Air Canada has announced the reduction of 1,700 jobs on the company’s main line and 25% of its capacity in offered seats scheduled for the first quarter of the year, due to the effects that the new testing requirements had on demand PCR-negative pre-trip coronavirus tests that Canada has established for inbound passengers.
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The airline claims that the COVID testing program had an “immediate impact” on the company’s booking volume when it was introduced a week ago.
“We have made the difficult but necessary decision to further adjust our schedule and streamline our cross-border, Caribbean and domestic routes,” said Air Canada Executive Vice President Lucie Guillemette.
The leading operator in Canada and one of the largest in North America is reducing air capacity by approximately 25% in the first quarter of this year. This cut includes suspending all flights to Labrador on the Atlantic coast.
The capacity cuts will mean the loss of 1,700 jobs at the airline, as well as an additional 200 jobs at Air Canada Express.
The office of the new Transport Minister, Omar Alghabra, said in a statement that “the government is disappointed with the cuts,” as it is in the process of developing an assistance package for the Canadian airline industry.
“Before spending a penny of taxpayer money on airlines, we will ensure that Canadians receive their refunds and regional communities retain their air connections with the rest of Canada,” said a ministry spokesman.
Mike McNaney, president and CEO of the National Airline Council of Canada, said the latest capacity cuts are jeopardizing air connectivity to many remote regional locations.
“These announcements capture the stark reality that we are losing connectivity and service to communities across Canada at a rate that threatens to undo billions of dollars in investments made over the past 10 years,” McNaney said.
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