Air Canada's COVID-19 actions


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For those directly affected by these very difficult decisions as well as those now looking over their shoulder... Having seen a bit of this in a previous life, this too, shall eventually pass to

After reading this thread my thoughts went back 20 years to a recorded telephone message, from Robert Milton, to all employees explaining the Canadian Merger.  His explanation to employees was the Fed

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So 66 % of the population is obese, and 60 % of the people in intensive care are obese. 🤔..,

 So where is the story? 

 

The point is,  modifying your BMI doesn't change your chances of ending up in the hospital. (According to those statistics). Although changing your gender to female seems like a good idea. 

Sensational journalism. I guess it works if you don't read the whole article .

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1 hour ago, mrlupin said:

50-53%  ACM staff reduction. Notices are out today.

Thanks mrlupin. Here’s hoping it won’t last too long. 😞
Any options for job sharing to mitigate the lay-offs?

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12 minutes ago, Marshall said:

So 66 % of the population is obese, and 60 % of the people in intensive care are obese. 🤔..,

 So where is the story? 

since 3 out of 5 Canadians are over weight, the field is open.  No matter the age....You do have to consider the high death rate in Italy and Spain, folks who have always be held up as being in relative good health (REMEMBER THE MEDITERRANEAN DIET ADVANTAGE?_)

 

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1 hour ago, conehead said:

Thanks mrlupin. Here’s hoping it won’t last too long. 😞
Any options for job sharing to mitigate the lay-offs?

I think the union was pushing for it however, from the info I have now the employer was either not interested or did not have the time to look into it.

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Just now, mrlupin said:

I think the union was pushing for it however, from the info I have now the employer was either not interested or did not have the time to look into it.

I’m hearing the guys are on “off duty” status, which is a temporary layoff with no bumping rights. Seems that ALL the Avionics guys are laid off at the “B” stations... some have over 20 years seniority.

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That sounds right, they really went Martial law on this one... It will have consequences down the road since seniority rules were not followed and I doubt those clauses can be invoked indefinitely.

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On 3/21/2020 at 2:17 PM, dagger said:

Historically, the Canadian government has never ponied up the kind of big bailout cash for airlines that the US does, and will. We already see United, for example, jockeying for cash, telling employees they may be laid off if the government doesn't come up with a big bailout. Now ask yourself, if UA gets a lot of cash, without strings, is it really going to keep on the 70% of its staff with nothing to do? That would be an extraordinarily stupid use of bailout cash because if this proves to be a long slow recovery, the airline would run out of cash paying tens of thousands of employees over months to stay at home. So linking continued employment to a bailout is BS. That why Canadian carriers are moving aggressively on layoffs, likely work sharing for the rest, etc. They know the government isn't going to make them whole. This will be a substantial money losing year for all Canadian carriers, no matter what relief they get from the feds. In all likelihood, the help that comes will be in any form but no-strings cash. It might be loans, deferrals, perhaps rebates that convert into tax liabilities that will reduce future profitability, etc etc. Its unlikely that airlines will get enough help to make them attractive for a takeover, just less of a dog under current circumstances. 

By the way I love our airlines, but I subscribe to the notion that sometimes, because of crappy factors like pandemics or volcanoes or terrorists, airlines will have bad years financially. That's the nature of the business. The government in this case should probably offer help, but not so much to make up for all the lost profitability. There will be very good years ahead, there is going to be a lot of pent-up demand to visit relatives and be tourists again, and all those business conferences and trade shows will be much more useful to go to for having been cancelled in 2020. And while some people are obviously being hurt financially, a lot of others have nothing to spend money on - prime candidates to reward themselves with a trip once things move back towards normal. Remember, the 1918-19 Spanish flu was followed by the Roaring Twenties. That's why I think the massive bailouts US airlines want - and may get - are nuts. Let the money go to people, let the airlines have enough to stay solvent and solid with the expectation that they will make back all their losses - and more - starting next year.

Well I don't personally "remember" 😀 the Flu pandemic of 1918 that inappropriately has been dubbed "Spanish Flu" because unlike the recent pandemic that very clearly started in a country with high number of wet markets, that did not start in Spain. At any rate, I digress. I have heard of it and the roaring 20s of course!! Jokes aside, I too believe that this recession will be a sharp V and the economy comes roaring back.

Regarding this merger though, I believe the political landscape has substantially changed and even though the Liberals have traditionally been partial towards Air Canada, in this case, especially with the devastation of oil industry in Alberta, the Liberals have to tread carefully not to appear alienating the West even more. Therefore, it is unlikely that there will be substantial leniency from the government, if anything the opposite, and Air Canada will either have to make this deal work on its own cash, or walk away from it, possibly using the report as an excuse.

There is of course the possibility of more consolidation in the market and time will tell how much damage the China Virus has caused the industry.

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1 hour ago, MD2 said:

the Flu pandemic of 1918 that inappropriately has been dubbed "Spanish Flu"

This was at the end of WW1 and all of the other European nations had very strict censorship of their newspapers.  The news reports came out of Spain so thus "Spanish Flu".

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45 minutes ago, Fido said:

This was at the end of WW1 and all of the other European nations had very strict censorship of their newspapers.  The news reports came out of Spain so thus "Spanish Flu".

