Air Canada puts 16,500 staff on furlough, cuts operations

Air Canada will cut capacity by as much as 90% next quarter and temporarily reduce its workforce by about 16,500 to reduce costs during the coronavirus crisis. The decision, effective on or around April 3, puts 15,200 unionized employees on “off-duty status” while 1,300 managers will also be furloughed, the airline said Monday. The company said the cuts were required because of the “dramatically smaller operations” resulting from travel restrictions worldwide. “It will help ensure that Air Canada can manage through this crisis that is affecting airlines everywhere,” CEO Calin Rovinescu said. The reductions, along with other measures, “will position us to restore regular operations as soon as the situation improves.” Canada’s biggest airline built a cash stash that puts it at an advantage in the current turmoil, analysts have said. The company has enough liquidity to meet financial obligations, TD Securities analyst Tim James wrote on March 27 after a call with management. “The conservative approach to how the balance sheet was managed prior to the downturn is benefiting the company today, and management is working towards exiting this crisis as strong as the company entered it,” James wrote.<br/>