Drone Delivery Canada (DDC) has announced that it has entered into an agreement with Air Canada effective May 29, 2019 whereby Air Canada Cargo will market and sell DDC’s drone delivery services in Canada using Air Canada Cargo’s marketing and sales platforms and resources.
Pursuant to the terms of the agreement and subject to DDC obtaining required regulatory approvals, 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.
Air Canada Cargo has agreed to sell, market and promote DDC’s drone delivery services on the agreed routes, leveraging Air Canada Cargo’s expertise in the cargo world, brand presence and sales network.
“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 industry leading marketing and sales technology channels in Canada, which will support our efforts to establish DDC as Canada’s first national drone cargo solution. 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. 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. It is another way Air Canada Cargo is innovating and engaging with new technologies, such as artificial intelligence and digital technologies, which are transforming the cargo landscape,” said Tim Strauss, vice president, Cargo, at Air Canada.
Mr. Strauss is also an independent member of the advisory board of DDC.
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. Once routes are approved by the applicable regulatory authorities, the particular terms of the routes, including payment terms to Drone, will be determined in the context of each applicable route and disclosed in subsequent press releases.