28 February 2023Canadian Aviation News

MONTREAL, Feb. 28, 2023 /CNW/ – Air Canada today issued the following statement in response to reports about the Greater Toronto Airport Authority imposing limits on carrier operations at Toronto-Pearson airport.

Air Canada was first advised of the GTAA’s plans in August 2022, and so it designed its 2023 winter schedule with these limitations taken into account and anticipates no significant changes to its schedule for the March Break travel period. It subsequently received information about GTAA’s plans for summer 2023 and similarly designed this coming summer’s schedule to meet those parameters. 

It is Air Canada’s policy to work with its industry partners to meet the requirements of airports and other third parties to drive operational improvements and support the smooth running of Canada’s air transport system. This includes, as in this case, adapting its schedule as required to ensure operational stability, and is a normal process.

The Greater Toronto Airports Authority, which operates Toronto's Pearson International Airport, says it will be implementing a number of measures ahead of a busy travel season to 'flatten peak-hour schedules.' (Darek Zdzienicki/CBC)

 

CANADIAN AIRLINE AND INDUSTRY NEWS

As Porter Airlines' inaugural flight from Calgary to Toronto taxied onto the runway, the skies above Alberta became even more crowded.

As of Wednesday, the Toronto-based airline is the latest to find a landing spot at YYC in a marketplace that has become exponentially more competitive since before the COVID-19 pandemic.

Porter Airlines has been in operation as a regional airline in Eastern Canada for 16 years.

“Toronto to Calgary is a very important market in Canada, and certainly a market that our customers in Eastern Canada have been interested in us being able to serve for a number of years,” said Kevin Jackson, executive vice-president and chief commercial officer for the airline. Porter has a goal of chipping away at the economy-plus segment dominated by Westjet and Air Canada, by offering services other airlines have cut back on — such as beverages in glassware, free beer and wine, free high-speed Wi-fi, free snacks and more space with no middle seats.

The carrier is hoping the record number of people relocating from Toronto to Calgary will provide a foothold for its western expansion. It will offer two flights daily from Calgary International Airport to Pearson International Airport.

Porter last week also launched its route from Edmonton to Toronto, and Jackson said the company has plans to further expand in Western Canada.

Lynx Air, which went airborne 10 months ago, is the newest airline based out of Calgary.

It offers 90 flights a week and will hit 240 this summer. In Calgary, it will go from 60 flights and 11,000 seats a week to 115 and 21,000 seats. Meanwhile, it is preparing for 105 per cent growth out of Toronto, hitting 150 flights and 30,000 seats a week.

The airline is serving a different segment than Porter, however, targeting the ultra-low-cost carrier, in direct competition with Flair and Westjet's Swoop.

Merren Mcarthur, CEO and president of Lynx Air, said only about four per cent of the capacity in Canada is low-cost, in contrast to Europe at 42 per cent.

While it is growing domestically, the airline is also attempting to be the first Canadian a la carte airline into major markets, with recent expansion to Los Angeles, Las Vegas and Phoenix.

“We see that there's a huge opportunity and fares have traditionally been too high as a result of the small amount of low-cost capacity here,” she said. “Our model is actually about going into markets where the fares are high and stimulating and inspiring more people to travel by air because they can afford to, and that's really growing the market.”

Robert Kokanis, president and managing director of Airtrav Inc., a Toronto-based aviation advisory firm, said while there have been failures in the past for affordable flying, there was still a void that had not been properly filled in this category. This has allowed newer entrants, such as Lynx, to carve out a space.

Under the guidance of Alexis von Hoensbroech for the past 12 months, Westjet has shifted its focus back to its roots of serving Western Canada and lowering fares. Part of this transition has been expanding routes out of Edmonton, Calgary and Vancouver, and growing its footprint south of the border.

Von Hoensbroech, president and CEO of Westjet, said he welcomes the healthy competition.

Kokanis said there is risk of oversupply by the end of 2023 if the marketplace continues to expand with the current projections and forecasts, meaning there could be some casualties.

“By the end of the year, there will be too many seats in the Canadian marketplace,” he said.

“You don't necessarily want to have the race to the bottom. Everywhere, everybody's pulling service and quality of experience — Westjet is not trying to do that whatsoever, nor is Porter. But time will tell with all this huge amount of capacity in the marketplace.”

