Air Transport World

Air Canada restructuring moving forward.(Brief Article)

Air Canada moved closer to completing its financial restructuring last month with the signing of a broad agreement with GE Capital Aviation Services covering all 106 GECAS-financed and -managed aircraft, as well as new exit and aircraft financing totaling approximately C$1.8 billion ($1.34 billion).

The agreement followed completion of negotiations with AC's major unions on C$1.1 billion in annual labor savings. Its pilots, who are contributing about one-third of the total labor savings, overwhelmingly ratified a contract calling for a 15% reduction in pay scales as well as changes in work rules. In addition, the union said 317 pilots are expected to be laid off over the next six months. …

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