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AC Jazz deal details


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Attention News/Assignment Editors:

Jazz Unions Reach Agreement with Air Canada JAZZ on Restructuring Plan

TORONTO, May 24 /CNW/ - A coalition of Jazz unions are announcing

agreements with Air Canada Jazz that will start JAZZs' transformation to

Canada's low-cost airline.

The agreements were entered into as part of JAZZs' restructuring under

the CCAA process. Along with significant cost saving measures, they provide

that between 25 and 30 new jets in the 70 seat size range will be placed into

service at JAZZ as part of the company's fleet restructuring. JAZZ will be

unrestricted from operating jet aircraft with up to 75 seats.

Additionally, ALPA has indicated that they will submit a proposal to

operate larger jet equipment. The Court-appointed Monitor, Ernst & Young, has

agreed to design, implement and administer a process to allocate the larger

regional aircraft The present allocation is based upon restrictions currently

in place between Air Canada and the Air Canada Pilots Association's that will

expire in April 2004.

All of the unions involved in this process want to express their

satisfaction at reaching the agreements and wish to express their thanks to

Justice Warren Winkler. Justice Winkler was appointed by Mr. Justice James

Farley, who is presiding over the entire process to facilitate restructuring

discussions with the unions and was invaluable in assisting the parties in

reaching the agreements.

CAW-Canada President Buzz Hargrove stated: "This agreement is a first

step to ensuring the viability of our national airline. Air Canada Jazz

provides vital air service to over 70 communities across the country and

employs over 3,000 unionized workers. For the CAW, our three negotiating

committees will strongly recommend ratification."

Capt. Nick DiCintio, chairman of the Air Canada Jazz unit of the Air Line

Pilots Association, International (ALPA), issued the following statement

regarding the new pilots' agreement: "Our negotiating committee and ALPA staff

devoted a tremendous amount of time and energy to make this agreement a

reality. The current financially demanding circumstances at Air Canada and

Jazz that surrounded these negotiations created a make or break situation for

our team - either make a deal or let the chips fall where they may." The pilot

agreement includes pay rates that provide financial relief, a unique status

pay system, and numerous productivity enhancements. "All of us acknowledge the

extraordinary efforts of the many individuals who were able to come together

to make this agreement a reality," DiCintio said.

CALDA President Bill McCauley stated: "Our deal was painful in certain

areas. Both sides had to work hard to minimize the individual sacrifice.

However, the agreement represents the necessary steps both sides have to take

to ensure a positive future. Having accomplished this, we can recommend the

agreement for ratification. As always I would like to recognize the dedication

of our negotiating team.

CAW-Canada is Canada's largest private sector union with over 260,000

members, including 12,000 members in the airline industry. Its website is

www.caw.ca.

ALPA, the world's oldest and largest airline pilot union, represents

66,000 pilots at 42 carriers in Canada and the U.S. Its Web site is at

http://www.alpa.org.

CALDA represents the majority of Flight Dispatchers in Canada.

-30-

For further information: CAW CONTACT: Gary Fane, (416) 399-6524; CALDA

CONTACT: William McCauley, (403) 874-8118; ALPA CONTACT: Captain Vince

Charron, (613) 299-6964 (French), Captain Monty Allan (905) 467-1313

(English)

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I like the sounds of this:

Additionally, ALPA has indicated that they will submit a proposal to operate larger jet equipment.

And this:

The Court-appointed Monitor, Ernst & Young, has agreed to design, implement and administer a process to allocate the larger

regional aircraft

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Guest Touchdown

Just curious...what did ALPA give away to get the equipment. The press release says 48% decrease in costs...I presume some will be in the form of wage concessions and other in productivity. You got the equipment....but did you sell your soul ?

Not that I don't agree that we at AC mainline need to cut costs and increase productivity, but where does it all end ?

Mr T

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Guest jimmy

"Jazz will be unrestricted from operating aircraft up to 75 seats". This implies that ALPA had a restriction before. This is like ACPA getting a deal saying they are unrestricted from operating any of United's aircraft.

When they have a deal with ACPA for this that'll be news. That's where the restriction currently exists.

jimmy

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"When they have a deal with ACPA for this that'll be news. That's where the restriction currently exists."

I'm not sure ACPA or any other union involved with the AC family is in any position to dictate what/how/when any of these things will happen. I think it is all part of the take it or leave it factor.

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I'll bet that ACPA will offer $2 less. No, maybe $4 less! But as you know that's kinda how you got your for regional-sized aircraft years ago and on the very next contract up up up went those low wages.

I'll be surprized if this has not been mentioned to those 'new' to the proceedings, if you know what I mean.

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Guest JetJock YYZ

Actually they can leave it. As you recall Milton told ACPA to "take it"(the deal)or they would liquidate. That may be what he gets and how many aircraft do you think Jazz will operate with a bankrupt Air Canada? Jazz needs mainline to accept the deal as offered for the Jazz end to work. This is by no means a done deal!

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Guest CJRT

Maybe someone who has a better understanding of the proceedings could fill us in. As I understand it, "Air Canada" is operating as a new numbered company. The old Air Canada is under CCAA. The old AC Jazz is under a seperate CCAA. If terms between AC management and the AC unions can't be reached, the old AC mainline is liquidated. The Jazz filing is not affected. AC/Jazz management and Jazz unions work things out and the Old Jazz emerges as a new Ac/Jazz hybrid (made in China??). Hmmm, I'm beginning to get the same headache I used to get while doing calculus...could someone shed some light?

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The problem is how many mainline jobs will there be if ACPA says no. It doesn't sound as if there is a tomorrow, so 'no' can't be used as a negotiating ploy.

It sounds as if you are suggesting the possibility ACPA may say no just to defeat the JAZZ deal. Wouldn't everyone lose then?

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Guest Terminated

Keep in in mind that when you make a deal to fly an aircraft 50% larger, you have just increased efficiency by 50% also. The great deal is largely based on the fact that Jazz will fly bigger airplanes for the same money as they are currently making.

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"When they have a deal with ACPA for this that'll be news. That's where the restriction currently exists"

Your right,,, till the end of April 2004. The new a/c won't/can't show up until ACPA's current agreement runs it's course. After that the scope line has already been bought and sold . That's assuming it isn't changed prior to that.

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