Air Transport World

Bankrupt Air Canada. (News Briefs: North America Report).(1st-quarter earnings)(Brief Article)

Bankrupt Air Canada upped its labor cost savings target by 18% to G$770 million ($537.3 million) from C$650 million announced in Jan. The labor savings represent about a third of the total C$2.4 billion in aggregate improvement to operating results the company is seeking. Other savings will be achieved from suppliers, lessors and financiers.

The additional savings are necessary owing to the "deteriorated revenue environment and the consequential reduction in capacity going forward," the airline said. Pilots, represented by the Air Canada Pilots Assn., will provide a 10% wage reduction during June and July in order to furnish interim relief pending completion of labor cost restructuring. …

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