Air Canada Puts 16,500 Staff on Furlough, Cuts Operations
- CEO says decision will help ensure airline weathers crisis
- Canada has yet to unveil plan to support industry hit by virus
Travelers stand in line to check in at the Air Canada booth in Puerto Vallarta, Mexico, on March 22.
Photographer: Cesar Rodriguez/BloombergThis article is for subscribers only.
Air Canada will cut capacity by as much as 90% next quarter and temporarily reduce its workforce by about 16,500 to reduce costs during the coronavirus crisis.
The decision, effective on or around April 3, puts 15,200 unionized employees on “off-duty status” while 1,300 managers will also be furloughed, the airline said Monday. The company said the cuts were required because of the “dramatically smaller operations” resulting from travel restrictions worldwide.