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Air Canada shakes out its network with high profile long-haul service and small domestic routes

Analysis

Air Canada is to put the mission of the Boeing 787-9 to the test in late 2015 with the planned launch of new service to Dubai and the resumption of non-stop service to Delhi. International expansion is a pillar of the airline's growth strategy as it seeks to leverage is still-leading position as Canada's largest international airline.

At the same time Air Canada is making domestic adjustments, transferring some routes to its low-cost subsidiary rouge, and entering smaller markets in western Canada.

The long-haul international flights will not be a huge contributor to Air Canada's planned system-wide capacity increase of 9% to 10% in 2015, which is higher than its North American peers. But Air Canada believes those targets are reasonable as it has not grown in line with available international opportunities during the last decade.

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