Air Canada slashes jobs, flights – Yukonwolf rite | Debbie's Caribbean Resort Reviews Forums

Yukon recently posted about US airlines cutting flights and some questioned how it would affect us flying to Cuba. It appears we won’t escape the cuts and prices may be higher for our trips. (although I haven’t flown AC to cuba myself).Air Canada slashes jobs, flightsThe Canadian PressJune 17, 2008 at 9:23 AM EDTMONTREAL — Air Canadawill cut up to 2,000 jobs at the end of this year as it sharply reduces capacity to deal with the rising cost of fuel, and is warning there are likely more cutbacks to come.Canada’s biggest airline said Tuesday it needs to fly fewer trips as oil prices keep rising to record levels and will cut capacity by 7 per cent from its fall and winter schedule.Fewer flights mean the airline will require less staff to operate across all levels of the organization, the company said.“The loss of jobs is painful in view of our employees’ hard work in bringing the airline back to profitability over the past four years,” president and chief executive Montie Brewer said in a statement.Air Canada Air Canada cuts jobsCTV’s Jed Kahane discusses carrier’s announcement that it will slash 2,000 jobs, reduce capacity “I regret having to take these actions but they are necessary to remain competitive going forward. Air Canada, like most global airlines, needs to adapt its business and reduce flying that has become unprofitable in the current fuel environment,” he said.“If fuel prices remain at current levels, we can anticipate further capacity reductions.”Air Canada says that every time oil increases by $1 per barrel, it costs the airline an additional $26-million a year. The company spends more on fuel than any other expense, representing more than 30 per cent of its total operational spending.With oil over $133 (U.S.) a barrel, the airline estimates it will shell out almost $1-billion more in 2008 than in it did in 2007. It says the average cost of taking one passenger on a round trip has increased to $230, from $146 in 2007 and $110 in 2004.It also blames federal and provincial fuel excise taxes, security fees and airport charges “that are amongst the most expensive in the world today” as roadblocks to profitability.Air Canada plans to slash domestic capacity in the fourth quarter of this year and first quarter of 2009 by 2 per cent, U.S. transborder capacity by 13 per cent and international capacity by 7 per cent, for a total of 7 per cent across its system.Among routes being jettisoned are the previously announced suspension of Toronto to Rome non-stop service — although that will remain for the high-traffic summer season — and the elimination of non-stop service from Vancouver to Osaka, Japan.With the reductions, Air Canada expects to see full-year capacity growth between 1 per cent and minus 1 per cent. It had originally forecast growth between 1 and 2.5 per cent over 2007 levels.Recommend this article? 28 votes

martian Guest

As was mentioned by Rumrunner, airline ticket prices have held steady for far too long.We’ve been spoiled for years with ridiculously cheap flights. It’s mind boggling how low the dollar cost per kilometre has been to this point.Fuel prices (and several other lesser factors) are finally giving us a cruel wake-up call that’s long overdue. It’s a different world now and it’s time to get used to it.

Anyone who is surprised by this has been living on a different planet.

As was mentioned by Rumrunner, airline ticket prices have held steady for far too long.We’ve been spoiled for years with ridiculously cheap flights. It’s mind boggling how low the dollar cost per kilometre has been to this point.
What’s also mind boggling is how cheap the entire package to an AI has been. You literally cannot vacation at home for this kind of money. I’ve had trips this year that cost less than $500 for a week, AI, taxes included…..the price of a hotel only (no food, no drink, no transport) in most big cities here for a long weekend! Although the really cheap deals are usually to lesser starred resorts, the under $500 per week can be had at some 4 stars on a 2 week deal. Unbelievable! (and I’m really, really going to miss being "spoiled"!)

	Airline tickets have indeed stayed steady… but I don’t think we ever saw a lowering in vacation prices reflecting the much stronger canadian dollar. Whomever has been gouging us on the much stronger dollar better think about giving some back to keep package prices in range.

What’s also mind boggling is how cheap the entire package to an AI has been. You literally cannot vacation at home for this kind of money. I’ve had trips this year that cost less than $500 for a week, AI, taxes included…..the price of a hotel only (no food, no drink, no transport) in most big cities here for a long weekend!

I totally agree with you. We haven’t taken a week’s vacation in Canada or the USA because it just doesn’t make any financial sense to do so. How could one possibly turn down a trip to an AI at remarkable prices when the same amount of money might only pay for just the 3 or 4 nights at a hotel here at home?! DOH. I am just amazed that more people don’t know about this. Surely if they did, many of our favourite resorts would be over-crowded. Maybe it’s a good thing that the word isn’t out yet about this. However, as this thread indicates, our "cheap" holidays are, indeed, coming to an end anyway. Sigh.

Northgal

I guess "cheap deals" to Cuba depends on where you live in Canada and the time of year you travel. Since all our trips have been expensive, I’m not expecting anything else for our next :'(. I’ve been dying to see the packages out of Vancouver for next winter (January) but haven’t seen much of anything yet. Our last trip (2 weeks) was $5900.00, for the package, so I’m expecting it to be over $6000 this next trip!

I have a $200 voucher towards another trip so, hopefully, it will offset all or most of any increase.

	I can tell you that here in Nova Scotia we do not see deep discounted packages that you people in Ontario see. I have a limit to what I will spend on a tropical vacation. When the prices get to that amount I will find other places to vacation. I think I will be taking a couple more trips.

	Just booked and, not surprising, prices are up. We go at the same time to the same place, each year so it’s easy to compare and, just like previous years, the cost is up 8%. With the way the Cdn $ is tumbling, this might be a good year to book early! It will be interesting to see how prices pan out over the next few months as we move into people booking for high season.

	Prices up, economy and people’s income down. They may have to cut supply even more to meet the declining demand. IF prices remain where they are we simply won’t go South in the middle of Winter when we usually do. Off to Florida this week though with a good selloff. No one HAS to fly, it’s discretionary. There are other ways to spend our money…but it is nice to get away in Winter.

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