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Air Canada chops 2,000 jobs
Air Canada, faced with soaring fuel prices, will cut capacity in fall and winter, resulting in up to 2,000 job cuts, Canada's largest airline said on Tuesday.
The airline said it would cut capacity by 7% in the final quarter of this year and the first quarter of 2009. But it said the cuts could be deeper than that if fuel prices remain at current levels.
"Air Canada, like most global airlines, needs to adapt its business and reduce flying that has become unprofitable in the current fuel environment. If fuel prices remain at current levels, we can anticipate further capacity reductions," said Montie Brewer, chief executive.
Fuel is Air Canada's largest expense and every $1 increase in the price of oil per barrel adds about $26-million to the company's annual fuel bill. The price of fuel has doubled over the past year and at current levels will cost the airline some $1-billion more in 2008 than it did in 2007, Air Canada said.
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Most RecentMost Recommended Comments (13)
at 09:11 on June 17th, 2008
So much for air travel: it's un-environmental, uncomfortable, and increasingly unaffordable.
at 14:02 on June 17th, 2008
I have been trying for like 10 minutes to try and thank you both for your comments and correct insights, but for some reason this friggin now public computer won't let me dammit.
at 11:12 on July 10th, 2008
Again...yet another non-intelligent opinion. C'mon guys...get the facts straight! Airplanes are un-environmental? No more so than your vehicle!
Consider this:
An A320 with 140 people on board, flying between Toronto and Vancouver burns 12.9 tonnes of fuel; about 16,000 litres. Putting those same 140 people in compact cars (Toyota Camry (6.9 l/100km), 2 per car, the total fuel burned in the 70 cars would be 21,000 litres.
In one day, Air Canada and Westjet carry approximately 4200 people from Toronto to Vancouver(one way). At 2 people per car, 6,540,000 road kilometres would be driven, resulting in
None of this takes into account the energy, cost and destruction of trees, waterways and animal habitat caused by building roads. If everyone who currently flew, drove - additional road infrastructure would have to be increased, destroying trees, affecting waterways and animal habitat.
So, even with "car pooling" 2 people per car, airplanes are more pollution/energy efficient than automobiles.
Uncomfortable? Compared to what?
Unaffordable? C'mon now...Airline tariffs are lower than they ever have been. It's much cheaper to fly today as opposed to the 1970s/80s/90s. Hence air travel has lost its romance and has become as commonplace as taking a Greyhound bus. The fares are much lower - the difference is in the taxes applied - none of which the airlines keep.
You guys remind me of some sports fans who think because they watch sports are world experts - NOT!!! More like inept armchair quarterbacks!
at 13:42 on June 17th, 2008
Barry Artiste, I like this story. It's good stuff.
I stopped flying Air canada a few years ago. I was fed up pay way too much for poor food, abysmal service and late flights. They act like government employess; like we have no choice but to fly them so they don't need to give good service.
Whenever I fly now I try to fly out of the US these days....cheaper airfares, better service and more choice. I am currently looking at a flight from vancouver to Spain. Air Canada wants over $3000 for economy. I can fly out of Bellingham on BA for $1300.
To all those fired Air Canada employees....don't let the cockpit door hit you on your way out!
at 10:17 on July 9th, 2008
Good luck finding cheap air fares with Air Canada this summer, laying off 2,000 staff cannot be good for this ailing airline with skyrocketing fuel costs hitting their bottom line. First after 9-11 it was a surcharge for additional security, then it was bring your own food and water onboard from the airport kiosk, then additional charges for extra baggage, then charges for headsets, one wonders what's next? Bring your own toilet paper? Then what else is new, most likely we'll see Passengers pooling their pocket change together to pay for fuel for takeoff?
It must be nice to spend your pathetic existence being completely ignorant and oblivious to fact. Airlines don't charge for security - the Federal government does...The airlines are simply the collector. Water? Blame your terrorist factions for this - the airlines do not regulate what you can bring on board - again...look at your Federal government. Food? Funny how AC gets trashed for not having meals - but Westjet started the trend and I haven't heard any bitching about them. Strange how the fare can be the same, but people expect AC to feed them. Baggage? Take a look at airlines gobally - they're all doing it - blame the oil speculators for that one. As if your pathetic $25 even covers the fuel burn required for an additional 50 lbs on a flight!!! Headseats have always been free and still are!
Whenever I fly now I try to fly out of the US these days....cheaper airfares, better service and more choice. I am currently looking at a flight from vancouver to Spain. Air Canada wants over $3000 for economy. I can fly out of Bellingham on BA for $1300.
