Editing Air Canada (section)

===Merger and reorganization (2000s)===
[[File:Canadian Airlines Boeing 737-275; C-GEPW@MIA, February 2000 CYG (6351375046).jpg|thumb|A [[Boeing 737-275]] with a hybrid Air Canada-[[Canadian Airlines International]] livery. The latter airline was acquired by Air Canada in 2001.]]
In January 2000, Air Canada acquired Canada's second-largest air carrier, [[Canadian Airlines International]], merging the latter's operations, becoming the world's twelfth-largest airline in the first decade of the 21st century.<ref name="CBC timeline"/> As Air Canada gained access to its former rival's financial statements, officials learned that the carrier was in worse financial shape than was previously believed.<ref name=AChist/> An expedited merger strategy was pursued, but in summer 2000 integration efforts led to flight delays, luggage problems and other frustrations.<ref name=AChist/> Service improved following Air Canada officials' pledge to do so by January 2001.<ref name=AChist/> The airline was confronted by the global aviation market downturn and increased competition, posting back-to-back losses in 2001 and 2002.<ref name=AChist/>

====Bankruptcy and restructuring====
As Air Canada had employed a scorched earth policy to prevent the Onex proposed acquisition as one of its lines of defense, it had burdened itself with onerous contracts with almost all of its suppliers. As a result, on 1 April 2003, Air Canada filed for protection under the [[Companies' Creditors Arrangement Act]]; it emerged from this protection on 30 September 2004, 18 months later. During the period of bankruptcy protection, the company was subject to two competing bids from [[Cerberus Capital Management]] and [[Victor Li]]. The Cerberus bid would have seen former Prime Minister [[Brian Mulroney]] installed as chairman, being recruited by Cerberus' international advisory board chair [[Dan Quayle]], the former vice-president of the United States. Cerberus was rejected because it had a reputation of changing existing employee pension agreements, a move strongly opposed by the [[CAW National Council 4000|CAW]]. At first, Air Canada selected Victor Li's ''Trinity Time Investments'', which initially asked for a board veto and the chairmanship in return for investing $650&nbsp;million in the airline. Li, who holds dual citizenship from Canada and Hong Kong, later demanded changes to the pension plan (which was not in his original takeover bid), but since the unions refused to budge, the bid was withdrawn.<ref>{{cite news |url=https://www.usatoday.com/travel/news/2004-04-05-air-canada_x.htm |title=Air Canada unions dig in, rescue deal seen at risk |publisher=Usatoday.com |date=5 April 2004 |access-date=21 February 2011 |archive-date=27 April 2011 |archive-url=https://web.archive.org/web/20110427121930/http://www.usatoday.com/travel/news/2004-04-05-air-canada_x.htm |url-status=live }}</ref>

Finally, [[Deutsche Bank]] unveiled an $850&nbsp;million financing package for Air Canada, if it would cut $200&nbsp;million in annual costs in addition to the $1.1&nbsp;billion that the unions agreed on in 2003. The offer was accepted after last-minute talks between CEO [[Robert Milton]] and CAW president [[Buzz Hargrove]] resulted in union concessions.<ref name="CBC timeline"/><ref>{{cite web|url=https://www.cbc.ca/news/business/air-canada-faces-deadline-on-deutsche-bank-deal-1.492087|title=Air Canada faces deadline on Deutsche Bank deal|date=14 May 2004|publisher=CBC News|access-date=28 November 2021|archive-date=28 November 2021|archive-url=https://web.archive.org/web/20211128065553/https://www.cbc.ca/news/business/air-canada-faces-deadline-on-deutsche-bank-deal-1.492087|url-status=live}}</ref><ref name=CanEncyc>{{cite encyclopedia | url=https://www.thecanadianencyclopedia.ca/en/article/air-canada | title=Air Canada | encyclopedia=[[The Canadian Encyclopedia]] | access-date=28 November 2021 | first=Sasha | last=Yusufali | archive-date=28 November 2021 | archive-url=https://web.archive.org/web/20211128065551/https://www.thecanadianencyclopedia.ca/en/article/air-canada | url-status=live }}</ref>

ACE Aviation Holdings became the new parent company under which the reorganized Air Canada was held.<ref>{{cite web |url=http://www.aceaviation.com/en/about/index.html |title=ACE Aviation |publisher=ACE Aviation |date=31 January 2011 |access-date=21 February 2011 |archive-date=7 July 2011 |archive-url=https://web.archive.org/web/20110707080351/http://www.aceaviation.com/en/about/index.html |url-status=live }}</ref>

