Air Canada has made changes to its business plan, citing the unprecedented impact on the entire airline industry of the tragic events of September 11, 2001.
Air Canada plans to reduce its transborder flight schedule by 20 per cent, in keeping with capacity reductions of the large American carriers. Meanwhile, it will continue to monitor demand on domestic and international routes before deciding on any further capacity or employee reductions.
Due to the current and expected dramatic fall off in revenues in September, the airline says it will now experience a loss for the third quarter.
“Like people in every corner of the world, we have spent recent days reeling from the horrible destruction and loss of life wreaked on September 11. At the same time, our entire team has been working flat out to assist the hundreds of international flights diverted to Canada and to get our own network up and running. In addition, as safety is our number one priority, we have implemented enhanced security measures
throughout the network and are working closely with Transport Canada to ensure
full compliance,” said Air Canada CEO Robert Milton.
IATA has initially estimated the economic cost of the current crisis tothe airline industry at CAD $15 billion.
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