NITN | @notintownlive | 20 May 2020
Ottawa/NITN: Collapsing of the aviation industry, due to the coronavirus outbreak, forced Air Canada to slash its workforce by 50 to 60 per cent effective June 7, a memo by the company sent to all its employees said.
"Sadly, today the hard truth is that by every indicator we have available to us, we believe that we will be materially smaller for at least three years," Craig Landry, Air Canada's executive vice-president of operations, said in the memo.
The announcement comes amidst shutdowns and confinement measures prompting Air Canada to ground some 225 airplanes.
In its statement on Friday evening, Air Canada said that approximately 20,000 people would be affected by this downsizing.
At a minimum, layoffs will reach 19,000 — half of the current payroll — and could go as high as 22,800.
To minimize the number of layoffs, Air Canada is also planning to slash the schedules of flight attendants, asking them to go on leave for up to two years or resign with travel privileges.
Air Canada did not respond directly to questions about whether it would drop the wage subsidy program, which Ottawa has extended through August, allowing employees to be rehired.
Although Air Canada is not contributing to most worker wages, the airline has been putting money toward pensions and benefits that cost the company more than $1 billion last quarter.
It is expected that even with the slight pick up of the traffic before year's end, the recovery will be slow, with at least three years of subpar earnings, Air Canada CEO Calin Rovinescu said last week.
(Reporting by Asha Bajaj)
- GoAir repatriates 37,990 stranded Indians, clocks more than 200 international charter flights
- IndiGo announces it will slash 10 percent of workforce
- GoAir clocks more than 100 international charter flights, repatriates 18,195 stranded Indians
- Etihad Airways to resume special passenger services to six destinations in India
- Etihad Airways announces new codeshare agreement with Air Arabia Abu Dhabi
- Etihad Airways to resume wider network of flights as UAE travel restrictions ease
- India keeps all international passenger flights suspended till Jul 15
- Etihad Airways partners with Medicus AI to launch Covid-19 risk assessment tool
- IndiGo repatriated 751 Indian Nationals from Qatar
- IndiGo repatriated 643 Indian citizens from Qatar and Maldives
New Delhi: Private carrier GoAir has repatriated 37,990 stranded Indians and clocked more than 200 international charter flights till date.
New Delhi/NITN: Private airlines major IndiGo on Monday announced it will lay off 10 per cent of its workforce.
New Delhi/NITN: Indian airline GoAir has clocked more than 100 international charter flights and repatriated 18,195 stranded Indians.