Air Canada lays off 5,000, Airbus gets loan to endure crisis
Air Canada is laying off more than 5,000 flight attendants as the country’s largest airline cuts routes amid plunging demand. The Montreal-based carrier is laying off about 3,600 employees, plus 1,549 flight attendants at its low-cost subsidiary Rouge, according to Wesley Lesosky, head of the Air Canada component of the Canadian Union of Public Employees. The layoffs will take effect by April and affect roughly 60% of flight attendants. Air Canada says it will suspend most of its international and US flights by March 31. The carrier says employees will be returned to active duty status once flights resume.
The United Arab Emirates is suspending passenger transits through Dubai, the world’s busiest international airport, for two weeks to help stop the spread of the coronavirus. Suspending transit through Dubai, which connects Europe with Asia and Australia, will affect travelers around the world.
Airbus is canceling a planned dividend payment and lining up 15 billion euros ($16 billion) in new credit to give the European aircraft giant more cash to weather the crisis. Airbus The plane maker is withdrawing the proposed 2019 dividend payment of 1.8 euros ($1.9) per share will save the company 1.4 billion euros ($1.5 billion).
Airbus is also making pension savings and says it has significant liquidity to cope with the crisis. It had shut several plants last week to adapt them to safer health conditions. (AP)