In October 2004, Canadian singer [[Celine Dion]] became the face of Air Canada, hoping to relaunch the airline and draw in a more international market after 18 months of bankruptcy protection.<ref name="ACnewlook"/> She recorded her single, "[[You and I (Celine Dion song)|You and I]]", which subsequently appeared in several Air Canada commercials.<ref>{{cite web|author=Renée Alexander |url=http://www.businessweek.com/innovate/content/may2006/id20060510_847981.htm?chan=innovation_branding_top+stories |archive-url=https://web.archive.org/web/20060614200720/http://www.businessweek.com/innovate/content/may2006/id20060510_847981.htm?chan=innovation_branding_top+stories |url-status=dead |archive-date=14 June 2006 |title=WestJet Airlines – High Times |publisher=Businessweek.com |date=10 May 2006 |access-date=21 February 2011}}</ref>

====Fleet modernization====
[[File:C-GHPV Air Canada B788 FRA (33882313988).jpg|thumb|left|An Air Canada [[Boeing 787-8]] in the 'Frosted Leaf' livery at [[Frankfurt Airport]]. In 2005, the airline ordered a number of Boeing 787-8s.]]
On 31 October 2004, the last Air Canada [[Boeing 747]] flight landed in [[Toronto]] from [[Frankfurt]] as AC873, ending 33 years of 747 service with the airline. The [[Boeing 747-400]] fleet was replaced by the [[Airbus A340]] fleet.<ref>[http://www.aircanada.com/en/onair/december/aviation.html Aviation giant retires – onAir, December 2004, aircanada.com] {{webarchive|url=https://web.archive.org/web/20160204072114/http://www.aircanada.com/en/onair/december/aviation.html |date=4 February 2016 }} Date accessed: 6 November 2008</ref> On 19 October 2004, Air Canada unveiled a new aircraft colour scheme and uniforms. A Boeing 767-300ER was painted in the new silver-blue colour, and the dark green/almost black tail was replaced with a new version of the [[maple]] leaf known as the 'Frosted Leaf'.<ref name="ACnewlook">[http://www.prnewswire.com/news-releases/air-canada-unveils-new-look-and-leading-edge-in-flight-enhancements-canadian-superstar-celine-dion-joins-employees-to-launch-new-era-for-nations-flag-carrier-74402422.html Air Canada unveils New Look and Leading Edge In-Flight Enhancements, Canadian Superstar Celine Dion joins Employees to Launch New era for Nation's Flag Carrier, prnewswire.com, 19 October 2004] {{Webarchive|url=https://web.archive.org/web/20141107124535/http://www.prnewswire.com/news-releases/air-canada-unveils-new-look-and-leading-edge-in-flight-enhancements-canadian-superstar-celine-dion-joins-employees-to-launch-new-era-for-nations-flag-carrier-74402422.html |date=7 November 2014 }} Date accessed: 23 May 2014</ref>

On 9 November 2005, Air Canada agreed to renew its widebody fleet by purchasing 16 [[Boeing 777]]s (10 -300ERs, 6 -200LRs), and 14 [[Boeing 787 Dreamliner|Boeing 787-8]]s. It placed options on 18 Boeing 777s and 46 Boeing 787-8s and -9s.<ref>[http://www.sedar.com/GetFile.do?lang=EN&docClass=13&issuerNo=00020954&fileName=/csfsprod/data63/filings/00880502/00000001/x%3A%5CSedar%5C2006%5CACEAviation%5C18jan%5CAIRCANADA.pdf Download SEDAR Filings - 4 November 2005] {{Webarchive|url=https://web.archive.org/web/20150403122734/http://www.sedar.com/GetFile.do?lang=EN&docClass=13&issuerNo=00020954&fileName=/csfsprod/data63/filings/00880502/00000001/x%3A%5CSedar%5C2006%5CACEAviation%5C18jan%5CAIRCANADA.pdf |date=3 April 2015 }} Date accessed: 20 October 2008</ref> Deliveries of the 777s began in March 2007 and deliveries of the 787s began in May 2014.<ref name="globalaviationexpress.blogspot.com">{{Cite web |url=http://globalaviationexpress.blogspot.com/2014/05/boeing-delivers-air-canadas-first-787.html |title=Boeing Delivers Air Canada's First 787 Dreamliner |access-date=16 May 2014 |date=16 May 2016 |last=Gigacz |first=Oliver |work=Global Aviation Express |archive-date=17 May 2014 |archive-url=https://web.archive.org/web/20140517121702/http://globalaviationexpress.blogspot.com/2014/05/boeing-delivers-air-canadas-first-787.html |url-status=live }}</ref>

