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Air Canada's COVID-19 actions

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2 hours ago, conehead said:

What is the offer?

J pos pass expiring Dec 2021, no other incentive for employee's eligible to retire. Other options of extended unpaid leave or reduced hours.

 

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Air Canada, U.S. airlines say ticket cancellations slowing, demand improving

News from the Vancouver Sun – link to story

Reuters  •  19 May 2020

1225261316-e1589898020564.jpg?quality=10 Decommissioned and suspended Air Canada commercial aircrafts are seen stored in Pinal Airpark on May 16, 2020 in Marana, Arizona. CHRISTIAN PETERSEN / Getty Images

Air Canada and two top U.S. airlines and said on Tuesday ticket cancellations were slowing and demand was showing signs of improvement since the coronavirus pandemic brought global travel to a virtual standstill last month.

Shares in Southwest Airlines Co and United Airlines Holdings Inc rose on the news.

Southwest, focused on the U.S. domestic market, said it was adding some flights in June, which will bring that month’s overall annual capacity decline to between 45% and 55%, less severe than May’s decline of 60% to 70% in May.

Chicago-based United, which has greater international exposure, said its June capacity would still be down by about 90% year-on-year, and 75% in July. Overseas travel is expected to be slower to recover.

“We might have hit the bottom in the short-term. But is it getting better soon? Until immunization, travel trends are not going back to normal anytime soon,” said Burton Hollifield, professor of financial economics at Carnegie Mellon University’s Tepper School of Business.

All airlines remain focused on reducing costs.

Southwest said its daily cash burn rate was slowing to the low-$20 million range in June from $30 million to $35 million in the overall second quarter.

Speaking at an industry conference, Air Canada CFO Mike Rousseau said he could not predict when his airline’s cash burn would go to zero, noting it will depend on revenue performance in the coming months.

United said its total adjusted capital expenditure for 2021 would be close to $2 billion versus around $4.5 billion this year, falling to below $500 million in 2022 when it does not expect to take delivery of any new aircraft. It is taking fully financed jet deliveries this year and next.

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Air Canada to stop emergency wage subsidy, and thousands of job cuts will leave workers out in the cold, says union

News from the Vancouver Sun – link to story

Emily Jackson| 21 May 2020

air-canada-6.jpg?quality=100&strip=all&w Air Canada check in terminals stand at Toronto Pearson International Airport. COLE BURSTON/BLOOMBERG

Air Canada will not continue to use the federal emergency wage subsidy and has instead given employees the option of unpaid leaves, reduced work hours or resigning, the union representing the airline’s flight attendants said Thursday.

Canada’s largest airline said last week it plans to cut up to 20,000 people, or 60 per cent of its workforce, given plummeting demand for air travel during the global pandemic. Air Canada has slashed its flight capacity by about 90 per cent due to international travel bans and stay-at-home orders.

 

The Air Canada component of the Canadian Union of Public Employees, which represents flight attendants at Air Canada and Air Canada Rouge, said it’s disappointed the airline is cutting thousands of employees in a way that will prevent workers from accessing COVID-19 government aid.

The union said employees must choose between voluntary unpaid leaves lasting six to 24 months, reduced work hours with no top up or resigning — voluntary measures that would prevent employees from accessing the Canada Emergency Response Benefit that provides laid off workers with up to $2,000 per month.

“The government and Air Canada are washing their hands of this devastating situation and the only options our members are left with is either quit or get laid off and go on (employment insurance),” Wesley Lesosky, president of the Air Canada Component of CUPE, said in a statement.

“This is shameful and disrespectful towards the workers who have built this airline, who faced this epidemic on the front lines, and who were among the first in Canada to get sick with COVID-19 while doing their jobs.”

Lesosky called on the government and Air Canada to work together on better options for workers.

Air Canada did not immediately respond to a request for comment on the layoffs and how, or if, it will use the new government assistance program for large employers with more than $300 million in annual revenue.

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Is this decision because of the contracts in place with the Union?  Why would the company not simply just start at the bottom and start cutting like in the past?

Seems I recall some sort of no layoff clause and if thats the case, welcome to your bed, lie down.

