Originally Posted by clunckdriver
[W]hat effect on the viability of AC do you think such cash awards would have on the future of AC?
Compared to the fuel hedge fiasco of a couple of years ago, these damage awards will be
a drop in the proverbial bucket.
Some mitigating factors: first, Air Canada has taken the position that ACPA is jointly liable. 50/50.
Second, some of those who will be entitled to return will have significantly mitigated their potential damages. Indeed, some are making more money, so their wage damage award will be zero. The special compensation awards will remain intact, but may vary, depending of the facts of the pilot cases, versus the CNR cases.
Third, Air Canada's own evidence before the Tribunal is that it saves $40,000 per pilot in immediate cash flow outlay for every course delayed one year. At 10 courses triggered for each pilot electing to delay retirement one year, that is almost a half million dollars in reduced negative cash flow, per pilot, times X pilots per year. Assume that as many as 20 of the 125 or so eligible to retire at age 60 elect to stay, that translates to approximately $9 million in immediate cash flow savings.