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Air Canada seizes on Asian strength while laying the groundwork for key connections in Istanbul

Analysis

Air Canada is banking on continued strength in its Pacific network into 2013 as it aims to expand its reach into Asia during the summer high season next year through new service to Seoul from its Toronto hub and an expansion of offerings to Beijing and Tokyo Narita. At the same time the carrier is introducing flights between Toronto and Istanbul, Turkey as a means to tap the strength of fellow Star Alliance member Turkish Airlines' network across central Asia, Africa and the Middle East.

The new flights to Istanbul could be Air Canada's answer to the growing partnerships that airlines participating in other large global alliances are forging with Gulf carriers, something Air Canada and its major Star partner Lufthansa have so far refused to explore as both carriers have been the most critical of the rapid expansion of Middle Eastern airlines during the last few years.

The moves by Air Canada into Asia during 2H2013 follow the carrier's strong performance in its existing markets in the region throughout 2012. Presently, Air Canada serves five destinations in the Asia Pacific region - Beijing (from Toronto and Vancouver), Shanghai (from Toronto and Vancouver), Hong Kong (from Toronto and Vancouver), Tokyo Narita (from Vancouver and Toronto) and Seoul (from Vancouver). Asia currently accounts for 10% of Air Canada's international seats on offer and 26% of its international ASKs.

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