Open your eyes you idiot - the fare with AC is high because it is a joint fare with another airline, Spanair. I guess in your world, AC should force another airline to give YOU a cheaper fare! BA - They offer a lower fare as they have their own flights in/out of Spain, and your fare example is comparing a sale fare to full fare - apples and oranges. Go ahead..fly BA...The british call them Bloody Awful for a reason!
To all those fired Air Canada employees....don't let the cockpit door hit you on your way out!
Nice sentiment. If only it were that easy to get rid of bad employees in every company. Unfortunately, layoffs and job losses affect the most junior employees - usually the ones who haven't had the time to become jaded, and are very service oriented. And the sad part is they are the ones with the youngest families and mortgages. How you can trivialize someone losing their job is sickening. Obviously, you are devoid of any conscience - likely you are the world's biggest waste of human skin.
at 14:47 on July 9th, 2008
Hey Anonymous, you must be some lackie from big labour. Is you name Buzz? I will fly with the airline that gives me the best service at the best price. And that does not seem to be AC. Why would you make appologies for them? They are dodos...soon to be gone. If the employees weren't such assholes I might cut them some slack. And by the way my mother started in the airline biz with Pacific Western Airlines in the 70's to later join Canadian Airlines and then Air Canada. I have flown on hundreds of flights with just about every carrier and AC sucks at any price! I hope they go under and some decent company takes over.
at 07:25 on July 10th, 2008
Nah...I'm not big on unions and I don't make apologies for AC. I think your expectations of service are out of whack with todays world. Everything you had an issue with wasn't an AC issue - so why trash them? I guess your mother was an asshole too if she worked with AC?...oh wait...she came from Canadian...that's right...that "other" airline that went out of business, and the employees kept their jobs rather than face the EI line...all the while displacing junior AC employees. But I guess that was AC's fault? I'f be willing to bet your mother got the best 3 years of her career for pension purposes while at AC. But in your world - they should have fired her ass. Again - I don't care how many carriers or flights you've been on - it doesn't account for shit when you can't get your facts straight.
at 13:21 on July 9th, 2008
Not to mention laying off more senior personnel, such as pilots years shy of collecting a pension, then Air Canada going out and hiring the cheaper junior pilots in order to trim the bottom line.
Thanks for visiting Anon
at 07:40 on July 10th, 2008
Not exactly they way it happens. I think you've been speaking to some disgruntled wannabees who weren't good enough to hold a spot on the line. Pilots are paid commensurate to their aircraft type rating. And the only way to climb that ladder to a larger aircraft rating and higher pay scale is by accruing seniority. Junior pilots aren't given the opportunity to fly widebodies - something that would hurt AC big time if they let go of their senior highest paid pilots on the 777/767.
The point is, that everybody loves to trash airlines, especially AC, as the Canadian public seems to think that they own the company. Hell, half of the Canadian public still thinks AC is crown operated. It's been twenty years since privitization. And it drives me nuts that people bitch about the airlines - all the while being fleeced by the government who impose ridiculous security fees, air navigation fees, and airport fees.
Funny...we get hosed by oil companies, banks, cell phone companies etc...yet everyone always bitches about the airlines. because they assume they're in the know because they've traveled. Kinda like saying you're a gourmet chef because you've eaten fine foods hundreds of times.
at 13:03 on July 10th, 2008
Overpriced airfares are one thing and our Canadian cost structures are higher than in the US but none of that explains why the employess are such assholes. Their attitudes are their biggest liability.
at 12:58 on July 10th, 2008
Here's another very interesting fact that very few Canadians are aware of and receives very little media coverage: AC and Westjet both withdrew their membership from the Air Transport Association of Canada. They are joining forces to lobby the federal government to address the tax burden the tranportation industry faces and to gain the acknowledgment that commercial aviation in Canada is an industry that should be supported as an engine of the Canadian economy rather then simply treated as another source of government revenue.
In 2005 the Federal Government collected $793 million in tax revenue from the air transportation industry, while Canada's three dominant airlines reported a combined profit of only $282 million. And people thought the airlines were ripping them off!!!
at 19:54 on July 10th, 2008
Thanks for your comments Guys, it has been reported in the media, Vancouver's Air Canada will be laying off 650 employees and the bulk of these employees will be stewardesses
at 12:27 on July 11th, 2008
Last time I flew AC the stewardesses were close to retirement age anyway.