Air Canada cuts 2000 jobs

[snag]

eeek!

http://ctv2.theglobeandmail.com/servlet ... v-business

[Mad Flying Ace]

oh Jeebus!!

sounds like the music has stopped - hold onto yer seats!!!

[CAL]

that really sucks...how long this time? another 5 years?
I really wonder how the industry is going to be able to react to the rising cost of fuel....can we see a return to growth without an alternative in fuel?

[Ogee]

No.

The rising cost of fuel has a domino effect through many different parts of the economy. Not only do tickets cost more, but the money to buy them is shrinking due to the rising cost of other things that have fuel somewhere in their value added chain.

It doesn't say whether flight crew are going to be laid off, but that would only make sense.

[privateer]

I just saw the news on the BNN, I hope its not all pilots getting laid off.

[peeelot]

Just remember Boys and Girls Air Canada has lots of contracts comming up 2009. If I'm correct the PIlots,F/A's, ground crew and I think the gate agents contracts are up. So we all know they start laying off right before they go to the table. They just wanna make it look like there is no money. Even through this last year there loads have been climbing. Also I'm pretty sure with those 2000 jobs they will be offering a package to some of the senior employees. I dont think the music has stopped just because Air Canada is laying off there are a lot of companys in Canada that cant find pilots or keep them.

That is my 2 cents

[privateer]

Well at least it won't be all pilots...

Air Canada slashes jobs, flights
The Canadian Press




MONTREAL — Air Canadawill cut up to 2,000 jobs at the end of this year as it sharply reduces capacity to deal with the rising cost of fuel, and is warning there are likely more cutbacks to come.

Canada's biggest airline said Tuesday it needs to fly fewer trips as oil prices keep rising to record levels and will cut capacity by 7 per cent from its fall and winter schedule.

Fewer flights mean the airline will require less staff to operate across all levels of the organization, the company said.

“The loss of jobs is painful in view of our employees' hard work in bringing the airline back to profitability over the past four years,” president and chief executive Montie Brewer said in a statement.

“I regret having to take these actions but they are necessary to remain competitive going forward. Air Canada, like most global airlines, needs to adapt its business and reduce flying that has become unprofitable in the current fuel environment,” he said.

“If fuel prices remain at current levels, we can anticipate further capacity reductions.”

Air Canada says that every time oil increases by $1 per barrel, it costs the airline an additional $26-million a year. The company spends more on fuel than any other expense, representing more than 30 per cent of its total operational spending.

With oil over $133 (U.S.) a barrel, the airline estimates it will shell out almost $1-billion more in 2008 than in it did in 2007. It says the average cost of taking one passenger on a round trip has increased to $230, from $146 in 2007 and $110 in 2004.

It also blames federal and provincial fuel excise taxes, security fees and airport charges “that are amongst the most expensive in the world today” as roadblocks to profitability.

Air Canada plans to slash domestic capacity in the fourth quarter of this year and first quarter of 2009 by 2 per cent, U.S. transborder capacity by 13 per cent and international capacity by 7 per cent, for a total of 7 per cent across its system.

Among routes being jettisoned are the previously announced suspension of Toronto to Rome non-stop service — although that will remain for the high-traffic summer season — and the elimination of non-stop service from Vancouver to Osaka, Japan.

With the reductions, Air Canada expects to see full-year capacity growth between 1 per cent and minus 1 per cent. It had originally forecast growth between 1 and 2.5 per cent over 2007 levels.

[whiteguy]

Just remember Boys and Girls Air Canada has lots of contracts comming up 2009. If I'm correct the PIlots,F/A's, ground crew and I think the gate agents contracts are up. So we all know they start laying off right before they go to the table. They just wanna make it look like there is no money. Even through this last year there loads have been climbing. Also I'm pretty sure with those 2000 jobs they will be offering a package to some of the senior employees. I dont think the music has stopped just because Air Canada is laying off there are a lot of companys in Canada that cant find pilots or keep them.

That is my 2 cents

All contracts are up in 2009! I think Montie is loving this situation, its working out perfectly for him in 2009.

[Stinky]

I dont think the music has stopped just because Air Canada is laying off there are a lot of companys in Canada that cant find pilots or keep them.

The reason why companies couldn't hang onto their pilots is because they had a place to go, with A/C, Jazz, transat and others no longer hiring there's not too many places to move onto.

[timbob]

Just heard an airline analyst on Toronto radio say that he believes that in a situation like this that the layoff will consist of mainly flight and cabin crews. Ouch!

[paokara]

CONTRACT IS COMING IN 2009!!

DO YOU SEE THE BIG PICTURE. THIS IS PART OF THEIR PLAN TO CUT MORE PAY AND TAKE AWAY MORE BENEFITS.

LET'S BLAME THE OIL SHALL WE UNCLE MONTIE AND UNCLE MILTON.

Dont believe what they say, just as experts said that Air Canada should never had filed for bankruptcy but they did so they can cut more pay from the workers at AC.

All part of the big plan.

[small penguin]

Also I'm pretty sure with those 2000 jobs they will be offering a package to some of the senior employees.

How many topics have been posted on AvCan about pilots being tired and fed up with their salary? Now you're complaining that someone else's job may give you that boost? Cant have both!

Any of you guys followed the idiots in Ontario that wanted an immediate raise of minimum wage to 10 dollars an hour? If that had gone through, you bet a lot of the "lower" employers such as fast food chains would have laid off a bunch of people. Cant afford it.