 

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MONTREAL, May 22, 2020 /CNW Telbec/ - Air Canada is offering customers a choice of nearly 100 destinations in Canada, the U.S. and around the world with an abridged schedule this summer. To ensure customers can book with confidence, the airline has implemented the Air Canada CleanCare+ biosecurity program and is introducing new cancellation options retroactive to March 1, 2020, to give customers greater flexibility and choice should their travel plans change for any reason.   

"Air Canada has put in place an abridged summer schedule offering a choice of nearly 100 destinations across Canada, in the U.S. and internationally. As we emerge from the COVID-19 pandemic, during which as much as 95 per cent of our flights stopped operating and which has left us flying to less than half last year's destinations, our customers are expressing their eagerness to travel,  where it is safe to do so. We are accordingly gradually opening for sale flights for the summer and beyond as we rebuild our network, leveraging our strong position as a global airline. Air Canada is ready for take-off, and we look forward to welcoming our customers onboard," said Lucie Guillemette, Executive Vice President and Chief Commercial Officer at Air Canada.

"While the world is making great progress against COVID-19, we know we must remain vigilant, which includes being flexible. This is why we are introducing two new solutions for customers should their travel plans change. In addition to our regular goodwill policies, starting June 1 we will offer customers the choice of a travel voucher with no expiry date that is fully transferable or to convert their booking into Aeroplan Miles and get an additional 65% bonus miles. Both options, retroactive to March 1, give customers greater confidence and flexibility to plan and book travel with Air Canada," said Ms. Guillemette.

"Finally, to further ensure the safety of our customers and employees, we have introduced Air Canada CleanCare+, a comprehensive biosecurity program to reduce the risk of the spread of COVID-19. Air Canada CleanCare+ works through multi-layered measures that limit unnecessary interactions, require the use of personal protective equipment and employ state-of-the-art cleaning techniques onboard our aircraft. We have further committed to adopt new strategies and technologies as they become available."

 

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11 minutes ago, dagger said:

"While the world is making great progress against COVID-19, we know we must remain vigilant, which includes being flexible. This is why we are introducing two new solutions for customers should their travel plans change. In addition to our regular goodwill policies, starting June 1 we will offer customers the choice of a travel voucher with no expiry date that is fully transferable or to convert their booking into Aeroplan Miles and get an additional 65% bonus miles. Both options, retroactive to March 1, give customers greater confidence and flexibility to plan and book travel with Air Canada," said Ms. Guillemette.

🤔

So book your flight with us and if we can't get you there because of border restrictions we'll gladly give you a voucher or Aeroplan points?

That sounds enticing...

 

 

 

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33 minutes ago, mrlupin said:

🤔

So book your flight with us and if we can't get you there because of border restrictions we'll gladly give you a voucher or Aeroplan points?

That sounds enticing...

 

 

 

Border restrictions and quarantine requirements are the obstacles to airlines operating flights and to passengers booking travel at the moment.  While maybe not likely to stimulate demand much, the new options offer more flexibility to customers than existing policies do.

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4 minutes ago, FA@AC said:

Border restrictions and quarantine requirements are the obstacles to airlines operating flights and to passengers booking travel at the moment.  While maybe not likely to stimulate demand much, the new options offer more flexibility to customers than existing policies do.

I wonder if fully transferable means the voucher can be sold on Ebay

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7 minutes ago, dagger said:

I wonder if fully transferable means the voucher can be sold on Ebay

Buy a J class round trip to Oz for early June and let us know. 😉

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Quote

starting June 1 we will offer customers the choice of a travel voucher with no expiry date that is fully transferable or to convert their booking into Aeroplan Miles and get an additional 65% bonus miles. Both options, retroactive to March 1.
 

That's a sizeable move off the earlier FU stance. I'd wager they more felt the heat rather than saw the light.

Quote

 The Globe and Mail reports in its Friday edition that Canadians are increasingly showing signs of being fed up with airline travel vouchers rather than refunds because of the COVID-19 pandemic. A Canadian Press dispatch to The Globe says that a trio of petitions with more than 77,000 signatures are calling for full refunds to be implemented before financial aid is handed out to airlines, two of which were presented to the House over the past 10 days. None of Canada's major airlines are offering to return cash to passengers for the hundreds of thousands of flight cancellations since mid-March, opting instead for 24-month vouchers.Pressed on the issue Thursday at his daily news conference, Prime Minister Justin Trudeau said the government will look at the issue further. "We need to have some very careful discussions with airlines, with the air travel sector and, indeed, with Canadians who are concerned to try and figure out a way forward where we can ensure that Canadians are treated fairly and our industry remains there for when our economy picks up again," Mr. Trudeau said. Canada is an outlier among Western countries on the issue of refunds, with the European Union and the United States requiring airlines to offer them.

