Air Canada to cut up to 60 per cent of jobs in bid to preserve cash

Airline says it is working with unions on how to implement measures

Air Canada is asking employees to either reduce hours, go on leave for up to two years or resign with travel privileges, according to the The Canadian Union of Public Employees. Reuters

Air Canada said on Friday it has decided to reduce its workforce by up to 60 per cent as it tries to save cash amid the Covid-19 pandemic and right size its operations to the level of traffic expected in the mid-to-longer term.

The airline is working with unions to implement these measures, it said in an emailed statement.

The Canadian Union of Public Employees (CUPE) said it is in the final process of negotiating mitigations and other matters with Air Canada and has no further comment at this time.

The union which represents Air Canada flight attendants said the airline is set to ask employees to reduce their hours, go on leave for up to two years or resign with travel privileges, the Canadian Press reported.

The health crisis has brought a virtual halt in air travel, leading to an unprecedented number of flight cancellations globally and forcing airlines to book hefty losses.