By Don Douloff, June 19, 2008
Record high fuel prices have hit home in a big way, as Air Canada has announced a plan to reduce overall seat capacity by 7 per cent in the fourth quarter of 2008 and first quarter of 2009. In turn, that will force job cuts, with up to 2,000 positions scheduled to be eliminated across all levels of the airline.
In the fourth quarter 2008 and first quarter 2009, Air Canada plans to reduce domestic capacity by 2 per cent, U.S. transborder capacity by 13 per cent and international capacity by 7 per cent.
Flight reductions include the suspension of Toronto-Rome non-stop service (with resumption planned for the peak summer season) and the withdrawal of Vancouver-Osaka non-stop service, effective October 26.