Canada Foundation aircraft for eight travel to access medical expertise or specialized
Dreams Take Flight1 trips to Disney® for thousands of medical technologies unavailable locally.
children from major cities across Canada. These trips
provide children, who would otherwise not have the Volunteer Involvement Program – The Air Canada
opportunity, a fun-filled, all-expense-paid day at Foundation runs an in-house Volunteer Involvement
Disney where they receive VIP treatment. To ensure Program in support of employees who are actively
the continued success of DTF’s work, the Air Canada involved in their community. Airline tickets are
1 Dreams Take Flight is a not for profit charitable organisation

CITIZENS OF THE WORLD 2014 52

awarded in support of fundraising activities by Canada, a group that assists children and families in
charitable organizations for which employees are conflict areas such as Uganda, Afghanistan and the
involved. Approximately 100 individual employees Democratic Republic of Congo.
requested support through the program during the
On occasion, the Air Canada Foundation also serves
year for a wide range of causes, many of which were
as a mechanism for Air Canada to deliver support for
featured in employee communications vehicles to
exceptional events or causes. In recognition of the
raise awareness. This program has the added benefit
airline winning its fifth consecutive SkyTrax Award as
of promoting employee engagement.
Best Airline North America, the company donated
CASH GRANTS $5,000 each to five charities across Canada chosen
by employees. Similarly, the Air Canada Foundation
In 2014 major recipients of cash grants included
made a donation on behalf of employees taking part
Breakfast Club of Canada, Dreams Take Flight, the
in the Ice Bucket Challenge to raise money for ALS
Children’s Miracle Network’s 14 member Canadian
research. In 2014 the Air Canada Foundation
pediatric hospitals. Other beneficiaries were the
participated in Save the Childrens’ “Make the World
Shriners Hospitals for Children™ – Canada, to which
Better with a Sweater” campaign. Employees across
the Air Canada Foundation has committed $50,000
the system embraced the initiative by purchasing a
per year for a five-year period. The Air Canada
special button created by the Air Canada Foundation
Foundation also made a three-year commitment of
or wearing their holiday sweater. The Air Canada
$25,000 per year to Pathways to Education Canada
Foundation once again supported employees
towards the creation of a scholarship fund so youth
participating in the annual Enbridge Ride to Conquer
from low-income communities can graduate from
Cancer. In 2014, company teams from Air Canada
high school and enter into post-secondary education
took part in the British Columbia, Ontario and
and training. Another beneficiary was War Child

CITIZENS OF THE WORLD 2014 53

Quebec sections of this event, raising a total of
more than $155,000 towards cancer research.
HELPING CHILDREN
In addition, Air Canada employees at Air Canada The Montreal Sexual
Assault Centre,
Vacations® also work to support the Montreal established in 1980, is a
Children’s Hospital, raising $76,869 since 2010 non-profit organization
that serves the needs of
through their participation in the Pedal for Kids those who have been
fundraiser. sexually assaulted,
recently or in childhood.
PROTECTING CHILDREN It also provides
information and support
The Air Canada Foundation helps children in other for people close to the
victims.
ways too; once again, in 2014 it was the Title
Sponsor for the Beyond Borders ECPAT Canada Media The Centre runs a
bilingual volunteer crisis line, offers accompaniment to
Awards and Symposium to combat child sexual hospitals and courts, and provides counseling— to name
exploitation. The awards recognize Canadian just a few of their services. A volunteer at the Centre since
journalists for exemplary work covering issues related 2009, Heather Watkins, a flight attendant based in
Montreal, has been on the fundraising committee for the
to the sexual exploitation of children. Furthermore, in annual raffle for two years and worked the crisis line for
2014 three short Public Service Announcements sexual assault before that.
(PSAs) denouncing child abuse were created and The raffle raises money towards the salaries of the Centre’s
introduced on-board all Air Canada flights. psychosocial intervention workers.
Air Canada was the first airline in Canada and the “We have many great prizes, but none are as coveted as the
second in North America to air on-board videos first prize of the Air Canada tickets,” said Heather.
denouncing child sexual exploitation. “This year, with the support of the Air Canada Foundation,
we were able to sell all 3,000 tickets for the event, raising
$15,000. This was a first for us and we have agreed to print
and sell more tickets next year.”

HELPING FAMILIES
Leanne Niewerth, an
Air Canada flight attendant,
has volunteered with Families
for Children (FFC) for the past
30 years.
FFC is a non-sectarian
organization that exists to
fulfill the needs of children
and young adults with
physical or mental
disabilities. By providing
housing, education, special
medical care and vocational
training, FFC gives children in India and Bangladesh the
opportunity to reach their full potential and live with dignity.
“A work colleague of mine, Terry Twentyman, my sister Nancy
and I decided three years ago that this cause was important to us
and that we were going to organize a fundraiser for FFC. That is
when we came up with our Bangla Bash Dance and the Air
Canada Foundation is a very important part of our fundraiser,”
said Leanne.
“The two airline tickets are a money-maker for the event. This
year we raised $8,143 – enough to support 55 children for a year.”