 

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40 minutes ago, FA@AC said:

Border restrictions and quarantine requirements are the obstacles to airlines operating flights and to passengers booking travel at the moment.  While maybe not likely to stimulate demand much, the new options offer more flexibility to customers than existing policies do.

It's my wife's 60th Birthday tomorrow.  The trip to Vegas with the girls is cancelled but I did ring up the Westin in Whistler to see if we could book a few days there.  As far as I can tell there are some operational issues at the Hotel due to COVID (no in restaurant dining) but nothing of real consequence preventing us from having a great time except the flight from YYZ.

(keep in mind mind I'm comparing that adventure to sitting at home in the burbs of YYZ watching House Hunters International)

Edited by Specs

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6 minutes ago, Specs said:

It's my wife's 60th Birthday tomorrow.  The trip to Vegas with the girls is cancelled but I did ring up the Westin in Whistler to see if we could book a few days there.  As far as I can tell there are some operational issues at the Hotel due to COVID (no in restaurant dining) but nothing of real consequence preventing us from having a great time except the flight from YYZ.

Isn't BC still sort of prohibiting/discouraging tourism from out of province?

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16 minutes ago, FA@AC said:

Isn't BC still sort of prohibiting/discouraging tourism from out of province?

Reservations (front desk) quizzed me - I answered honestly and made a point of saying I was from coming Ontario - She understood and she said I was good to go.

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The complete AC press release.

Air Canada Announces New Schedule Offering Customers Wide Choice of Destinations for Safe Travel this Summer and Expands Goodwill Policy

From Air Canada

air_canada_logo.jpg?w=1024
  • New summer schedule includes nearly 100 destinations in Canada, the U.S. and worldwide
  • Options for new, fully-transferable voucher or Aeroplan Miles with 65% bonus starting June 1 mean more choices and flexibility for rebooking flights should travel plans change
  • Air Canada CleanCare+ biosecurity program offers greater protection from COVID-19 during all stages of the journey

MONTREAL, May 22, 2020 /CNW Telbec/ – Air Canada is offering customers a choice of nearly 100 destinations in Canada, the U.S. and around the world with an abridged schedule this summer. To ensure customers can book with confidence, the airline has implemented the Air Canada CleanCare+ biosecurity program and is introducing new cancellation options retroactive to March 1, 2020, to give customers greater flexibility and choice should their travel plans change for any reason.  

“Air Canada has put in place an abridged summer schedule offering a choice of nearly 100 destinations across Canada, in the U.S. and internationally. As we emerge from the COVID-19 pandemic, during which as much as 95 per cent of our flights stopped operating and which has left us flying to less than half last year’s destinations, our customers are expressing their eagerness to travel,  where it is safe to do so. We are accordingly gradually opening for sale flights for the summer and beyond as we rebuild our network, leveraging our strong position as a global airline. Air Canada is ready for take-off, and we look forward to welcoming our customers onboard,” said Lucie Guillemette, Executive Vice President and Chief Commercial Officer at Air Canada.

“While the world is making great progress against COVID-19, we know we must remain vigilant, which includes being flexible. This is why we are introducing two new solutions for customers should their travel plans change. In addition to our regular goodwill policies, starting June 1 we will offer customers the choice of a travel voucher with no expiry date that is fully transferable or to convert their booking into Aeroplan Miles and get an additional 65% bonus miles. Both options, retroactive to March 1, give customers greater confidence and flexibility to plan and book travel with Air Canada,” said Ms. Guillemette.

“Finally, to further ensure the safety of our customers and employees, we have introduced Air Canada CleanCare+, a comprehensive biosecurity program to reduce the risk of the spread of COVID-19. Air Canada CleanCare+ works through multi-layered measures that limit unnecessary interactions, require the use of personal protective equipment and employ state-of-the-art cleaning techniques onboard our aircraft. We have further committed to adopt new strategies and technologies as they become available.”

