Air Canada maps North American expansion with new Airbus A220s
Air Canada plans to lay new contrails across North America with the 45 Airbus A220s joining its fleet over the next two years.
The Star Alliance carrier will open its first new routes with the jet in May — between Montreal (YUL) and Seattle (SEA), and between Toronto Pearson (YYZ) and San Jose, California (SJC). But after that, the continent is Air Canada's oyster. The A220 has comparable or superior economics to larger models that allows it to open longer routes with lower demand.
"This aircraft opens up a huge possibility of new routes," Air Canada vice president of network planning Mark Galardo told TPG at the unveiling of the airline's first A220 at the Montreal airport Wednesday. "We're very excited about what the possibilities are."
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Galardo was mum on exactly what routes Air Canada could add. However, the carrier's first two additions for the A220 were mentioned on a list of possibilities it first released a year ago. Other potential new routes on that list include: Calgary (YYC) to Washington Dulles (IAD); Toronto Pearson to Monterey, Mexico (MTY); and Vancouver (YVR) to Halifax (YHZ) or Washington.
Air Canada has already announced plans to launch another route from the list — between Calgary and Boston (BOS) — in June, only with an Airbus A319 rather than an A220.
The A220 will replace the E190 in Air Canada's fleet, but travelers will not necessarily see A220s push out E190s on a route-for-route basis, said Galardo. Instead, E190 flights will shift to other aircraft while Air Canada puts the A220 to work in expanding the airline's network.
In terms of economics, the new jet with 137 seats and a 3,768 mile range can carry 41% more passengers two-thirds further than the E190 at 13% lower costs per seat, according to Air Canada.
Related: First Look: Onboard Air Canada's first Airbus A220
Transborder dominance
Air Canada's A220-fueled North American network expansion is part of an effort to bulwark its position as the dominant carrier between Canada and the U.S. This is a critical market for the airline, and one that Galardo described as he most "lucrative international market in the world."
The carrier had a nearly 45% share of the 31.7 million passengers that flew between the two countries during the year ending in June 2019, according to the latest U.S. Bureau of Transportation Statistics data via Cirium.
WestJet and others are ratcheting up transborder competition for Air Canada. Calgary-based WestJet, already the second largest in the market, has proposed a transborder partnership with Delta Air Lines that would allow the two airlines to jointly control a sizable 28% share of traffic between Canada and the U.S, the BTS data shows.
Air Canada, for its part, may one day renew its aim for a similar partnership with United Airlines. Asked if a joint venture between the Star members is on the table, Galardo said "never say never," but added that any further discussion was "premature."
"The real business for us is Canadians and Americans going north and south of the border," he said of Air Canada's transborder growth. "We want to make sure we're the top player in that segment."
And from Air Canada's perspective, the A220 appears poised to enable that.
Related: Air Canada takes North America's first Airbus A220-300
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
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- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.