Air Canada (AC, Montréal Trudeau) has announced drastic cuts to its domestic Canadian network as it grapples with reduced demand brought on by the COVID-19 pandemic and its corresponding government-imposed travel restrictions.
In a statement, the carrier said it would close the following routes until further notice as per applicable regulatory notice requirements:
Maritimes/Newfoundland and Labrador:
- Deer Lake, NL–Goose Bay;
- Deer Lake–St. John's;
- Fredericton–Halifax;
- Fredericton–Ottawa International;
- Moncton–Halifax;
- Saint John–Halifax;
- Charlottetown, NL–Halifax;
- Moncton–Ottawa;
- Gander–Goose Bay;
- Gander–St. John's;
- Bathurst, NB–Montréal Trudeau;
- Wabush–Goose Bay;
- Wabush–Sept-Îles;
- Goose Bay–St. John's.
Quebec/Ontario:
- Baie Comeau–Montreal;
- Baie Comeau–Mont Joli;
- Gaspé–Îles de la Madeleine;
- Gaspé–Québec;
- Sept-Îles–Quebec City;
- Val d'Or–Montreal;
- Mont Joli–Montreal;
- Rouyn–Val d'Or;
- Kingston, ON–Toronto Pearson;
- London, ON–Ottawa;
- North Bay–Toronto;
- Windsor–Montreal.
Western Canada:
- Regina–Winnipeg International;
- Regina–Saskatoon;
- Regina–Ottawa;
- Saskatoon–Ottawa.
It will also close its offices at the following regional airports:
- Bathurst, NB (New Brunswick);
- Wabush (Newfoundland and Labrador);
- Gaspé (Quebec);
- Baie Comeau (Quebec);
- Mont Joli (Quebec);
- Val d'Or (Quebec);
- Kingston, ON (Ontario);
- North Bay (Ontario).
Additional route closures remain possible going forward.
In a follow-up statement, Chorus Aviation, whose Jazz Air (QK, Halifax) subsidiary operates all the routes above for Air Canada under the Air Canada Express brand, said only that it respects and understands the difficult choice Air Canada has had to make. However, it reminded the carrier that under their Capacity Purchase Agreement (CPA), Jazz's compensation does not vary with flight activity and remains unchanged with the announcement.
As a result of the COVID-19 pandemic, Air Canada posted a net loss of CAD1.05 billion Canadian dollars (USD770 million) in the first quarter of 2020. Given it does not foresee a return to pre-COVID levels of demand any sooner than 2023, to curb any further haemorrhaging of cash, the airline has undertaken a series of structural changes including the removal of 50% of its staff or approximately 20,000 employees, the permanent removal of 79 aircraft from its mainline and Air Canada rouge (RV, Toronto Pearson) fleets, and a company-wide cost reduction and capital deferral program that has to date identified around CAD1.1 billion (USD800 million) in savings.
