Air Canada Discontinues Service on 30 Domestic Regional Routes and Closes Eight Stations in Canada
Regional flying rationalized due to COVID-19 and government travel restrictions, part of airline's Cost Reduction Program to reduce cash burn
MONTREAL, June 30, 2020 /CNW Telbec/ - Air Canada said today that it is indefinitely suspending service on 30 domestic regional routes and closing eight stations at regional airports in Canada.
These structural changes to Air Canada's domestic regional network are being made as a result of continuing weak demand for both business and leisure travel due to COVID-19 and provincial and federal government-imposed travel restrictions and border closures, which are diminishing prospects for a near-to-mid-term recovery.
As the company has previously reported, Air Canada expects the industry's recovery will take a minimum of three years. As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate.
A full list of route suspensions and station closures is below.
As a result of COVID-19, Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net cash-burn in March of $688 million. The carrier has undertaken a range of structural changes including significant cost savings and liquidity measures, of which today's announced service suspensions form part. Other measures include:
Further initiatives are being considered.
The following routes will be suspended indefinitely as per applicable regulatory notice requirements. Affected customers will be contacted by Air Canada and offered options, including alternative routings where available.
Maritimes/Newfoundland and Labrador:
The following are the Regional Airports where Air Canada is closing its stations:
About Air Canada
Air Canada is Canada's largest domestic and international airline. Canada's flag carrier is among the 20 largest airlines in the world and in 2019 served over 51 million customers. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax, which also named Air Canada the 2019 Best Airline in North America. For more information, please visit: aircanada.com/media, follow @AirCanada on Twitter and join Air Canada on Facebook.
SOURCE Air Canada
Company Codes: OTC-QX:ACDVF, Toronto:AC
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