CITIZENS OF THE WORLD 2014 54

 AC PARALYMPIC AMBASSADOR
TO SOCHI
As part of Air Canada’s sponsorship of the Olympics and Paralympics, the
Air Canada Foundation was given the opportunity to take a Canadian
wheelchair athlete to Sochi for the 2014 Paralympic Games.
A recommendation was submitted by the Shriners Children’s hospital and
13-year-old Spencer Lambert of Winnipeg, Manitoba, was selected. Spencer
was born with Spina Bifida and has required several operations over the
years. He was an obvious choice for the trip; he loves sports and is an
enthusiastic participant in sledge hockey, wheelchair basketball, rugby and
tennis.
A huge sports fan and sledge hockey player, Spencer has two dreams. The
first was to meet the world-renowned Canadian Sledge Hockey team. The
second is to represent Canada one day at the Paralympic Games.
His first dream was realized thanks to Canadian Paralympic Committee and
its sponsors. A sponsor-hosted reception provided Spencer with the
opportunity to meet his hockey sledge heroes and to present them with a
banner of encouragement signed by his entire Manitoba Sledge Hockey
Team. Spencer’s Sochi experience included access to alpine and cross-
country skiing, sledge hockey and curling.
He was also there to witness the thrill of Canadian athletes winning Gold,
Silver and Bronze medals in various ski events as well as sharing the
experience of the medal presentations with other fans in the Canadian
delegation.

COMMUNITY PRESENCE strengthening regional business and community

relationships. As part of the outreach function, the
senior vice president and our community relation
In order to perform outreach and teams visited many communities across the country
remain responsive to local and made public presentations to local stakeholders
communities, Air Canada devotes in 13 local communities during 2014.
considerable resources to community This management structure underscores Air Canada’s
relations and regional markets. commitment to work in partnership with local
Management of these community political and business leaders with the objective of
relations programs is the responsibility profitably meeting local demand and contributing to
of the Vice President of Corporate the development of Air Canada’s global network.
Strategy, Industry and Government While these activities advance the airline’s
commercial interests, they nonetheless promote
Affairs, and there are three regional sustainable communities as it is well documented
director positions for government and that air linkages stimulate business and economic
community relations for Eastern, activity.
Central and Western Canada.
This is demonstrated by the reception Air Canada
Additionally, Air Canada has a Senior Vice President, received during the year from local communities
Regional Markets, with overall responsibility for such as Sydney, Nova Scotia, and Terrace, B.C. where
strategic direction of Air Canada’s regional service was enhanced during 2014. Even in larger
operations, including direct involvement in centres, the importance of aviation is not overlooked,

CITIZENS OF THE WORLD 2014 55

 OUR MEN AND
WOMEN RESPECTFULLY
SALUTE YOURS.
PROUD TO SUPPORT THOSE
WHO SERVE AND THE FAMILIES WHO
STAND STRONG BEHIND THEM.

and both Air Canada and Air Canada rouge® to support communities
participated in events to mark the opening of a new are non-commercial, such
runway in Calgary that attracted more than 17,000 as Air Canada’s decision NOS HOMMES ET NOS
visitors from the area. to provide flights at cost FEMMES VOUS SALUENT
to Moncton for RCMP AVEC RESPECT.
Beyond this, Air Canada also partners with various
and other peace officers FIÈRE D’HONORER CEUX ET CELLES
levels of government to support trade missions by QUI NOUS ONT SERVIS AINSI
attending a funeral QUE LEURS FAMILLES QUI LES ONT
business and political leaders to foreign countries. SOUTENUS ET ENCOURAGÉS.
following the tragic
This helps open the door to foreign markets for local
shooting of five RCMP
manufacturers and can also raise awareness of
officers in the
investment opportunities in Canada from abroad. In
community. The airline
2014, the airline assisted with several trade missions,
also partnered with the
including to China by Canada’s premiers though the
True Patriot Love
Council of the Federation, the B.C. government’s
organization for the Day
mission to India, China and the United Kingdom,
of Honour
along with our Star Alliance® airline partners, and a
commemorating
mission by the New Brunswick government to
Canada’s fallen soldiers in Ottawa.
1103700_Sponser_TPL_AD_4.625x8.375po_4C_BIL.indd 1 10/8/14 2:5

France and Belgium.