·Tuesday, February 21, 2023

Air Canada executives said it will take a couple more years for the full revenue potential of the incoming freighter fleet to take effect while the cargo market goes through a slump.

Air Canada’s cargo revenue fell 41% in the fourth quarter to CA$288 million ($214 million) from 2021, reflecting overall market weakness related to inflation, an economic slowdown and high retail inventories that afflicted most airlines. For the full year, cargo sales declined 15% to $935 million. 

The results were still solid considering Air Canada (OTCUS: ACDVF) set a record of $1.2 billion in cargo revenue in 2021, an unprecedented year for supply chain disruptions that drove shippers to airfreight. For the final three months of the year, cargo sales were 55% better than the pre-pandemic baseline of 2019.  

The fourth quarter typically is the strongest shipping period, but airlines did not experience any bump in business as customers purchased goods earlier in the year on fears of ocean shipping delays and consumers tightened their pocketbooks while shifting spending to services.

Comparisons with 2019 are also difficult because Air Canada made a strategic decision during the pandemic to establish a freighter division and now operates three Boeing 767 converted freighters that can carry much larger quantities of goods per flight than passenger aircraft. The airline also no longer operates cargo-only passenger freighters that were deployed during the pandemic when much of the passenger fleet was grounded.

Fourth-quarter cargo revenue at United Airlines fell 35% year over year. American Airlines experienced a 23% decline and Delta Air Lines’ cargo revenue was 18% less than in 2021. 

Air Canada is scheduled to have 12 main deck cargo jets by the end of 2024, but analysts say full revenue benefit from the cargo investments will take time to pay off with weak cargo demand and a growing supply of aircraft capacity combining to drive down rates. The airline is poised this year to receive two more used 767 jets converted for upper-deck freight and three more next year. It already has taken possession of two production freighters from Boeing that have yet to enter service and is scheduled to take delivery of two new Boeing 777 freighters in 2024. 

The cargo investments dampened free cash flow and won’t begin to pay material dividends until 2025 or 2026, CEO Michael Rousseau said during a briefing for analysts.

Fadi Chamoun, transportation analyst for BMO Capital Markets, said in a research note that the freighter investments are likely to squeeze cash and returns on invested capital in the short term. BMO estimates that Air Canada is spending $520 million to $594 million for the cargo aircraft and infrastructure.

“We see the air freight market being in an oversupply condition well into 2024, and there is limited visibility into the margin contribution from this segment over the medium term. The investment in cargo is responsible for the bulk of the downward revision in the company’s cumulative free cash flow guidance from $2.6 billion to $1.85 billion for the 2022-2024 timeframe,” he said.

Executives say the freighters are increasing business opportunities because they provide more direct scheduled service and certainty, while the passenger network extends connectivity to more cities than the freighters can serve. Freighters also offset seasonal capacity swings in the passenger network, giving shippers year-round options.

Chief Commercial Officer Lucie Guillemette said that the freighters will quickly enable the carrier to capture more business in the trans-Atlantic market, but acknowledged that it will take longer to increase revenue in Asia. 

“Most of the freighters are operating in markets where we don’t have enough belly capacity or they’re operating markets where we don’t actually operate passenger [aircraft],” she said.

Cargo network build out

Air Canada is expanding its freighter network as it adds more dedicated cargo jets. This month it began scheduled freighter service to Liege, Belgium, and plans to expand the freighter network to Basel, Switzerland, in April. The cargo division is operating two flights per week to Liege, with service expected to increase to three flights per week later this year. Basel, a major European pharmaceutical center, will get two flights per week. The flights originate in Toronto with a stop in Halifax.

The new routes are in addition to the recent start of service to Dallas, Atlanta and Bogota, Colombia.

On Friday, Jon Turner took command of the cargo division following the resignation of Jason Berry, who is credited with implementing the initial buildout of the freighter fleet and network. 

Air Canada Cargo this month joined the Pharma.Aero collaboration forum where stakeholders in the pharmaceutical transportation sector share best practices for shipping and distribution of temperature-sensitive medicines. Air Canada last year expanded its cold storage facility in Toronto and uses a wide range of refrigerated containers such as the Envirotainer Releye RLP to keep pharma products at the correct temperature. 

