Air Canada appears to be in dire financial shape and will be pulling off the gloves to survive.
Air Canada chief Robert Milton outlined a plan Thursday to fix his broken airline by smashing it to pieces and slashing labour costs more than 20 per cent.
Milton also appears to be creating a rift amongst the employee groups between the Lo-Cost / Start-up Airlines and Air Canada.
He said the airline needs to reduce its $3-billion labour bill by $650-million to compete against WestJet Airlines Ltd., which is non-unionized, profitable and growing at a rate of 50 per cent a year.
Air Canada has managed to run most other Canadian Air carriers into the ground under the premise "free enterprise and competition", stating the Government should let the market sort the winners and losers. However:
Transport Minister David Collenette said Ottawa is prepared to help the airline through its restructuring but stopped short of promising financial aid.
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Milton wields axe on troubled airline