My grandmother was a victim in 1917, she died at an early age leaving my Father (WHO WAS 5) and his siblings in the Cypress Hills of Sask, my grandfather survived. She was, as most women were, helping to take care of those who had come down with the flu.

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15 hours ago, Fido said:

This was at the end of WW1 and all of the other European nations had very strict censorship of their newspapers.  The news reports came out of Spain so thus "Spanish Flu".

My point exactly! It should not be referred as that, whereas it is quite appropriate to call the recent pandemic the "China" or "Wuhan" virus.

As such, when the situation is under control, the rest of the world would be well within its right to seek closure of wet markets in China and other Asian countries in an effort to bring themselves in line with modernity as a condition of continued business and relationship.

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I saw elsewhere that China is already moving to address the wild meat / wet market issue. Making law is one thing, addressing their food insecurity problem and changing their food habits and culture won’t be as easy.

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By my observation it's less of a matter of food supply and more to do with superstition in that part of world and "special powers" of things. Look at ivory illegal trade and how almost every piece of smuggled ivory ends up on some shelf in China. It's really sad and a new, perhaps government sanctioned, education and illumination is required to free the masses from the shackles of dogma and superstition.

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On 3/28/2020 at 5:18 PM, MD2 said:

By my observation it's less of a matter of food supply and more to do with superstition in that part of world and "special powers" of things. Look at ivory illegal trade and how almost every piece of smuggled ivory ends up on some shelf in China. It's really sad and a new, perhaps government sanctioned, education and illumination is required to free the masses from the shackles of dogma and superstition.

Yes, that's it.  Good luck changing the beliefs of a billion people about TCM however.

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Air Canada Provides Update in Response to Covid-19


NEWS PROVIDED BY

Air Canada 

Mar 30, 2020, 16:25 ET

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MONTREAL, March 30, 2020 /CNW Telbec/ - Air Canada said today that due to the unprecedented impact of Covid-19 upon its business, the airline will reduce capacity for the Second Quarter of 2020 by 85%-90% compared to last year's Q2 and will place 15,200 members of its unionized workforce on Off Duty Status and furlough about 1,300 managers. The workplace reductions will be effective on or about April 3 and are intended to be temporary.

"The unpredictable extent and duration of the Covid-19 pandemic requires a significant overall response.  To furlough such a large proportion of our employees is an extremely painful decision but one we are required to take given our dramatically smaller operations for the next while.  It will help ensure that Air Canada can manage through this crisis that is affecting airlines everywhere. We believe that the temporary nature of these reductions, many achieved through voluntary programs, combined with other mitigation measures, will position us to restore regular operations as soon as the situation improves," said Calin Rovinescu, President and Chief Executive.

"I understand and regret the impact this will have upon our employees and their families. I thank all of our employees, as well as union leaders, for working with us constructively to quickly implement these measures".

In addition to the temporary workforce reductions, other measures implemented by Air Canada include:

  • A company-wide cost reduction and capital deferral program, targeting at least $500 million.
  • Drawing down operating lines of credit of approximately $1 billion, to provide additional liquidity.
  • Mr. Rovinescu, Air Canada's President & Chief Executive Officer, and Michael Rousseau, Air Canada's Deputy Chief Executive and Chief Financial Officer, have agreed to forgo 100% of their salary. Senior Executives will forgo between 25% - 50% of their salary while members of Air Canada's Board of Directors have agreed to a 25% reduction. All other Air Canada managers will have their salaries reduced 10% for the entire Second Quarter.
  • Air Canada suspended its share repurchase program effective March 2, 2020.

Earlier today, the Prime Minister of Canada announced a new wage subsidy program the details of which will be communicated later in the week and Air Canada will assess the impact of this on its mitigation plans. In addition, the Prime Minister also publicly acknowledged that the crisis faced by industries such as airlines will need additional help beyond wage subsidy and loan credit measures already announced by the federal government.

Subject to further government restrictions, while the crisis is ongoing Air Canada intends to continue to serve a small number of international and U.S. trans-border destinations from select Canadian cities after April 1, 2020 in addition to a reduced network in Canada.  In addition, Air Canada will also continue to operate special international flights in collaboration with the Government of Canada to repatriate Canadians abroad as well as cargo-only flights to ensure the continued movement of essential goods, including medical supplies.

Information about Air Canada's Covid-19 response including all schedule changes can be found at www.aircanada.com

About Air Canada

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On 3/29/2020 at 7:34 PM, seeker said:

Yes, that's it.  Good luck changing the beliefs of a billion people about TCM however.

Well I wasn't suggesting that. No lasting and meaningful change will come through force.

There already appears to be glimmers of hope in some cities in China that people are beginning to see that perhaps eating all walks of life and worse yet, mixing them together in rusty cages and power-washing their urine and feces into other old rusty cages is probably not very sanitary or smart!

The change, like this one, has to come from within and through education. They can learn from this, SARS, MERS, H1N1, etc. In the meantime, the rest of the world can have the resolve to condition their relationship and trade upon a common standard of life. If they do it for enriching uranium, they can do it for preserving nature and animals too.

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