The airline also expanded its warehouse at Frankfurt airport in Germany, is in the midst of a huge remodel of its London Heathrow cargo terminal and is expanding its Vancouver terminal in preparation for operating the 777 freighters on Asia routes. 

And Air Canada signed a memorandum of understanding with Emirates SkyCargo to work together on expanding interline options and block space agreements, giving customers more flexibility for routing their shipments around the world.

“With the opening of 13 new freighter markets in 2022, and more set to be inaugurated in 2023 and 2024, Air Canada Cargo remains laser focussed on building a freighter program that complements and supports our robust global passenger network and ensures our customers have access to reliable year-round capacity on critical trade lanes,” said Turner, who previously was vice president of in-flight services in the passenger division, in a LinkedIn post.

Overall, Air Canada reported a fourth quarter adjusted loss of $161.2 million that was below Wall Street’s consensus estimate despite a record $3 billion in passenger revenue, double the amount in the same period of 2021 and 2% higher than in 2019. The carrier saw improved passenger traffic, including in international markets, but was bedeviled by higher costs for fuel, labor and maintenance that 

Executives said advanced bookings are still strong but that results aren’t expected to return to pre-pandemic levels until 2024. Passenger capacity is set to grow 24% this year. 

PUBLISHED 3 HOURS AGO

 

Air Canada Cargo and Emirates SkyCargo sign agreement to enhance networks and reach

Air Canada Cargo and Emirates SkyCargo have signed a Memorandum of Understanding (MoU) to deliver more benefits to their air freight customers around the world.

The MoU, which builds on the airlines’ strategic commercial partnership announced last year, was signed at Emirates Headquarters in Dubai, UAE by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo and Matthieu Casey, Managing Director Commercial, Air Canada Cargo.

Under the terms of the MoU, Air Canada Cargo and Emirates SkyCargo will work closely on a number of initiatives, which include expanding cargo interline options and block space agreements, pending any required regulatory approvals. These enhancements aim to offer freight customers of both airlines access to more capacity on a larger combined global network.

Air Canada Cargo will have access to Emirates SkyCargo’s high-frequency distribution network through the belly-hold of Emirates scheduled passenger flights to over 140 global destinations, as well as the additional capacity offered by 11 freighters currently in the Emirates fleet. In return, SkyCargo will have access to over 60 cities in Canada and more than 150 cities across five continents through Air Canada Cargo thanks to a fleet of Boeing 767 freighters and the belly-hold capacity of Air Canada’s scheduled passenger flights.

Both airlines bring particular experience in handling unique cargo, such as oil and gas drilling equipment, car parts and pharmaceuticals on their dedicated fleet of freighters or passenger aircraft.

“We are thrilled to be further strengthening our cargo relationship with Emirates SkyCargo. This agreement enables both carriers to work more closely to optimize our respective freighter and belly capacity throughout each of our extensive and complementing global networks. Customers will benefit from these additional synergies by having access to an even greater array of options, destinations and streamlined handling when shipping globally,” said Matthieu Casey, Managing Director, Commercial, at Air Canada Cargo.

“Emirates SkyCargo is committed to being a leading player in the global air cargo industry providing our customers with the highest standards of products and services. Cooperating with Air Canada Cargo will offer our clients added value through more rapid reach to new destinations in Canada via our Toronto and US gateways,” said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo.

Since announcing their strategic partnership in 2022, Emirates and Air Canada have implemented a passenger codeshare agreement that spans 46 destinations across North America, the Middle East, Asia and Africa, and have launched a Loyalty program partnership to allow Aeroplan and Skywards members to earn and redeem Miles and Points on all flights operated by Air Canada and Emirates, respectively.

MONTREAL, February 10, 2023

NASA and its international partners have approved the crew for Axiom Space’s second private astronaut mission to the International Space Station, Axiom Mission 2 (Ax-2).

 

Axiom Space’s Director of Human Spaceflight and former NASA astronaut Peggy Whitson will command the privately funded mission. John Shoffner of Knoxville, Tennessee, will serve as pilot. The two mission specialists, Ali Alqarni and Rayyanah Barnawi from the Kingdom of Saudi Arabia (KSA), are members of the inaugural Saudi national astronaut program. They are flying through an arrangement between KSA and Axiom Space.