Air Canada’s community involvement extends to
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LOCAL JOBS Description : Sponser_John_Toronto

education – it operates a number of apprenticeship

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and work study programs – including ongoing

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Sometimes, the impact is more direct. For example, Nom du fichier : 1103700_Sponser_TPL_AD_4.625x8.375po_4C_BIL Sortie laser @ 100 %
COULEURS: C M Y K DIE 000 000 000
the company expanded its call centre in support of the Centre for Labour Management
New Brunswick creating welcome local jobs, Studies at Ryerson University and it is a supporter of
prompting laudatory comments from civic officials the Trudeau Foundation and the Queen Elizabeth
and even the provincial premier. Another initiative Jubilee Scholarship. It is also why Air Canada partners
was a program to participate in a national tourism with Parks Canada and others to support the
promotion for Prince Edward Island. Other measures Canada’s Coolest School Trip contest, which took

CITIZENS OF THE WORLD 2014 56

a winning class from Rivière-au-Renard in Quebec’s
Gaspe, to the Gulf Islands near Victoria, B.C. Other
divisions within Air Canada support community WE’RE PROUD
programs too, for example Air Canada Cargo was TO bE PART
involved in the shipment 50 skids of Ebola equipment
OF THE
ORCHESTRATION.
to Africa and Air Canada Vacations® also maintains
an active volunteer program, giving employees a paid
day off each year to do volunteer work.

SPONSORSHIPS
A third area of community
involvement for Air Canada is its
sponsorship programs, nationally
and at a regional and local levels. Official Airline of the OSM
for over 30 years.

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commercial reasons but also on

the understanding that beyond
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helping in essential areas such as

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COULEURS: C M Y K DIE 000 000 000

health care and economic

development, Air Canada can
also play a vital cultural role in
the communities it serves. This
includes not only the arts, but also Toronto (it is also a partner with Travel Gay Canada), the
entertainment, sports and other Calgary Stampede and Vancouver’s Walk with the Dragon.
areas that enrich life.
CANADIAN FILM
ARTS GROUPS In terms of the arts, Air Canada is actively committed
Air Canada sponsors a number of orchestras and to Canadian film and television. All mainline aircraft
ballets across the country. Among those who benefited are equipped with personal seatback In-Flight
from Air Canada’s sponsorship were the Orchestre Entertainment (IFE) systems that offer at no charge
symphonique de Montréal, Orchestre Métropolitain, over 600 hundred hours of films and TV programs to
National Arts Centre Orchestra, Toronto Symphony its 38 million customers, effectively turning Air Canada
Orchestra, Winnipeg Symphony Orchestra, Edmonton into one of the country’s largest exhibitors of audio-
Symphony Orchestra, Vancouver Symphony Orchestra video content. The IFE has a Canadian film channel
and the National Youth Orchestra of Canada, Les that gives domestic artists’ productions broad
Grands Ballets Canadiens de Montréal, National Ballet international exposure. In 2014, Air Canada partnered
of Canada and Royal Winnipeg Ballet. with other major Canadian companies and
organizations to promote National Canadian Film Day
The company also supports museums and cultural events, on April 29. Also as part of its Canadian content
including the new Canadian Museum for Human Rights in strategy, Air Canada also supported Canadian
Winnipeg and Air Canada Cargo was a sponsor of the emerging filmmakers though its 8th annual Air Canada
popular Marco Polo travelling exhibit at the Montreal’s enRoute® Film Festival™ by making their films viewed
Pointe-à-Callière Museum of Archeology and History. by thousands of passengers. Complementing this,
Other community events included WorldPride 2014 in Air Canada has developed partnerships with important

