Features Operations
Major Canadian Carriers Feel the Pain

On September 11 the face of commercial aviation was changed forever
when a group of extreme terrorists turned four commercial jetliners
into weapons of mass destruction, flying two of them into the heart of
America's financial district in New York City and one of them into the
heart of its military war machine near Washington. The fourth aircraft,
believed possibly to have been heading for the White House, crashed in
rural Pennsylvania.

The
impact was powerfully felt in Canada. Air Canada is slashing 5,000 more
jobs from its workforce, grounding 84 aircraft and reducing overall
capacity by 20 percent in the aftermath of the terrorist attacks. The
5,000 job cuts announced are in addition to the 4,000 that the carrier
announced in August. The news came the day after Transport Minister
David Collenette released Air Canada from its commitment to no layoffs
until March 2002.

The cuts will come from both Air Canada and
Air Canada Regional. Of the 5,000 new job cuts, 1,000 will come from
the regional arm. "Layoffs are not the first choice – they are a last
resort," said Air Canada CEO Robert Milton. "This is a very difficult
announcement to make to the dedicated team of women and men who make
this airline work. But the catastrophic events of September 11 and
their unprecedented impact on the airline industry have left Air
Canada, like every other large global carrier, with little choice. It
is our hope that with the temporary nature of these job reductions, we
will be able to recall laid-off employees when business improves
again."