To: Mr. Michael Rousseau
Cc: Air Canada Board of Directors

Dear Mr. Rousseau,

Over the past month, I traveled between Montreal and New York City during the course of my company’s M&A process. Unfortunately, 3 out of 4 legs were disrupted by Air Canada, causing major setbacks.

I recognize the complexities of running an airline. Still, it’s difficult not to feel that customer experience is increasingly treated as an afterthought—an issue that I, like many Canadians, believe requires urgent attention.

But I’m not writing just to complain. I’m writing with a proposal that could transform Air Canada’s brand, revenue mix, and customer loyalty, while avoiding what could otherwise become a contentious path.

Background & Track Record

I’m the founder and CEO of WatchMojo, one of the world’s largest independent digital media companies – headquartered in Montreal. We reach 150 million monthly viewers in 150 countries across YouTube, FAST channels, and global OTT platforms in over 30 languages. In 2015, Ernst & Young awarded us the Entrepreneur of the Year Award in its Media category – which while packaged as an individual award actually recognizes an organization’s prowess and performance.

Since 2006, we’ve been a voice of cultural storytelling, the leading curator influencing pop culture and entertainment. In 2020, a New York-based private equity firm invested in us, valuing WatchMojo at nearly $100M. We are now entering the final phase of a sale process involving both U.S. and international bidders, some of whom are seeking my guidance on ways to maximize the impact of and return on their investment. My goal is to build a billion dollar media company. As YouTube has done to cable what cable did to network TV, WatchMojo is where ESPN or MTV were in 1990, before cable’s golden era. Similarly, YouTube is about to enter its golden era and we are very well positioned to benefit in the decade to come (here’s a video where I discuss YouTube at a conference in Rio, where I couldn’t have been without Air Canada, literally).

The Opportunity

Steve Jobs said that the most important person is the storyteller. The most valuable companies of the future will be those who tell their stories effectively, excel at service and build goodwill around their brand. I believe there is a once-in-a-generation chance to create a media & travel powerhouse by combining:

  • Air Canada’s travel infrastructure and global brand recognition; with
  • WatchMojo’s storytelling capabilities and digital reach.

This vision could redefine not only how travelers engage with inflight engagement, but also to build some of the world’s most valuable media brands, while exporting Canadian culture globally.

Key Benefits to Air Canada

  • Digital Revenue Growth: Tap into the $600B+ digital ad market and $480B creator economy, both of which are largely inaccessible to Air Canada today.
  • Global Reach: Extend Air Canada’s brand via localized video content in Spanish, Arabic, Mandarin, Spanish, French, and more.
  • Brand Modernization: Revamp inflight entertainment, loyalty programs, and customer touchpoints with engaging content and next generation loyalty programs, leveraging blockchain technology.
  • Shareholder Value: Improve multiples by adding high-margin digital/media revenues and elevating goodwill.

Why?

Air Canada has the potential to be Canada’s most valuable brand. Instead, it is perceived—fairly or not—as arrogant and unaccountable. You currently rank 10th in Brand Finance’s strongest brands list and are absent from the most valuable list. That’s an opportunity left untapped.

Avoiding an Adversarial Path

I explored legal options, including a potential class action suit—not to seek compensation, but to challenge what seems like systemic disregard. I’ve succeeded in the areas of injunctions, litigation, copyright, reached settlements —not through noise, but by understanding the law, studying case law and precedents, using discovery while reflecting the regulatory landscape.

But that’s not what I want. Before accepting one of the offers from our sale process, as a big thinker and master operator, I’d rather help elevate Air Canada than be forced to hold it accountable. I am extending a hand in partnership because I believe in Canada and what Air Canada represents.

Still, if this offer is ignored, I will feel obligated to pursue other avenues—Air Canada’s market dominance versus the value and service it provides Canadians is not sustainable. We deserve better.

I’ve already begun gathering feedback from Canadians and legal advisors on service issues like segment cancellations, refund denial, and market monopolization. The evidence suggests that a class action case is viable under commonality thresholds. Is it the best use of my time and energy?

Credibility & Capacity

The investors who have expressed an interest in supporting my vision hail from the USA, Canada, Asia, the Middle East and have over $500 billion under management.

Air Canada, despite EBITDA of $2–3B, trades at a discount to its peers (implied P/E < 3X). You lack access to high-margin verticals, suffer from weak customer sentiment, and have room for multiple expansion. I believe we can help address all three.

I understand the limitations around foreign ownership. But I also see the 51% Canadian threshold as an opportunity to create a compliant, scalable, and uniquely Canadian entity that serves global markets. I have already crafted a structure which seems fairly achievable given Air Canada’s relative low market capitalization and subpar P/E multiple.

To be clear, I am not interested in telling you or your otherwise fine team & employees how to run an airline. But, while I am confident in my business acumen, I’d argue that my main strengths in the foregoing are my emphasis on service and my passion for travel – both business and leisure. While completing my studies in Finance, I was one of Royal Bank of Canada’s top service representatives – emphasizing “first call problem resolution” to generate goodwill. Especially with the rise of AI, it’s clear to me that Air Canada can excel at service with the right combination of technology and a human touch.

An avid traveler, I have visited Argentina, Australia, Brazil, Canada, China, Cuba, Dominican Republic, France, Germany, Greece, Iran, Mexico, Monaco, Portugal, Russia, Spain, The Bahamas, Netherlands, United Arab Emirates, the United Kingdom and United States, and will likely spend most of my future on planes traveling the world.

Closing Thoughts

I believe this vision is bold, timely, and viable. With Air Canada’s engine and WatchMojo’s chassis, we can do something unprecedented and build Canada’s most admired company.

If you are open to it, I would gladly present this to the board or designated leaders. I assure you: I am not your adversary, but a potential ally. Let’s build something extraordinary together.

If not, I am prepared to engage as an activist stakeholder to ensure Canadians receive better service and choice. I have time, energy and more stamina than you can ever imagine.

I look forward to your favorable response by Friday, June 13th at 5 PM EST to explore this further.

Sincerely,

Ashkan Karbasfrooshan
Founder & CEO, WatchMojo