Air Canada to suspend flights on 30 domestic routes

Air Canada said on Tuesday it would suspend flights on 30 domestic routes hit by persistent weak travel demand due to the COVID-19 pandemic.

Canada’s largest carrier forecast third-quarter capacity would decline at least 75 per cent from a year ago and warned that travel restrictions and border closures triggered by the pandemic were dimming prospects for a near- to midterm recovery.

The carrier’s decision “will be very disappointing to the residents and communities affected by these service cuts,” Canadian Minister of Transport Marc Garneau said in a statement.

“We understand this will have an impact on many Canadians across the country.”

Air Canada said it has reduced its workforce by about 20,000 employees, which represents more than 50 per cent of its staff, and has permanently removed 79 aircraft from its fleet.

Air Canada added that it was closing eight stations at regional airports in Canada.

As part of a cost reduction and capital deferral program,

Air Canada said it has identified around $1.1 billion in savings to date.

Fourteen routes in Atlantic Canada will be suspended indefinitely, including Fredericton-halifax, Moncton-halifax, Saint John-halifax and Charlottetown-halifax.

Affected customers will be contacted by Air Canada and offered options, including alternative routings where available.

Of the 30 discontinued regional routes, 21 are operated by Jazz Aviation LP, and the eight stations closing at regional airports are managed by Jazz.

“The COVID-19 crisis and provincial and federal government-imposed travel restrictions and border closures are having a significant negative effect on passenger demand for Canadian air travel,” said Joe Randell, president and chief executive officer of Chorus Aviation Inc., in a news release issued Tuesday.

“I am saddened by the impact today’s announcement will have on our employees, suppliers and the affected communities, but respect and understand the difficult choice our partner, Air Canada, has had to make.”

Halifax-based Chorus’s Jazz operation and Air Canada have a capacity purchase agreement that extends through the end of 2035. Air Canada purchases practically all of Jazz’s fleet capacity and pays fixed margin fees, performance incentives and compensation for operating costs, including aircraft lease rents, and makes all marketing decisions.

Chorus said in its release that Jazz’s compensation does not vary with flight activity and remains unchanged with Tuesday’s announcement.