Westjet to lay off workers amid virus pandemic
Westjet Airlines Ltd. says it is cutting jobs after the Government of Canada advised against non-essential travel outside the country and restricted overseas flights to land only at a small number of airports.
More than half of its flight attendants may be laid off as customers cancel flights en masse, according to an internal memo sent to CUPE 4070, the union that represents the airline’s cabin crews, and obtained by The Canadian Press.
That volume of layoffs is one of several options, Mark Porter, Westjet’s executive vice-president of people and culture, said in an emailed statement Friday.
Westjet’s first option is for staff to consider voluntary leaves, unpaid vacation or reduced work time. It’s also looking at reducing contractors, pausing capital projects and asking vendors for price cuts.
“The current situation is unprecedented and has escalated rapidly in the past week,” Porter said.
“Unfortunately, we also have no alternative but to reduce the number of employees.”
Canadians airlines, already walloped by the COVID-19 crisis, are expected to take a further, massive financial hit amid Canada’s travel restrictions to rein in the virus.
Under the new government rules, the vast majority of international travel is expected to dry up in the short-term. It’s not yet clear what airports will be allowed to accept international flights, or whether “international” includes flights from the United States since such flights are typically classified as “transborder.”
Transport Minister Marc Garneau also announced enhanced screening for incoming passengers.
Regardless of the final details, airlines are in for financial trouble given their exposure to international and U.S. markets.
“It’s so big it’s hard to comprehend,” aviation consultancy Airtrav Inc. president Robert Kokonis said. “They’re going to require some government intervention or government support.”
While groundings will reduce operating costs including fuel, landing fees and navigation fees, airlines will be stuck with fixed costs such as aircraft leases and salaries.
Airlines were already dealing with fallout from the grounding of the Boeing 737 Max aircraft, which regulators ordered parked exactly one year ago.
Canada’s restrictions come during spring break. Airlines were slammed Friday as passengers scrambled to cancel travel plans.