AIR CANADA

airline established by act of the Canadian Parliament in the Trans-Canada Air Lines Act of April 10, 1937. Known for almost 28 years as Trans-Canada Air Lines, it assumed its current name on Jan. 1, 1965. Air Canada's headquarters are in Montreal. Initially flying a scheduled route between Vancouver, B.C., and Seattle, Wash., the airline so expanded its services through its own routes and through connectors that by the 1990s it was reaching more than 90 communities throughout Canada and the United States, as well as points in Bermuda, the Caribbean, the United Kingdom, and continental Europe. In 1966 it became the first North American airline to serve Moscow. As a crown corporation the company enjoyed a monopoly on Canadian domestic air transport from 1937 to 1959; in the 1960s and '70s, however, restrictions were gradually lifted, and other Canadian carriers began to compete for both domestic and international routes. To further deregulate, to acquire capital for upgrading its fleet, and to better operate in a competitive market, the company was partially privatized in 1988 by the sale of 45 percent of its shares to its employees and the general public.