DDC reaches commercial agreement with Air Canada
In February 2015, Tony Di Benedetto, CEO of Drone Delivery Canada, unveils a model of the company’s new Condor drone, expected to have a payload capacity of 180 kilograms (400 pounds) and a potential travel distance of up to 200 kilometres.
Drone Delivery Canada Corp. announced that it has entered into an agreement with Air Canada, 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. The initial term of the agreement is for 10 years from the effective date of May 29, 2019.
Pursuant to the terms of the Agreement and subject to DDC obtaining required regulatory approvals, DDC states it 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,” said 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.
Benedetto continues to explain the agreement with Air Canada supports DDC’s efforts to establish itself as Canada’s first national drone cargo solution. He also notes DDC plans to pursue 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,” said Tim Strauss, VP, Cargo, Air Canada, who is also an independent member of the advisory board of DDC. “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.”
DDC explains the routes to which the agreement applies will be agreed upon by the parties, again subject to DDC obtaining required regulatory approvals. Once routes are approved by the applicable regulatory authorities, DDC explains the particular terms of the routes, including payment terms to drone, will be determined in the context of each applicable route.
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