On 24 April 2007, Air Canada exercised half of its options for the [[Boeing 787 Dreamliner]]. The firm order for the Dreamliners then stood at 37 plus 23 options, for a total of 60. The airline also cancelled orders for two Boeing 777Fs. In November 2007, Air Canada leased an additional [[Boeing 777|Boeing 777-300ER]].<ref name="Boeing25Apr2008">{{cite news |date=25 April 2007 |title=Boeing, Air Canada Announce 23 Additional 787 Dreamliners |url=https://boeing.mediaroom.com/2007-04-25-Boeing-Air-Canada-Announce-23-Additional-787-Dreamliners |url-status=live |archive-url=https://web.archive.org/web/20100119015327/http://boeing.com/news/releases/2007/q2/070425c_nr.html |archive-date=19 January 2010 |access-date=January 31, 2024 |work=Boeing}}</ref><ref name="Air Canada - Our Fleet">''Air Canada – Our Fleet'' 24 August 2009 [http://www.aircanada.com/en/about/fleet/ aircanada.com] {{Webarchive|url=https://web.archive.org/web/20161015083113/http://www.aircanada.com/en/about/fleet/ |date=15 October 2016 }} Date accessed: 24 August 2009</ref>

====Project XM====
Started in July 2006 and since completed, ''Project XM: Extreme Makeover'', was a $300&nbsp;million aircraft interior replacement project to install new cabins on all aircraft. New aircraft such as the Boeing 777 were delivered with the new cabins factory installed.<ref>{{Cite web |last=Jang |first=Brent |date=December 26, 2006 |title=Air Canada embarks on Extreme Makeover |url=https://www.theglobeandmail.com/report-on-business/air-canada-embarks-on-extreme-makeover/article4113859/ |url-status=live |archive-url=https://web.archive.org/web/20131014004004/http://www.globelink.ca/industry/travel/article.asp?id=22 |archive-date=14 October 2013 |access-date=January 31, 2024 |website=[[The Globe and Mail]]}}</ref>
New cabin features included:<ref name="fleet">[http://www.aircanada.com/en/about/fleet/ Air Canada/Air Canada Jazz fleet] {{Webarchive|url=https://web.archive.org/web/20161015083113/http://www.aircanada.com/en/about/fleet/ |date=15 October 2016 }} Date accessed: 18 February 2009</ref><ref name="EconomyNA">[http://www.aircanada.com/en/travelinfo/onboard/comfort_naecono.html Cabin Comfort – Economy Class – North America] {{Webarchive|url=https://web.archive.org/web/20081217094940/http://www.aircanada.com/en/travelinfo/onboard/comfort_naecono.html |date=17 December 2008 }} Date accessed: 4 December 2013</ref><ref name="EconomyInt">[http://www.aircanada.com/en/travelinfo/onboard/comfort_intecono.html Cabin Comfort – Economy Class – International] {{Webarchive|url=https://web.archive.org/web/20080913044007/http://www.aircanada.com/en/travelinfo/onboard/comfort_intecono.html |date=13 September 2008 }} Date accessed: 4 December 2013</ref><ref name="ExecNA">[http://www.aircanada.com/en/travelinfo/onboard/comfort_naexec.html Cabin Comfort – Business Class – North America] {{Webarchive|url=https://web.archive.org/web/20081217094946/http://www.aircanada.com/en/travelinfo/onboard/comfort_naexec.html |date=17 December 2008 }} Date accessed: 4 December 2013</ref><ref name="ExecFirst">[http://www.aircanada.com/en/travelinfo/onboard/comfort_intexec.html Cabin Comfort – International Business Class] {{Webarchive|url=https://web.archive.org/web/20081104054348/http://www.aircanada.com/en/travelinfo/onboard/comfort_intexec.html |date=4 November 2008 }} Date accessed: 4 December 2013</ref>
* In Executive First, new horizontal fully flat Executive First Suites (on Boeing 767s, Boeing 777s, and Airbus A330s).
* New seats in all classes on all aircraft, with new entertainment options.
* Personal AVOD ({{convert|8.9|in|disp=or|abbr=on}} touchscreen LCD) in Economy class (domestic and international) and Executive Class (domestic).
* Larger AVOD ({{convert|12|in|disp=or|abbr=on}} touchscreen LCD) equipped with noise-cancelling [[Sennheiser]] headphones available in Executive First Suites.
* Interactive games at all seats in Executive and Economy; [[XM Radio Canada]] available at every seat.
* USB ports to recharge electronic devices and for game controllers at all seats; 120 VAC plugs in most seats; 
** In Economy (2 per triple) (1 per double) (3 per quad). 
** In First Class/Executive (All seats)