Summer Schedule

Due to COVID-19, Air Canada has had to abridge its selling schedule for summer 2020, with 97 destinations down from 220 last year, which nonetheless offers wide opportunities for travel and connectivity. Within Canada, the schedule will increase from 34 routes in May to 58 routes in June, with more routes added in August and September.  Air Canada has also updated its schedule until the end of July with resumption of some services to the U.S., Caribbean, South American, European and Pacific markets.

As part of the new schedule, in accordance with provisions for air travel to the U.S. for Canadians, Air Canada will resume service to the U.S. on May 22, with six destinations being served by May 25, including New York-LaGuardia, Washington-Dulles, Los Angeles, San Francisco, Boston and Chicago. This is a reduction from 53 U.S. destinations served last year. There are tentative plans to resume more U.S. service as of June 22, pending regulatory changes and demand. For information on travel to the U.S. please see https://help.cbp.gov/s/article/Article-1596?language=en_US

Internationally, Air Canada will continue to operate from its major hubs to key global destinations in June. This includes service from Toronto to Frankfurt, London, Zurich, Tokyo and Tel Aviv; from Montreal to Frankfurt, London, Paris and Brussels; and from Vancouver to London, Hong Kong, Tokyo, and Seoul.

International services will expand further starting in June and early July, including: Montreal to Athens, Rome, Geneva; Toronto to Munich, Lisbon, Amsterdam, Rome and Athens; Calgary to Frankfurt; and, subject to government approval, Vancouver to Shanghai. 

Flexible Booking and Cancellation Policies

Under a revised goodwill policy, new bookings made up to June 30, 2020 can be changed without fees for original travel between March 1, 2020 and June 30, 2021.

In cases where Air Canada cancels flights due to COVID-19, customers with refundable tickets will continue to have the option of refunds. Since January 1, 2020, Air Canada has refunded nearly $1 billion to customers.  Both customers with refundable and non-refundable tickets will have two new options to choose from:

  • An Air Canada Travel Voucher for the remaining value of their ticket that has no expiry date, is fully transferable and retains any residual value or;
  • The ability to convert the remaining value of their ticket into Aeroplan Miles, with 65 per cent more value versus the normal rate for buying Miles.

For voluntary changes, customers with refundable tickets will continue to have the option of refunds or the above new options. For Air Canada customers with non-refundable tickets making voluntary changes on tickets issued up to June 30, 2020, with an original travel date between March 1, 2020 and June 30, 2021 inclusive, they have the option to choose from the two above new options of an Air Canada Travel Voucher or Aeroplan Miles.

The new goodwill policies and cancellation options are retroactive for customers with original travel between March 1, 2020 and June 30, 2021. Customers whose flights have been cancelled due to the impacts of COVID-19 and who have already received travel credit valid for 24 months, will be able to select one of the applicable options depending on their fare at aircanada.com beginning June 15, 2020. Customers with Aeroplan Flight Rewards can continue to cancel their redemption bookings free of charge through June 30, 2020. 

For more information on Air Canada’s pandemic response, including information about Air Canada ClearCare+ and its revised summer schedule and goodwill policies, please see aircanada.com/readyfortakeoff.

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4 hours ago, FA@AC said:

Isn't BC still sort of prohibiting/discouraging tourism from out of province?

As of yesterday, camp site bookings at provincial parks are open to BC residents only (but they will honour out-of-province bookings made before yesterday. The parks are opening for overnight camping on May 25th.

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1 hour ago, J.O. said:

As of yesterday, camp site bookings at provincial parks are open to BC residents only (but they will honour out-of-province bookings made before yesterday. The parks are opening for overnight camping on May 25th.

Thanks!

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6 hours ago, Specs said:

It's my wife's 60th Birthday tomorrow.  The trip to Vegas with the girls is cancelled but I did ring up the Westin in Whistler to see if we could book a few days there.  As far as I can tell there are some operational issues at the Hotel due to COVID (no in restaurant dining) but nothing of real consequence preventing us from having a great time except the flight from YYZ.

(keep in mind mind I'm comparing that adventure to sitting at home in the burbs of YYZ watching House Hunters International)

Gents (etc)....Look at the US "Rule" regarding the closure of the Can/US border....available on the DHS website. The restriction is of crossings at land border entries and ferries. Air travel is specifically excluded. I called DHS and they confirmed. NOTE.....The CBP agent at pre-clearance is the final authority but.....Air Canada may not be flying south but Delta and AA have a number of flights. My wife and I couldn't cross the border by car but went to YYZ and got a flight to Florida. No issues with pre-clearance.

