Air-Canada has announced that it will lay off at least 16,500 of its employees due to coronavirus.
The Montreal-based airline stated that it will also reduce its operations by 90 percent in the second quarter due to the adverse effects the coronavirus has had on business.
Making the announcement on Monday, March 30, 2020, the airlines said that the new decisions which will be effected from April 3, 2020, will affect about 15,200 employees and 1,300 managers.
According to the Airline’s website, the company had employed over 36,000 people globally but will have to make the decision to salvage the business during this tough economic period.
“The unpredictable extent and duration of the COVID-19 pandemic require a significant overall response,” said Air Canada President Calin Rovinescu.
“To furlough, such a large proportion of our employees is an extremely painful decision but one we are required to take given our dramatically smaller operations for the next while.”
The Airlines which was the first to feel the hit of Coronavirus had earlier announced to lay off 5,100 flight attendants. The number included 1,500 employees of Air Canada Rouge, which is the airline’s low-cost subsidiary.
In order to reduce cost, Air Canada announced that it will introduce a cost reduction program which it expects to generate 500 million dollars.
The airline’s president and the chief financial officer will give away all their salaries (100 percent) while senior executives will give some part of their salaries ranging from 25 to 50 percent.
Earlier, Air Canada had canceled its international flights. Flights to the US were also canceled after the US introduced a temporary closure of the border to reduce the spread of Covid-19.
Flights within Canada have also reduced from 62-40 due to minimized movements in the country.
Other airlines Air Transat and Porter Airlines have completely halted their flights due to the pandemic.
WestJet has seen 6,900 departures including early retirements, resignations, and both voluntary and involuntary leaves to reduce the effects of the covid19 on the business.