Air Canada share up following arbitrator’s decision
July 31, 2012, Toronto - Air Canada shares are up more than eight per cent after an arbitrator sided with the airline in its labour dispute with its pilots, clearing the way for Air Canada to launch a low-cost carrier.
July 31, 2012 By The Canadian Press
The airline's shares were up nine cents to $1.17 on the Toronto Stock Exchange in early trading.
A federal arbitrator chose Air Canada's final offer Monday, ending 19 months of negotiations between the airline and the union representing its pilots.
The airline has said the five-year collective agreement, effective until April 2016, will give the company the flexibility it needs to compete.
But the Air Canada Pilots Association says the decision will anger pilots and drag on the airline's future performance.
Air Canada has tried the discount route before with its launch of the now-defunct Zip Airlines.
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