Air Canada gets into drone delivery business

[MONTREAL] Canada's flagship airline is getting into the business of delivering cargo by drones, announcing on Tuesday a sales agreement with Drone Delivery Canada to market its services across the country.

The 10-year deal will see Air Canada's cargo division pursue sales of the start-up's delivery services on tens of thousands of planned routes.

"We believe drone technology has the potential to offer the cargo community cost-effective solutions to complex issues," Air Canada vice-president Tim Strauss said in a statement.

Mr Strauss emphasised how the service could be particularly useful in remote communities.

Drone Delivery Canada said it is planning to build and operate up to 150,000 drone delivery routes in Canada, before pushing in the United States and Europe.

It must still obtain regulatory approvals.

The company last year signed its first contract, a C$2.5 million (US$2.55 million) deal to deliver supplies, medicine, food and mail to the remote Moose Cree First Nation in the north of Ontario province.

AFP