Opportunities and Challenges for Atlantic Canada Airports

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Opportunities and Challenges for Atlantic Canada
Airports

• March 22, 2006

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Air Canada in Atlantic Canada

• Air Canada and Air Canada Jazz serves 12 markets
  in Atlantic Canada
• More than 1300 weekly flights to and from
  Atlantic Canada for summer 2006
• 9 increase in capacity compared to summer 2005
• 107 additional weekly flights a week compared to
  summer 2005

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Air Canadas Business Strategy

• Innovative revenue model
• Capitalize on redesigned network

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Customer Driven Revenue Model

• Restore Customer Trust
• What is being sold
• How one wants to travel from A to B
• Product very differentiated
• Tailored to individual choice
• Clear link between price and value
• Transparency and trust are guiding principles

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North America Network Strategies

• Enhancements to ACs North American network with
  the introduction of the CRJ705s, and EMB175/190
• North American network back into growth mode
• Right size North American fleet allocation
• New markets
• New routes
• Increased frequencies on key routes
• Introduce new non-stop service in hub and point
  to point markets
• Improved product
• Longer haul CRJ markets moving to next-generation
  jets, featuring J/Y service
• Dash turboprop to jet service on all longer haul
  commuter routes

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Domestic Fleet, Network and Product Opportunities
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Expanded Route Opportunities
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Airline Requirements for New Capacity

• Incremental value
• New market opportunities
• Feed for the network
• Optimizing the fleet
• Evaluating trade-offs
• Maintaining high utilization
• Year round markets

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Challenges for Atlantic Canada Airports

• Competing with airports and communities across
  North America
• Overlapping catchment areas/fragmented markets
• Mature markets
• Seasonal markets
• Risk sharing

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Summary

• Changing our business model
• Capitalizing on our redesigned network
• Competing with communities across North America
  for resources
• Incremental traffic