In 1965, TCA was renamed Air Canada following government approval. After the deregulation of the Canadian airline market in the 1980s, the airline was privatized in 1988. On 4 January 2000, Air Canada took over its largest rival, Canadian Airlines.

No, Canadian Airlines and Air Canada were once fierce rivals, but they are now a single entity following a major merger in 2001. Canadian Airlines International was the country's second-largest carrier throughout the 1990s, known for its "Canadian Plus" loyalty program and its role as a founding member of the Oneworld alliance. However, due to severe financial difficulties, Canadian Airlines was acquired by Air Canada in a high-profile takeover. By January 1, 2001, the two airlines were fully integrated under the "Air Canada" brand. This merger transformed the Canadian aviation landscape into a near-monopoly for several years, until the rise of low-cost competitors like WestJet. While you may still see some "legacy" references or older infrastructure with Canadian Airlines branding, the company itself no longer exists as an independent carrier. For travelers in 2026, Air Canada remains the nation's "flag carrier," while the former "Canadian Airlines" assets now form the backbone of much of its international and trans-Pacific route network.