Air Canadian Hubs Essay

Sixth freedom of air is the foundation of Air Canada’s strategy to become a successful global carrier. This strategy involves encouraging mainly Americans flying overseas to connect internationally through Canadian hubs, using Air Canada, rather than through U.S. hubs.
Air Canada is focused on attracting most share of sixth freedom traffic of United States to their three major Canadian hubs, that is, Toronto, Vancouver and Montreal. The company targets to change these hubs into the larger transfer points for global travellers crossing Canada. This strategy is generating huge revenues for the company. Air Canada is becoming, the most powerful and effective airline in the global airline market.
Blue sky policy of Canada includes an open skies agreement. It is an air transport agreement between Canada and United States. The agreement allows any airline of Canada and any airline of the United States to fly between any point in Canada and any point in the United States. Open skies agreement is another form of sixth freedom of air. Air Canada is using this agreement in a very smart way to earn profits.

They are telling their customers that they would like Toronto, Vancouver or Montreal airports way more than Chicago or New York airports. Air Canada hubs are providing easy transit facilities to their sixth freedom travellers by deducting, the need to reclaim bags, and allowing those customers to proceed directly to US customs. It also serves several Asian destinations from its Toronto hub, including Beijing, Shanghai, Hong Kong and Tokyo Haneda. Air Canada also launched non-stop flights like Toronto to Delhi, Toronto to Mumbai and vice-versa (known as long-haul flights). Airline is also expanding its roots to almost six new small cities in states. The companies goal is to attract 1.5% US share which can add up to $600-$700 million in the incremental revenue. (Keenan,