Skift Global Forum 2016: Air Canada Talks International Route Expansion, Premium Economy & What Pax Want
Share
APEX Insight: During a Q&A session with APEX CEO Joe Leader at Skift Global Forum 2016, Air Canada’s president of Passenger Airlines, Benjamin Smith, spoke about the growth of the carrier’s global network, the development of its international premium economy service and its plans for financial growth.
Air Canada has dramatically expanded its international route network over the past decade, seeking to position Toronto, Vancouver and Montreal as ideal connecting hubs for US passengers traveling overseas. The airline currently flies to 64 airports in Canada, 54 in the United States and 87 across the rest of the world, including six new international destinations announced today.
“Our geographical location means that we’re perfectly situated to connect passengers on routes from the US to Asia,” said Benjamin Smith, president of Passenger Airlines at Air Canada, during a Q&A session with APEX CEO Joe Leader at Skift Global Forum in New York City yesterday. “Canada sits in a very lucrative position to capture global air traffic flow. Many routes from the Americas naturally fly over Canada.” In addition to geographic location, Smith cited elapsed time, product offering and price as factors contributing toward Air Canada’s competitive advantage in connecting passengers flying from the US to Europe and Asia.
“Canada sits in a very lucrative position to capture global air traffic flow.” – Benjamin Smith, Air Canada
As Air Canada builds its global network, it is simultaneously growing its international premium economy service. “We decided four years ago that we would invest in a true premium economy cabin, which would look like a domestic US first-class cabin,” said Smith. “We’ve had such strong success that we’ve accelerated the rollout so that by early next year, premium economy will be on all [aircraft] of our international fleet.”
Smith also divulged that, according to surveys conducted by the airline, the most important element of the passenger experience for Air Canada’s business-class passengers is consistency. “Our customers choose our business cabin because they don’t like surprises; they like to have as much control as they can,” he explained. “Other factors include sleep, lighting, noise in the cabin, flexible dining times, cleanliness and friendliness of crew.”
“Our customers choose our business cabin because they don’t like surprises; they like to have as much control as they can.” – Benjamin Smith, Air Canada
Air Canada has also been growing financially and Smith is optimistic about the future: “Last year was our best year financially in the history of Air Canada and we’re hoping to top that this year.” How does the airline plan to do that? “The goal is to exceed customers’ expectations,” said Smith. “If you’re successful in doing that then you’re able to get the price points you’re looking for because you’ve delivered what the client is expecting.”