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Air Canada laying off 20,000 staff

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Air Canada laying off 20,000 staff

Old 16th May 2020, 01:16
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Air Canada laying off 20,000 staff

Today's news item about Air Canada:

https://www.cbc.ca/news/business/air...offs-1.5572596

The Canadian government has committed many billion dollars payroll compensation to entice companies to retain their staff, I guess Air Canada can't make it work in the near term...
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Old 16th May 2020, 01:49
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I read that, worldwide, commercial aviation is currently losing over $18 Billion a month!
In the immediate aftermath of 9/11, the industry lost more money than it had made since the advent of commercial aviation.
In spite of how incredibly successful and profitable the industry has been the last 10 years or so, it appears history is repeating itself...
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Old 16th May 2020, 05:54
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Many friends at AC. Sad to hear this. This is going to far exceed 9/11 in regards to job losses.
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Old 16th May 2020, 10:53
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Originally Posted by tdracer View Post
I read that, worldwide, commercial aviation is currently losing over $18 Billion a month!
.
Must be way north of that. DL stated that they are losing $1.5Bn/month alone. They are big, but not 8% of global commercial aviation
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Old 16th May 2020, 16:41
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Sad news for Air Canada employees. I still know many pilots there.
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Old 16th May 2020, 18:42
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PM Trudeau announced he will “work with airlines” - could be a veiled threat by AC so that Trudeau gives a bailout so that AC can buy more time. AC also needs an overhaul - same time Calvin R cashed out $57 million last year and now crying - good opportunity to also do a transformation

sad times for Pilots and crew though - let’s see what the unions come up with....

Originally Posted by Pilot DAR View Post
Today's news item about Air Canada:

https://www.cbc.ca/news/business/air...offs-1.5572596

The Canadian government has committed many billion dollars payroll compensation to entice companies to retain their staff, I guess Air Canada can't make it work in the near term...
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Old 16th May 2020, 20:29
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Originally Posted by V12 View Post
Must be way north of that. DL stated that they are losing $1.5Bn/month alone. They are big, but not 8% of global commercial aviation
You may be right - thinking back that $18 Billion might have been per week, not per month. I tried to find the article to confirm but was unsuccessful
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Old 16th May 2020, 21:40
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Originally Posted by tdracer View Post
You may be right - thinking back that $18 Billion might have been per week, not per month. I tried to find the article to confirm but was unsuccessful
From a Forbes article last month, IATA trying to get government bailouts:

Mar 24, 2020,09:14am EDT

Airlines Face $252 Billion In Revenue Losses From Coronavirus, Swift Action On Bailouts Critical To Prevent Failures, IATA Says


Marisa Garcia Senior Contributor

The spread of coronavirus and the resulting closures of international routes will result in $252 billion in passenger revenue losses for the year, the International Air Transport Association said Tuesday. That’s more than double the revenue losses the a airline industry group projected at the beginning of March.

While there has been a recovery in domestic air traffic in China, this is having no effect on international routes, even in Asia, where countries are restricting flights to prevent a rise in imported cases of coronavirus.
https://www.forbes.com/sites/marisag.../#3df423ea1447
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Old 17th May 2020, 05:50
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that’s a little outdated ... we are hitting $314 billion now and simply Juniec still trying to complain. Things are bad / what else to say?

https://samchui.com/2020/05/14/lates.../#.XsDQcPcifDs

Originally Posted by Airbubba View Post
From a Forbes article last month, IATA trying to get government bailouts:



https://www.forbes.com/sites/marisag.../#3df423ea1447
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Old 17th May 2020, 17:02
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Originally Posted by EchoKilla View Post
that’s a little outdated ... we are hitting $314 billion now
You are right, in seven weeks the IATA projected loss has gone from $252 Billion to $314 Billion.

A billion dollars here, a billion dollars there, and pretty soon you're talking about real money. - Senator Everett McKinley Dirksen (1896-1969)
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Old 17th May 2020, 17:38
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I think the Air Canada CEO is operating on the principal of “don’t waste the opportunity a crisis presents”. He is looking to permanently shrink the cost base of the airline both in terms of an optimized fleet mix and structural reductions in the employee cost base.

This is also a shot across the bow of the Prime Minister. The government is shoveling money out the door and he obviously wants some

The really interesting thing for me is of pretty much all of the major airlines, Air Canada has the most pessimistic models for the resumption of air travel and this is the driver for early and drastic action to dramatically shrink the airline immediately.

Sadly I think he is going to be seen as prescient.....
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Old 17th May 2020, 18:19
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I would also guess that Westjet will abandon its overseas aspirations and dispose of its two 787-9’s.
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Old 17th May 2020, 22:26
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Originally Posted by Big Pistons Forever View Post
I think the Air Canada CEO is operating on the principal of “don’t waste the opportunity a crisis presents”. He is looking to permanently shrink the cost base of the airline both in terms of an optimized fleet mix and structural reductions in the employee cost base.

If the airline wishes to survive long-term does he have any other option?. I dont think anyone is thinking that flying is now going to bounce rapidly back to 2019 levels, it is going to take many years if ever.
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Old 18th May 2020, 12:58
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Originally Posted by Commander Taco View Post
I would also guess that Westjet will abandon its overseas aspirations and dispose of its two 787-9’s.
Hope not as I've used the YYZ-LGW service a few times and it's very good. Still selling flights which might prove to be a bit naughty.
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Old 19th May 2020, 04:34
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Originally Posted by Commander Taco View Post
I would also guess that Westjet will abandon its overseas aspirations and dispose of its two 787-9’s.
Two? The 6th is about to be delivered from Charleston and with load factors pre-covid of 95% plus I’d say the early demise is premature.
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Old 19th May 2020, 18:38
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Originally Posted by jumpy737 View Post
Two? The 6th is about to be delivered from Charleston and with load factors pre-covid of 95% plus I’d say the early demise is premature.
Six fins already - I hadn’t realized WJ had ramped up that quickly. As you know, WJ’s transition to a full-service overseas carrier was considered by some financial analysts to be quite risky even in the strong market that existed pre-Covid. Post-Covid, an expensive relaunch into a market full of overcapacity........it will all hinge on Onex’s appetite to acquire and sustain a high cost capital asset in in what will be a low yield environment for some time to come.

To be sure, crappy times for all.
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Old 25th May 2020, 06:47
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so is AC just threatening as a bargaining chip with the Feds to get some extra cash? I mean they just announced almost 100 summer destinations - so no culling yet?

Originally Posted by Big Pistons Forever View Post
I think the Air Canada CEO is operating on the principal of “don’t waste the opportunity a crisis presents”. He is looking to permanently shrink the cost base of the airline both in terms of an optimized fleet mix and structural reductions in the employee cost base.

This is also a shot across the bow of the Prime Minister. The government is shoveling money out the door and he obviously wants some

The really interesting thing for me is of pretty much all of the major airlines, Air Canada has the most pessimistic models for the resumption of air travel and this is the driver for early and drastic action to dramatically shrink the airline immediately.

Sadly I think he is going to be seen as prescient.....
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