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7 minutes ago, UpperDeck said:

Air Canada may not be flying south but Delta and AA have a number of flights. My wife and I couldn't cross the border by car but went to YYZ and got a flight to Florida. No issues with pre-clearance.

Friends of mine were similarly able to fly to AZ from YYZ.  CBP didn't even ask why they were travelling.  I forgot to ask what reason for their trip they checked off at the CBP kiosk.

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I wonder if people are checking with their Travel Insurance Provider?  When this mess started we were contacted and told we had 10 days to get out of the US and back to Canada.

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Our insurance provider (Medipac) gave us an extension on our travel insurance, we were supposed to be going on a cruise which was cancelled so we stayed longer in Arizona.

We bought an extension to April 21 but then AC stopped flying so we came back March 30. Medipac gave us a refund for the extension we didn't need.

Allianze? thru Sunlife gave people 10 days to get home. 

We will continue to use Medipac.

Now that there is a official travel advisory for everywhere no insurance will cover you for out of country costs.

 

 

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Air Canada Announces Offering of Shares and Convertible Senior Notes

 
 

 

 

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, May 26, 2020 /CNW Telbec/ - Air Canada (TSX: AC) (the "Company") today announced that it has commenced a marketed public offering of Class A Variable Voting Shares and/or Class B Voting Shares of the Company ("Shares") for gross proceeds of approximately C$500 million (the "Share Offering") and a concurrent marketed private placement of convertible senior unsecured notes ("Convertible Notes") for gross proceeds of approximately US$400 million (the "Convertible Notes Offering" and together with the Share Offering, the "Offerings").

The Company intends to grant the underwriters an option to purchase up to an additional 15% of the Shares in the Share Offering, exercisable in whole or in part at any time until 30 days after closing of the Share Offering and up to an additional 15% of the Convertible Notes in the Convertible Notes Offering, exercisable in whole or in part at any time until 13 days after closing of the Convertible Notes Offering. 

The Share Offering will be priced in the context of the market with the price and other final terms to be determined at the time of entering into an underwriting agreement for the Share Offering.

The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest payable semi-annually in arrears and will mature on July 1, 2025, unless earlier repurchased, redeemed or converted. The Convertible Notes will be convertible into cash, Class A Variable Voting Shares and/or Class B Voting Shares of the Company or a combination thereof, at the Company's election. The interest rate, initial conversion rate and other terms of the Convertible Notes will be determined at the time of pricing of the Convertible Notes Offering.

Completion of the Offerings will be subject to various conditions, including the approval of the Toronto Stock Exchange.

The Company intends to use the net proceeds from the Offerings to supplement the Company's working capital and other general corporate purposes. The net proceeds from the Offerings will serve to increase Air Canada's cash position, thereby allowing for additional flexibility both from an operational standpoint and in the implementation of its planned mitigation and recovery measures in response to the COVD-19 pandemic.

TD Securities Inc., J.P. Morgan Securities Canada Inc. and Citigroup Global Markets Canada Inc. are acting as joint active book-running managers for the Share Offering and J.P. Morgan Securities LLC, TD Securities Inc. and Citigroup Global Markets Canada Inc. are acting as joint active book-running managers for the Convertible Notes Offering.

The Shares offered in the Share Offering will be offered by way of a short-form prospectus in all provinces and territories of Canada and may also be offered in the United States to qualified institutional buyers pursuant to Rule 144A of the U.S. Securities Act of 1933 (the "Securities Act").

The Convertible Notes offered in the Convertible Notes Offering will be offered on a private placement basis and will not be offered by way of a prospectus in Canada. The Shares offered in the Share Offering and the Convertible Notes and Class A Variable Voting Shares and/or Class B Voting Shares of the Company issuable upon conversion of the Convertible Notes have not been, and will not be, registered under the Securities Act, or any state securities laws and may not be offered or sold in the United Statesexcept pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. The Convertible Notes will be offered to accredited investors in Canada and to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act.

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Layoff notices went out to FAs today.  The most junior left working will be at around the 20 year mark in seniority.

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How long do they recall rights extend for?

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1 hour ago, Specs said:

How long do they recall rights extend for?

5 years at mainline.  Less long at Rouge (I believe 2-3 years).

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