Air Canada embarks on Extreme Makeover

This from Brent Jang, Transportation Reporter from the Globe and Mail:

Air Canada will unveil new plane interiors in 2007 as it seeks to gain a competitive edge by rolling out a revitalization program named Project XM: Extreme Makeover.

The stars of the $300-million project are touch-screen panels on seatbacks. Passengers will use their fingers to press options displayed on the screens, then sit back and enjoy beefed-up video and audio entertainment, said Montie Brewer, Air Canada's president and chief executive officer.

"Every seat on every aircraft will be replaced," Mr. Brewer said in a year-end interview.

Air Canada's offering includes on-demand movies and a selection of pre-recorded news broadcasts and TV shows, but there isn't live programming -- a feature carried by rival WestJet Airlines Ltd.

Montreal-based Air Canada expects to have two-thirds of its fleet of 200 aircraft refurbished by summer, with the makeover project scheduled for completion by the end of 2007. The entire cabin will get a facelift, including the introduction of lie-flat seats in business class on overseas flights. So far, in a preliminary phase, 14 planes have had their interiors finished and are now in service.

Another feature on Air Canada's seatback screens will be interactive games such as puzzles and card games. There will also be three-prong plugs for laptops, and USB ports to recharge iPods and BlackBerry devices.

Air Canada's new in-flight entertainment system will be free initially, but the carrier wants to eventually generate revenue, perhaps through some type of pay-for-view initiative or tailor-made offerings.

Under one scenario, consumers who pay a higher fare would enjoy first-run movies, while those who choose the lowest-fare Tango class would receive basic offerings such as pre-recorded TV shows. On the audio side, there will be an array of music channels, with content provided by Canadian Satellite Radio Holdings Inc.'s XM Canada brand.