Published on 2 May 2016

IBM helps us manage our business case quite effectively with predictable and stable cash outflows.

Anton Vidgen, Senior Director, Customer and Technology, Air Canada Rouge

Customer
Air Canada Rouge

Industry
Travel & Transportation

Deployment country
Canada

Overview

Established in 2013 and based in Toronto, Canada, Air Canada Rouge is a wholly owned subsidiary of Air Canada. With a fleet of more than 35 airplanes, Air Canada Rouge travels to 60 popular destinations in Canada, the US, the Caribbean, Mexico, South America, Europe, Asia and Africa.

Business need
Air Canada Rouge offers customers iPads for use while in flight. But even as the popularity of the iPads grew among passengers, the devices the airline had purchased were becoming obsolete.

Solution
Air Canada Rouge teamed with IBM Global Financing, which bought back the older iPads and facilitated the lease of new devices with a customized 3-year, fixed-term contract. As the airline’s fleet has grown, the company has used the financing contract to obtain more iPads with ease so that it can continue offering this benefit on all of its flights.

Benefits
Air Canada Rouge chose to lease its iPads on a 3-year term that also shifts the iPads from a capital expense, which can depreciate quickly, to an operational expense, which allows for easier budgeting and creates a clear timeline for future upgrades.

Components

IBM products and services that were used in this case study.

Solution
IGF: IT Buyback & Disposal Services (Asset Recovery Solutions), IGF: IT Financing - OEM HW, IGF: Used Equipment, T&T: Asset Management and Maintenance, T&T: Customer Loyalty, Sales and Service, T&T: Operations Planning and Optimization

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