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HEALTH-VIRUS-CANADA-AVIATION-ECONOMY
Air Canada to temporarily lay off half its workforce
MONTREAL, March 31, 2020 (BSS/AFP) – Air Canada announced Monday it would
temporarily lay off nearly half of its employees and reduce activity by up to
90 percent in the second quarter due to the coronavirus.
The measures would affect 15,200 employees and about 1,300 managers from
April 3, the airline said in a press release.
Last week, Air Canada — the first Canadian airline to be hit hard by the
pandemic — announced the temporary layoff of more than 5,100 flight
attendants, including 1,500 members of its low-cost subsidiary Air Canada
Rouge.
“The unpredictable extent and duration of the COVID-19 pandemic requires a
significant overall response,” Air Canada president Calin Rovinescu said in
the statement.
“To furlough such a large proportion of our employees is an extremely
painful decision but one we are required to take given our dramatically
smaller operations for the next while.”
The Montreal-based company will reduce operations for the second quarter of
2020 by 85 to 90 percent compared to the same period the previous year.
A cost reduction program will be implemented to generate “at least $500
million” (320 million euros). Senior executives will give up a part of their
salary, and the president and chief financial officer will give up their
entire salary.
Air Canada has suspended most of its international flights, including to
the United States, after the announcement of the temporary closure of the US-
Canada border in an attempt to stop the spread of the coronavirus.
The number of airports in Canada it is now serving has been reduced from 62
to 40.
Air Canada employs 36,000 people around the world, according to the company
website.
Canada’s second-largest airline, Air Transat, which is being acquired by
Air Canada, also announced it would lay off nearly 2,000 flight attendants,
beginning in early April.
BSS/AFP/GMR/1025 hrs