CITIZENS OF THE WORLD 2014 57

Canadian content creators and distributors to make Through its Canada’s Best New Restaurants feature,
Canadian television programming available, exposing the magazine’s list of the ten best new restaurants in
Canadian content to a worldwide audience. In 2014, Canada is extensively covered by national and local
the company renewed its association with the media, giving these establishments welcome exposure.
television show The Amazing Race Canada, one of the And it’s Hotel Design Award program also recognizes
most watched series ever on Canadian television. Canada’s best hotel designers. Air Canada enRoute®
also co-sponsors a literary prize and publishes the
To appeal to a broader customer base and meet its
work of winners – both established and developing
obligations as the only Canadian airline governed by
Canadian writers – in three editions each year.
the Official Languages Act, Air Canada makes its
services, including its entertainment, accessible to Air Canada sponsors other awards too, notably The
both a French and English audience. The IFE’s Franco Indspire Awards to recognize indigenous professionals
Cinema channel features Canadian programming and youth with outstanding career achievements.
produced in French in Canada and Air Canada also Recipients are chosen to serve as role models for all
orders movie soundtracks dubbed in French Canadian indigenous peoples. Air Canada has been involved in
for its most recent movies releases. Air Canada is these awards since their inception in 1993, presenting
also a partner of imagineNATIVE and Reel Asian a lifetime achievement award. Deepening its
Festival featuring respectively movies produced by involvement with native groups, the company in
Canadian aboriginal and Asian filmmakers. Further, 2014 expanded its involvement in imagineNATIVE
Air Canada sponsors numerous French language Film + Media Arts Festival, which programs film,
cultural events across Canada including the national video, radio and new media works made by Canadian
Rendez-vous de la francophonie and regional events and international indigenous media artists in key
including the Festival Franco-ontarien in Ottawa, the creative roles as producers, directors, and writers.
Franco-Fête de Toronto, the Festival du Voyageur in
Another award popular among aviation enthusiasts is
Winnipeg and the Festival d’été francophone de
the Webster Memorial Trophy Competition. It is an
Vancouver.
event sponsored by the company for the top
NURTURING CANADIAN TALENT amateur pilot in Canada each year.
Air Canada promotes the development of Canadian HUMAN RIGHTS
talent. It has built upon its position as a major
In 2014, Air Canada also sponsored the Equitas
Canadian film exhibitor and through the Air Canada
Awards for Human Rights. Equitas’ programs provide
enRoute® Film Festival encourages the development
front-line human rights defenders and educators,
of Canadian student and emerging filmmakers. Short
policy makers as well as children and youth with the
films selected by a prestigious jury drawn from the
knowledge, skills and attitudes required to promote
Canadian film industry are screened at high-profile
human rights values and to combat inequality,
events in Vancouver, Toronto and Montreal and also
exclusion and other forms of human rights abuse.
made available on the IFE system. One feature is the
People’s Choice award that encourages viewers to SPORTS
vote for their favourite film and it serves to generate
Sports are another important expression of
further interest.
Air Canada’s commitment to communities as health
Canadian artists working in other media are also and fitness are elements of sustainability. To this end,
supported by Air Canada, whose in-flight magazine, the company is a supporter of both amateur and
Air Canada enRoute®, features work from Canadian professional sports.
writers, photographers and illustrators. Canadian
Air Canada has been a sponsor of Canada’s Olympic
subjects and destinations account for a large
Team since 2006 and a sponsor of Canada’s
proportion of the magazine’s content with the most
Paralympic Team since 2007, providing through these
popular edition of all being the annual food issue.

CITIZENS OF THE WORLD 2014 58

partnerships special services and transportation for
training and competitions. In 2014, Air Canada
supported athletes travelling to the Sochi Winter
Olympic Games and actively promoted our Canadian
athletes through numerous marketing campaigns. The
celebrations of the athletes’ achievements including
the award for Air Canada’s Athlete of the Year were
also important elements of employee engagement
initiatives. In 2012, the company inaugurated the
annual Air Canada Athlete of the Year Award in
partnership with the Canadian Olympic Committee.
It recognizes one exceptional Canadian athlete who
demonstrates a drive for excellence, leadership and
integrity. In 2013, the award’s appeal was broadened
by asking Canadians to vote on-line for their favourite
athlete, further increasing the profile of the Skier Alex Bilodeau receiving his Athlete of the Year award
candidates and Olympic athletes in general. The 2014 presented by Craig Landry, Vice President Marketing

winner was freestyle skier Alex Bilodeau, the moguls

gold medalist at Sochi.
Air Canada also maintains commercial sponsorships
Hockey Canada and supports the country’s elite
with Canada’s National Hockey League Teams and
under-18 hockey talent with transportation to a
the Toronto Raptors basketball team, as well as the
number of domestic and international hockey events.
Toronto Marlies and St. John’s IceCaps of the
American Hockey League. It is the official airline of

PROGRESS ON 2014 GOALS

• Meet fundraising target of $750,000 for 3rd annual edition of
Air Canada Foundation Golf Tournament ACHIEVED
• Increase financial grant to charities by 25 per cent NOT ACHIEVED
• Incorporate the Air Canada Foundation in Air Canada’s Brand Marketing Initiatives ONGOING
• Apply new livery on Air Canada A320 aircraft to serve as flying billboards PROJECT
to provide the Air Canada Foundation visibility throughout and outside Canada CANCELLED
• Increase Air Canada’s presence in regional communities through senior executive
speaking engagements and ongoing dialogue with community leaders ACHIEVED

GOALS FOR 2015

• Incorporate the Air Canada Foundation in Air Canada’s Brand Marketing Initiatives
including video content
• Achieve fundraising target of $1 million for 4th annual edition of Air Canada Foundation
Golf Tournament
• Increase financial grants to charities by 25 per cent over previous year
• Expand our presence in local communities by increasing management presence in
local events and management dialogue with local stakeholders

CITIZENS OF THE WORLD 2014 59