Source: ATW Daily News Author: 07/04/2008
Subject Concerned: Airlines Human Resource
On Jul. 3, Jazz Air said that owing to planned fourth-quarter capacity reductions by Air Canada, with which it has a contract to operate regional flights, it will reduce its flying by 5% in the year's final three months and cut 270 employees.
AC said last month that it will reduce total system capacity by 7% year-over-year in this year's fourth quarter and the 2009 first quarter and slash its workforce by 2,000.
Jazz President and CEO Joseph Randell said those cuts necessitated that the regional follow suit.
"These are difficult times for our industry and the decision to reduce our workforce was not reached lightly," he said. "We are in a period of great uncertainty and cannot predict where the price of fuel is going."
In order to offset fuel costs, Jazz has frozen all hiring and eliminated "non-critical" staff overtime.