Air Canada (TSX:AC)is now seeking $770 million in labour concessions from its unions as part of $2.4 billion in annual cost cutting the airline says it needs to make.

The new labour concessions the airline is seeking top the $650 million Air Canada originally said it was pursuing when it obtained bankruptcy protection in early April.

The company said the outbreak of severe acute respiratory syndrome has compounded its financial problems.

"Following on the impact of the war with Iraq, SARS continues to have a significant impact, not only on Asian routes but also on the airline's entire network and in particular its Toronto hub," the company said.

"The increased labour/management cost reduction target of $770 million (before benefits improvements) is a reflection of both the current deteriorated revenue environment and the consequential reduction in capacity going forward," Calin Rovinescu, Air Canada's chief restructuring officer, said.

Air Canada is also reported to be seeking about $400 million in benefit and pension concessions.

The airline's unions, which were briefed during a series of 90-minute meetings in Montreal on Wednesday, reacted angrily to Air Canada seeking more concessions.

The company's latest proposal is based "not on need, but on greed," Canadian Auto Workers spokesperson Gary Fane said.

Don Johnson, the head of the Air Canada Pilots Association, said he was dismayed to see the details of the concessions the company is seeking released to the media.

Air Canada hopes to have labour concessions in place by June 30.

In related news, a Toronto judge will hear arguments on a surprise bid by MBNA Corp. of the U.S. to buy the Aerogold credit card business.

The Aerogold Visa card is currently issued by CIBC. Users of the credit card can earn travel points for Air Canada flights, hotels and auto rentals.