Regional impact of Air Canada cuts unclear
Last Updated: Wednesday, June 18, 2008 | 7:53 AM AT
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Air Canada Jazz doesn't know how its operations might be affected. (CBC) Air Canada, which announced 2,000 job cuts Tuesday, is not yet saying how the layoffs are going to affect operations in the Atlantic region.
So far, the airline has announced plans to cancel several flights to Europe, Asia and the United States. At the Charlottetown Airport, where double-digit growth in passenger traffic has been the norm for the last two years, it could be the first sign that the good times are coming to an end.
"We haven't been told anything," airport CEO Doug Newson said.
"We do have about 32 Air Canada staff here at the airport, so I'm sure they're a little concerned at this point. But it's not up to me to speculate as to what changes will take place here."
There are 32 Air Canada staff in Charlottetown, airport CEO Doug Newson says. (CBC) The layoffs were prompted by the high cost of fuel, which has doubled in the last year, Air Canada said. It estimates that every dollar increase in the price of a barrel of oil adds $26 million to its annual operating costs. It plans to cut capacity on its domestic routes by two per cent, its routes into the U.S. by 13 per cent and its international flights by seven per cent.
How flights out of Charlottetown might be affected is unknown. Its airport is serviced by Air Canada Jazz, a Halifax-based company that provides Air Canada with regional air service.
A spokesperson said it will take time before the implications of the layoffs are clear.
"We'll meet with Air Canada over the next few days to determine any impact on our services in the fall schedule that becomes effective on Nov. 1," said Manon Stuart.
Jazz has 840 employees in Atlantic Canada, including 680 at its headquarters in Halifax.
Passenger Ron Bourdon, speaking to CBC News at Charlottetown Airport on Tuesday, doesn't believe cutting staff will help persuade people to continue flying in the face of increasing surcharges.
"As they cut back it stresses the staff who are remaining," Bourdon said.
"It's not their fault. I really feel for the staff. But when they're short-staffed, which they're going to have to be if they cut back further, it makes the experience less pleasant."
With the cuts, Air Canada joins several U.S. airlines that have already announced layoffs and fewer flights.
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