Inside Logistics

Air Canada Cargo to market for Drone Delivery Canada

Air Canada Cargo will act as a sales agent of DDC


June 5, 2019
by

MONTREAL – Air Canada has entered into a sales agency agreement with Drone Delivery Canada Corp. (DDC). Air Canada Cargo will market DDC’s drone delivery services in Canada, giving the logistics community access to commercial drone deliveries.

Under the terms of the agreement, Air Canada Cargo will act as a sales agent of DDC for the purpose of marketing and pursuing sales of DDC’s drone delivery services across Canada, on those routes for which DDC has sought and received regulatory approval.

DDC will build and operate up to 150,000 drone delivery routes in Canada. These routes will include timetables, flight schedules, payload capacities, type of drones to be deployed, and payment terms. DDC’s services will be marketed as a premium offering, and Air Canada Cargo has agreed that it shall not use or engage with any other drone delivery service providers.

DDC will benefit from Air Canada Cargo’s expertise and ability to develop, promote and sell DDC services through Air Canada Cargo’s industry leading marketing and sales technology channels in Canada.

“This agreement greatly accelerates our commercial roll out in Canada“, commented Tony Di Benedetto CEO of DDC.

“Our drone delivery services will be extensively marketed as we work to establish operations across the country leveraging Air Canada Cargo’s brand presence and their established sales network and marketing reach. DDC will benefit from Air Canada’s Cargo’s expertise and ability to promote and sell DDC services through Air Canada Cargo’s channels in Canada. Next, DDC hopes to pursue even larger markets in the United States and Europe.”

“Air Canada is pleased to partner with Drone Delivery Canada, a leading player in today’s emerging drone industry,” said Tim Strauss, vice-president of cargo at Air Canada and an independent member of the advisory board of DDC.

“We believe drone technology has the potential to offer the cargo community cost-effective solutions to complex issues related to supply chain distribution in non-traditional markets, including remote communities in Canada.”

The initial term of the Agreement is ten years from the effective date of May 29, 2019. The routes to which the Agreement applies shall be agreed by the parties and shall be subject to DDC obtaining required regulatory approvals.