 

“Enabling more people to go to space is an important component of NASA’s continuing efforts to grow the low-Earth orbit economy,” said Angela Hart, manager of NASA’s Commercial Low-Earth Orbit Development Program. “Private astronaut missions are a key component to enable a successful transition to a model of commercially owned and operated platforms in low-Earth orbit. I appreciate the commitment of our International Space Station and commercial partners to help us achieve this future.”

 

The Ax-2 crew will launch from NASA’s Kennedy Space Center in Florida aboard a SpaceX Dragon spacecraft and travel to the space station. Once docked, the private astronauts plan to spend 10 days aboard the orbiting laboratory implementing a full mission of science, outreach, and commercial activities. The mission, targeted for launch in spring 2023, will be the first private space mission to include both private astronauts and astronauts representing foreign governments, as well as the first private mission commanded by a woman.

 

“Axiom Space’s second private astronaut mission to the International Space Station cements our mission of expanding access to space worldwide and supporting the growth of the low-Earth orbit economy as we build Axiom Station,” said Michael Suffredini, president and CEO of Axiom Space. “Ax-2 moves Axiom Space one step closer toward the realization of a commercial space station in low-Earth orbit and enables us to build on the legacy and achievements of the station, leveraging the benefits of microgravity to better life on Earth.”

 

Whitson will become the first female commander of a private space mission, adding to her prior accomplishments, including as NASA’s chief astronaut and the first female commander of the space station. In addition, she will add to her standing record for the longest cumulative time in space by a NASA astronaut.

 

“I’m honored to be heading back to the station for the fourth time, leading this talented Ax-2 crew on their first mission,” said Whitson. “This is a strong and cohesive team determined to conduct meaningful scientific research in space and inspire a new generation about the benefits of microgravity. It’s a testament to the power of science and discovery to unify and build international collaboration.”

 

Shoffner, a businessman, has always had an interest in space, the stars, and flying, becoming a pilot at the age of 17 and since amassing than 8,500 flight hours and earning ratings for multiple aircraft types. He also is an advocate for science, technology engineering, arts, and mathematics (STEAM) education. 

 

The first private astronaut mission to the International Space Station, Axiom Mission 1 (Ax-1), launched April 8, 2022, with four private astronauts who spent 17 days in orbit working on 26 science payloads aboard the station and conducting more than 30 STEAM educational and public outreach engagements. The crew splashed down off the coast of Florida on April 25, 2022, to conclude the mission.

 

Private astronaut missions to the space station are a precursor to privately funded commercial space stations as part of NASA’s efforts to develop a thriving low-Earth orbit ecosystem and marketplace. NASA is currently reviewing proposals for the third and fourth private astronaut missions to the space station.

 

For more than 22 years, NASA has supported a continuous U.S. human presence in low-Earth orbit aboard the space station. The agency's goal is to enable a strong, commercial marketplace in low-Earth orbit where NASA is one of many customers for private industry. This strategy will provide services the government needs at a lower cost, enabling the agency to focus on its Artemis missions to the Moon in preparation for Mars while continuing to use low-Earth orbit as a training and proving ground for those deep space missions.

 

For more information about NASA’s commercial low-Earth orbit economy effort, visit:

 

https://www.nasa.gov/leo-economy

13 February 2023Canadian Aviation News

CALGARY, AB, Feb. 13, 2023 /CNW/ – WestJet today unveiled 20 new routes and three new destinations to the airline’s summer schedule. Offering a comprehensive network of connectivity between Western Canada and the United States, WestJet’s summer network additions feature new non-stop service to Washington Dulles, Detroit and Minneapolis, with new routes added to Atlanta, Austin, Chicago, Nashville and Seattle. In line with the airline’s previously announced strategic direction, WestJet is also expanding domestic travel options across Canada with increased frequencies and options to travel from coast-to-coast, and everywhere in between.

“We are thrilled to be expanding our network and giving our guests substantial opportunity to explore the U.S., and Canada from coast-to-coast this summer,” said Alexis von Hoensbroech, WestJet Group Chief Executive Officer. “From increased domestic options to expanded regional and transborder connectivity throughout Western Canada, our summer schedule demonstrates our unwavering commitment to fulfilling the diverse needs of Canadian travellers and ensuring we are the friendly, reliable and affordable airline they love.”