====Late 2000s financial difficulties====
High fuel prices and the [[Great Recession]] caused Air Canada significant financial difficulties in the late 2000s. In June 2008, the airline announced it would lay off over 2,000 employees and cut its capacity by 7 percent by the first quarter of 2009.<ref>{{cite news|date=17 June 2008|title=Air Canada cutting 2,000 jobs, trimming capacity|language=en-CA|work=[[CBC News]]|url=https://www.cbc.ca/news/business/air-canada-cutting-2-000-jobs-trimming-capacity-1.699586|access-date=1 December 2020|archive-date=1 March 2021|archive-url=https://web.archive.org/web/20210301233013/https://www.cbc.ca/news/business/air-canada-cutting-2-000-jobs-trimming-capacity-1.699586|url-status=live}}</ref> President and CEO [[Montie Brewer]] expressed confidence that the airline would weather the economic downturn.<ref>{{cite news|last=Deveau|first=Scott|date=24 November 2008|title=Brewer handling Air Canada obstacles; CEO confident carrier has troubles in hand|work=[[Financial Post]]|publisher=[[Postmedia]]|url=https://www.proquest.com/docview/330796242|access-date=1 December 2020|id={{ProQuest|330796242}}|via=[[ProQuest]]|archive-date=2 April 2022|archive-url=https://web.archive.org/web/20220402015027/https://www.proquest.com/docview/330796242|url-status=live}}</ref>
[[File:Calin Rovinescu 2015.jpg|thumb|[[Calin Rovinescu]] in 2015. Rovinescu served as the CEO of Air Canada from 2009 to 2021.]]
Brewer resigned on 30 March 2009 and was replaced by [[Calin Rovinescu]] on 1 April.<ref>{{cite news|last1=Jang|first1=Brent|title=Brewer resigns as Air Canada Chief|url=https://www.theglobeandmail.com/globe-investor/brewer-resigns-as-air-canada-chief/article1156460/|access-date=25 January 2015|newspaper=Globe and Mail|date=31 March 2009|archive-date=3 April 2015|archive-url=https://web.archive.org/web/20150403113933/http://www.theglobeandmail.com/globe-investor/brewer-resigns-as-air-canada-chief/article1156460/|url-status=live}}</ref> Rovinescu became the first Canadian President since [[Claude Taylor (transportation executive)|Claude Taylor]] in 1992. Rovinescu, reported to be "an enforcer", was Air Canada's chief restructuring officer during its 2003 bankruptcy; he resigned that year after unions rejected his demands.<ref>{{cite news |first= |date=31 March 2009 |title=Air Canada drafts an enforcer |url=https://www.theglobeandmail.com/report-on-business/streetwise/air-canada-drafts-an-enforcer/article782633/ |url-status=live |archive-url=https://web.archive.org/web/20090403195305/http://business.theglobeandmail.com/servlet/story/RTGAM.20090331.WBstreetwise20090331084002/WBStory/WBstreetwise |archive-date=3 April 2009 |access-date=January 31, 2024 |work=[[The Globe and Mail]] |publisher=}}</ref>

Air Canada's contracts with four unions also expired around this time. The airline stated that its $2.85&nbsp;billion pension shortfall (which grew from $1.2&nbsp;billion in 2007) was a "liquidity risk" in its first-quarter report, and it required new financing and pension "relief" to conserve cash for 2010 operations. The company was obligated to pay $650&nbsp;million into the pension fund but it suffered a 2009 Q1 loss of $400&nbsp;million, so it requested a moratorium on its pension payments in 2009. The unions had insisted on financial guarantees before agreeing on a deal. Rejecting union calls for a direct bailout of the company, federal finance minister [[Jim Flaherty]] instead appointed retired judge James Farley to mediate pension issues between the company, the unions representing its employees, and retirees. Farley had presided over the company's 2003 bankruptcy.<ref>{{cite news |date=4 June 2009 |title=Flaherty appoints ex-judge to mediate Air Canada pension issues |url=https://www.cbc.ca/news/business/flaherty-appoints-ex-judge-to-mediate-air-canada-pension-issues-1.823961 |url-status=live |archive-url=https://web.archive.org/web/20090607095926/http://www.cbc.ca/canada/story/2009/06/04/air-canada-pension.html |archive-date=7 June 2009 |access-date=January 31, 2024 |work=[[CBC News]] |publisher=}}</ref>

In July 2009, Air Canada requested and received CA$1&nbsp;billion in financial aid from a consortium of entities, including the Canadian government, ACE, and associate company Aeroplan. The Centre for Aviation reported that only CA$600&nbsp;million was actually loaned to Air Canada; the rest of the money was from sale-leaseback accounting and "aggregating an array of biscuit-tin savings".<ref>{{Cite web|url=https://centreforaviation.com/analysis/reports/air-canada-bailout-buys-time---but-canada-inc-sells-out-to-forces-of-protectionism-8958|title=Air Canada bailout buys time - but Canada Inc sells out to forces of protectionism|access-date=1 April 2020|archive-date=1 June 2020|archive-url=https://web.archive.org/web/20200601023142/https://centreforaviation.com/analysis/reports/air-canada-bailout-buys-time---but-canada-inc-sells-out-to-forces-of-protectionism-8958|url-status=live}}</ref>