History: Air Canada's predecessor, Trans-Canada Airlines, was created by federal legislation as a subsidiary of Canadian National Railway on 11 April 1936. The first passenger flights flew on 1 September 1937, with an Electra carrying two passengers and mail from Vancouver to Seattle. By January 1940, the airline had grown to about 500 employees. By 1964, TCA had grown to become Canada's national airline and, in 1964, the name changed from Trans-Canada Airlines to Air Canada.
During the 1970s government regulations ensured Air Canada's dominance over domestic regional carriers and rival CP Air. The carrier's fleet expansion saw the acquisition of Boeing 727, Boeing 747, and Lockheed Tristar jetliners. In 1988 Air Canada was privatised, and 43% of shares are sold on the public market. By this time, long-haul rival CP Air had become Canadian Airlines International following their acquisition by Pacific Western Airlines. On 7 December 1987, Air Canada became the first airline in the world with a fleet-wide non-smoking policy and in 1989 became completely privatised. In the early 1990s, Air Canada encountered financial difficulties as the airline industry slumped in the aftermath of the Persian Gulf War. By 1994, Air Canada had returned to profitability. In 1995, taking advantage of a new U.S.-Canada open skies agreement, Air Canada added 30 new trans-border routes.
In May 1997, Air Canada became a founding member of the Star Alliance, In January 2001, Air Canada acquired Canada's second largest air carrier, Canadian Airlines, merging the latter's operations, becoming the world's twelfth-largest airline.
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. On 19 October 2005 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'. On 24 April 2007, Air Canada exercised half of their options for the Boeing 787 Dreamliner. Also Air Canada ordered and took delivery of the 18 Boeing 777s on order. Air Canada has also taken delivery of 15 Embraer 175s and 45 Embraer 190s. In 2010 Air Canada created a low cost division, Air Canada Rouge, which the parent company would transfer Airbus A319 and Boeing 767-300ER.
Now a days, Air Canada is Canada's largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S and in the international market to and from Canada.Together with its Air Canada Express regional partners and leisure carrier,Air Canada Rouge, Air Canada serves over 38 million passengers annually and provides direct passenger service to more than 190 destinations on five continents.