Air Canada rips Trudeau over rules, may cancel plane orders

Air Canada escalated a fight with the government of PM Justin Trudeau over the country’s stringent travel rules, threatening to suspend more routes and cancel orders of locally made planes. CEO Calin Rovinescu lambasted the government during the airline’s Q2 earnings call Friday, saying that current restrictions -- especially a mandatory 14-day quarantine for all travellers coming into Canada, regardless of origin -- are preventing a recovery. Among top global competitors, Air Canada is at an additional disadvantage because the government opted against airline-specific financial aid, he said. “Without government industry support and as travel restrictions are extended, we’ll look at other opportunities to further reduce costs and capital, including further route suspensions and possible cancellations of Boeing and Airbus aircraft on order,” Rovinescu said. That includes the A220, the former Bombardier jetliner taken over by Airbus that is manufactured in Quebec, he added. The salvo is the latest display of growing tensions as airlines ask to loosen travel restrictions that have changed little since March, even as the Covid-19 outbreak eases in Canada. Trudeau has retorted that he’s putting safety first. “Canada needs to find a responsible way to coexist with Covid-19 until there is a vaccine,” Rovinescu said. The company said revenue dropped 89% in Q2 and expects capacity to be down 80% in Q3 from a year ago. Previously it had anticipated a 75% capacity drop. The industry will take at least three years to recover and will shrink, the airline predicted.<br/>