Canadian airlines suspend routes, lay off workers over COVID-19
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While Canadian air carriers shift operations towards repatriating Canadians abroad, some are announcing layoffs.
Calgary-based Westjet announced Tuesday the cancellation of all scheduled international and transborder flights for 30 days, effective March 22, to concentrate on bringing Canadians home.
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As these actions will result in a “significant capacity reduction” and a number of grounded aircraft, Westjet confirmed major reductions in staffing levels.
“The first and most preferred option is to ask our WestJetters to consider voluntary leaves, early outs, voluntary early retirements, among other voluntary measures,” the statement read.
“We will release these details as soon as they are available.”
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Measures to deal with the anticipated downturn include freezing capital projects, negotiating out service reductions and payment deferrals with vendors, and immediate pay cuts for senior leadership — 20% for company executives and 10% for vice-presidents and directors.
Meanwhile, Toronto-based Sunwing announced Monday the suspension of southbound flights until April 10 in order to concentrate on repatriation flights, expecting to bring home nearly 11,000 Canadians by the end of Tuesday alone.
Sunwing told the Sun they could not confirm when commercial southbound flights would resume, the groundings prompting layoffs of pilots and cabin crews.
“Our pilots and flight attendants play a crucial role in our operations and this was not a decision that we took lightly,” Sunwing said.
“Once we have confirmation on a return to service date of our southbound flights, we fully intend to recall our flight and cabin crew members.”
Sunwing also said that, for the first time in company history, it would seek government assistance to maintain operations.
Air Canada, which expects its ASM (available seat miles — a measure of an airline’s passenger seat capacity) to fall by half in the second quarter of this year, announced the withdrawal of both its first-quarter and full year earnings guidance.
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Canada’s largest airline is initiating a company-wide cost reduction and capital deferral program intended to save $500 million, which — depending on the future impact of the crisis — could include deferring delivery of already-purchased Airbus A220 and Boeing 737 MAX-8 aircraft.
Air Canada provided no information on the possibility of layoffs.
bpassifiume@postmedia.com
On Twitter: @bryanpassifiume
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