With strengthened domestic and transborder connectivity, WestJet will increase its service up to nearly 30 per cent in Calgary, 50 percent in Edmonton and 10 per cent in Vancouver when compared to 2022.

Expanded U.S. network with more routes and increased access to Delta hubs

This summer WestJet will introduce Minneapolis, Detroit and Washington D.C. (Dulles), to its network, in addition to investing in new routes and restoring service to an expansive list of U.S. destinations.

Through its longstanding partnership with Delta Air Lines, guests connecting through Minneapolis and Detroit will gain access to two more of the U.S. airline’s major hubs. Building on WestJet’s current service to Delta hubs, including Atlanta, Los Angeles, New York, and Seattle, WestJet guests will now have access to over 150 U.S. destinations on a single purchased ticket with check-in for all flights at the first departure, baggage tagged to their final destination and lounge access for select guests. Additionally, frequent flyers of both airlines will continue to enjoy extensive reciprocal benefits any time they fly with either carrier, including earning and redeeming in their preferred program.

Highlights of WestJet’s summer 2023 transborder and international service

Destination	Start Date	Peak Season Frequency	Departure Time	Arrival Time
Calgary – Austin*	May 18	2x weekly	09:40	14:30
Calgary – Chicago*	May 18	4x weekly	12:15	16:40
Calgary – Detroit1	May 26	5x weekly	12:35	18:05
Calgary – Washington D.C. (Dulles)	June 2	3x weekly	09:45	16:02
Edmonton – Minneapolis1	June 2	5x weekly	08:15	11:46
Edmonton – Seattle1	May 19	5x weekly	10:30	11:30
Vancouver – Atlanta1	May 17	4x weekly	22:25	06:05
Vancouver – Nashville	May 19	2x weekly	10:00	16:19
Vancouver – Orlando*	May 6	1x weekly	11:00	19:52
Winnipeg – Los Angeles3	Apr 30	3x weekly	07:00	08:38
Toronto – Bermuda3	May 5	2x weekly	07:00	10:42

*Resumption of service/ 1 Delta hub/ 3 Continuation of winter service

Enhancing non-stop west to east connectivity

As part of WestJet’s new strategic direction, the airline is taking strides to further provide guests with extensive opportunities to seamlessly and affordably travel across Canada. Substantially strengthening Canadian connectivity, WestJet is adding five new routes between Eastern and Western Canada, further positioning its network to support travel demands across the country.

Destination	Start Date	Peak Season Frequency	Departure Time	Arrival Time
Calgary – Moncton	June 14	3x weekly	09:15	16:49
Calgary – Thunder Bay*	June 29	3x weekly	14:00/15:45	18:36/20:21
Calgary – Quebec City*	May 19	4x weekly	17:55	23:55
Edmonton – Charlottetown	June 14	1x weekly	10:25	17:58
Edmonton – London	May 19	2x weekly	10:25	15:52
Edmonton – Moncton	June 29	2x weekly	10:25	17:57
Edmonton – Ottawa*	Apr 30	6x weekly	09:00	14:43
Edmonton – Montreal*	June 30	2x weekly	01:00	07:03

*Resumption of service

Bringing Western Canadian communities closer through a strengthened regional network

As Western Canada’s undisputed home-team carrier, WestJet is enhancing its aviation gateway for business and leisure travel opportunities by further strengthening regional connectivity with the resumption of non-stop flights and increased frequencies.

Destination	Start Date	Peak Season Frequency	Departure Time	Arrival Time
Calgary – Terrace*	May 1	4x weekly	09:40/14:10	10:58/15:28
Edmonton – Nanaimo*	April 30	2x weekly	10:30	11:29
Edmonton – Penticton*	July 1	2x weekly	11:00	11:27
Kelowna – Regina*	May 21	2x weekly	17:30	20:34
Kelowna – Saskatoon*	June 2	2x weekly	17:35	20:29
Kelowna – Winnipeg*	June 2	3x weekly	19:15	23:33
Vancouver – Regina*	Jun 30	2x weekly	20:45	23:47
Winnipeg – Victoria*	April 30	2x weekly	17:30	18:28

*Resumption of service

Additional quotes

“Delta is excited about WestJet’s expanded US-Canada network in summer 2023,” said Perry Cantarutti, senior vice president Alliances and International for Delta. “We already have a strong codeshare network with WestJet, and extensive reciprocal benefits for our frequent flyers. With both increased flights to Delta’s hubs in Atlanta and Seattle, as well as new WestJet flights to our hubs in Minneapolis/St. Paul and Detroit, we look forward to growing our partnership, offering new travel and connection options to more customers, and increasing competition.”

