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AC may pay price for government intervention

Oct. 17, 2011, Toronto - Some airline analysts say Air Canada may pay a long-term price by the Harper government's intervention in the flight attendants dispute.


October 17, 2011
Carey Fredericks

One analyst says the airline's efforts to improve its corporate culture may be undermined by the referral of the dispute to the Canada Labour Relations Board.

Robert Kokonis of the airline consulting firm AirTrav says it sets a bad tone between the company, its unions and its workers.

He says it doesn't bode well for negotiations with the airline's other unions — the pilots and machinists have yet to reach deals.

Kokonis also says the damage to Air Canada's reputation may prompt potential customers to opt for alternative carriers.

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And he says the 68-hundred flight attendants may have a few ways of causing further troubles.

Kokonis says they could take job action such as calling in sick and refusing to be flexible on their work hours.