Very simply, its cheaper to employ one person at 20 dollars an hour than it is to employ two people at 15 dollars an hour (30 total). Be it flight crew, gate agent, ground crew, whatever. Cut a few people out (sure they wont like that), and then shut the rest up by giving them a little extra. I honestly wouldnt be surprised.

[wallypilot]

Just heard an airline analyst on Toronto radio say that he believes that in a situation like this that the layoff will consist of mainly flight and cabin crews. Ouch!

Funny, I just saw an analyst say that it will be mostly front line employees....that the pilots will just fly less.

However, I have this feeling that some flight crews might get the axe if they can't retire enough senior folks through packages.

It seems like a way to lower wages in the long term as well. Retire the senior folks on the old payscale, and voila, your expenses going forward are lower!

But what do I know?

[pelmet]

Bad times for the industry approaching.

[. .]

Just heard an airline analyst on Toronto radio say that he believes that in a situation like this that the layoff will consist of mainly flight and cabin crews. Ouch!

Funny, I just saw an analyst say that it will be mostly front line employees....that the pilots will just fly less.

However, I have this feeling that some flight crews might get the axe if they can't retire enough senior folks through packages.

It seems like a way to lower wages in the long term as well. Retire the senior folks on the old payscale, and voila, your expenses going forward are lower!

But what do I know?

Wally, there isn't a B scale like at Cathay Pacific. Air Canada only has an A scale, so you're not moving forward on a new cost structure by retiring people out. If anything you're just creating a massive land slide of training costs as everyone moves around onto new equipment.

[THEICEMAN]

If oil swings the other way in 6 months, Montie is going to look so bad.

Any plans to cut pilots? Do you think they might force some to retire early or just cut the bottom of the food chain?

[timbob]

Funny, I just saw an analyst say that it will be mostly front line employees....that the pilots will just fly less.

"However, I have this feeling that some flight crews might get the axe if they can't retire enough senior folks through packages.

It seems like a way to lower wages in the long term as well. Retire the senior folks on the old payscale, and voila, your expenses going forward are lower!

But what do I know? "



Guess thats why the call them anal ysts

[pilotbzh]

7% cut in flights by next spring, so about 7% less crew. That's 3400 pilotsX7%= 238 pilots in surplus take away the 38 unfilled seats on the last bid and close to 100 retirement by the spring there is still about 100 pilot in surplus... but I don't think they'll have to lay off anybody, less hours for everybody for sure and little move in the near future...
Hang on to your seat...

[Disco Stu]

Wally, there isn't a B scale like at Cathay Pacific. Air Canada only has an A scale,

Then what is the Position Group?

Then why is the EMJ not paid forumla rates?

Not only is there a "B" scale, but there is a "C" scale as well!

[Glen Quagmire]

From what I understand you need to lay off a pilot for at least 2 years for it to make financial sense with all the retraining etc. The 787 should be on a bid in 18 months which should be a growth bid. 100-150 retirements a year, 40 open positions as of last bid, they can reduce the hrs to 72 a month, which could potentially offset 325+ positions if the average block is 80 hrs. Packages for the senior boys and offers of LOA's. All of the above should be more than enough but who knows. Layoffs would be nice and symbolic for the 2009 season.

[. .]

Disco, once you're out of the Position group or flat salary you're moved onto standard formula pay. That's far different than the Cathay B and C scales where you're stuck in them for your entire career. I'm not trying to justify the position group or flat salary, but for it to be called a B pay scale is totally incorrect in the context of Cathay Pacific etc.

[tsgas]

Conserve cash . The fastest way is to cut the payroll.
They tried to cut back too muchon the fuel and ended up in Gimli.

[Disco Stu]

Disco, once you're out of the Position group or flat salary you're moved onto standard formula pay. That's far different than the Cathay B and C scales where you're stuck in them for your entire career. I'm not trying to justify the position group or flat salary, but for it to be called a B pay scale is totally incorrect in the context of Cathay Pacific etc.

You ARE stuck in the PG for the rest of your career. If a downturn comes and you get punted form the right seat of the 320 into an RP position, guess what, you're back in the PG!

Anyway, they announced 120 surplus pilot positions. With LOAs and early retirement packages, that number could be significantly less when it is related to lay offs.

[. .]

Disco: We're arguing semantics here. If you truly believe that the position group is on the same scale as Cathay's B and C scales despite only consisting of 4 job classifications, of which they are the 4 most junior then so be it. My point was that at Air Canada you CAN escape the pay group by eventually bidding out of those positions. At Cathay Pacific no matter where you bid, be it 777/747/340 Captain, you can't escape the B/C scale pay. So in light if that I still believe that you're not even close to comparing likes.

[V1RotateV2]

Just remember Boys and Girls Air Canada has lots of contracts comming up 2009. If I'm correct the PIlots,F/A's, ground crew and I think the gate agents contracts are up. So we all know they start laying off right before they go to the table. They just wanna make it look like there is no money.

I guess American Airlines, United, Delta and the others must have contract negotiations coming up on 09 as well.
Probably Aloha and SilverJet couldn't wait and stopped flying just to send out a strong message to their unions, right?

The impact of high oil prices and inefficient structures is not a good combo. No need to pretend there is no money. AC lost enough during the first quarter (burning cash they didn't have at a rate of approx. 3M a day) to show everybody in the industry that they are actually running out of money.

All airlines are facing a very tough ride. No need for conspiracy theories this time.