“We’re thrilled to welcome WestJet to Minnesota and are pleased to add an important business route to Edmonton from MSP,” said Brian Ryks, CEO of the Metropolitan Airports Commission, which owns and operates MSP. “WestJet’s arrival also opens up new connections for travelers across Western Canada and the United States leveraging their codeshare with Delta Air Lines, MSP’s largest carrier.”

“We are pleased to have WestJet begin operations at Detroit Metropolitan Wayne County Airport. With the addition of WestJet, our customers will be able to fly directly from Detroit to Calgary for the first time since 2005. We’re hoping this route will also give our Canadian neighbors one more reason to visit our great region, “said Chad Newton, Wayne County Airport Authority CEO.

“Dulles International Airport welcomes WestJet to the Washington, D.C., region with this first-ever service to Calgary,” said Chryssa Westerlund, Airports Authority executive vice president and chief revenue officer. “Calgary will become the 60th international destination from Washington Dulles, and WestJet will be our 40th air carrier. We are thrilled to welcome WestJet to Dulles and to provide customers this new link between Western Canada and Washington.”

About WestJet

13 February 2023Canadian Aviation News

Now serving every Atlantic Canada province

TORONTO, Feb. 13, 2023 /CNW/ – Porter Airlines is launching direct service between Ottawa International Airport and Charlottetown Airport, with flights taking off on May 17.

The new daily, non-stop route is to be served by 78-seat De Havilland Dash 8-400 aircraft. Porter’s genuine hospitality and elevated onboard service, including premium snacks, and free beer and wine in glassware will be experienced by all passengers. PorterReserve, a new, all-inclusive fare, also provides dedicated airport check-in, early boarding, enhanced legroom, two checked bags and the ability to change flights without a fee.

“Porter is continuing to invest in regional flying across Eastern Canada,” said Kevin Jackson, executive vice president and chief commercial officer, Porter Airlines. “Charlottetown is an entirely new destination for us and the addition of Prince Edward Island means that Porter is serving every Atlantic Canada province for the first time.”

Porter currently serves Moncton, Fredericton, Halifax and St. John’s, N.L., in the region.

Porter will be the only airline offering daily non-stop service between Ottawa and Charlottetown, with flights initially available until the last week of October. Introductory roundtrip fares start at $297, including taxes and fees. Connections are currently available from Charlottetown to Thunder Bay, Toronto City, and Toronto Pearson.

“Historic Charlottetown is one of the few provincial capitals with limited air capacity to Ottawa-Gatineau. Porter Airlines’ continued growth from YOW will change that as travellers from both areas will have more non-stop options from the coast to the Capital and vice versa. YYG passengers will likely enjoy connecting at YOW, including for Porter’s excellent downtown Toronto access,” said Mark Laroche, president and CEO, Ottawa International Airport Authority.

“We are thrilled to welcome Porter Airlines to YYG and Prince Edward Island,” said Doug Newson, CEO, Charlottetown Airport Authority. “Islanders and visitors alike have been requesting Porter for many years, so it is extremely rewarding for us to be able to announce this today. This new non-stop service to Ottawa will not only provide convenient access to the nation’s capital, but will also allow travellers the opportunity to connect to Porter’s expanding network at Ottawa International Airport.”

Porter has more than doubled the number of regional destinations served from Ottawa in recent months. The introduction of Charlottetown is in addition to three new routes connecting Ottawa with Boston, New York-Newark and Thunder Bay beginning this spring. Porter also currently flies to Fredericton, Halifax, Moncton and Toronto City with its Dash 8-400 fleet. A Toronto Pearson-Ottawa route served with state-of-the-art Embraer E195-E2 aircraft started earlier in February. Detailed schedules can be found on www.flyporter.com.

About Porter