Air Canada is halting flights on 30 domestic routes and closing operations at eight regional airports as demand for fares remains weak amid travel restrictions due to COVID-19.
Air Canada said it will close regional airport operations that include Bathurst, N.B., Kingston, Ont., and Gaspé, Que. Routes that will be suspended indefinitely include Moncton-Halifax, Windsor-Montreal, and Regina-Winnipeg.
These structural changes to Air Canadas 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, Air Canada said.
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Canadas largest airline has laid off 20,000 people more than half its staff and grounded more than 200 planes as it lost $1-billion in the first quarter, when governments closed borders and imposed quarantines on travellers to slow the deadly virus. Air Canada has reduced its schedule by 85 per cent, and said travel demand will not recover to 2019 levels for three years.
Air Canada and other tourism and hospitality companies have mounted a lobby effort to push governments to loosen the travel restrictions they say are hampering any economic rebound and costing thousands of jobs.
Public health officials say the restrictions are needed to limit the spread of COVID-19, keep people healthy, and reduce the burdens on health-care systems.
In addition to two-week self-isolation periods on entering Canada, travellers within the country are restricted from going to some provinces and regions. The Canada-U.S. border is closed to non-essential travel until July 21.
The European Union said on Tuesday it is reopening its borders to visitors from 14 countries, including Canada.
Air Canada said the timing of the suspensions and shutdowns will be governed by applicable regulatory notice requirements. Affected customers will be contacted and offered alternative flight plans, the company said.
Air Canadas announcement weighed on the share price of Halifax-based Chorus Aviation Inc., the operator of 21 of the Air Canada routes as Jazz Aviation and all eight regional stations. Choruss stock price fell by 4 per cent on Tuesday on the Toronto Stock Exchange.
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“The COVID-19 crisis and provincial and federal government-imposed travel restrictions and border closures are having a significant negative effect on passenger demand for Canadian air travel,” said Joe Randell, chief executive officer of Chorus, in a press release. “I am saddened by the impact today’s announcement will have on our employees, suppliers and the affected communities, but respect and understand the difficult choice our partner, Air Canada, has had to make.”
Here are the routes suspensions Air Canada announced on Tuesday.
Maritimes/Newfoundland and Labrador:
–DeerLake-GooseBay;
–DeerLake-St.Johns;
–Fredericton-Halifax;
–Fredericton-Ottawa;
–Moncton-Halifax;
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–SaintJohn-Halifax;
–Charlottetown-Halifax;
–Moncton-Ottawa;
–Gander-GooseBay;
–Gander-St.Johns;
–Bathurst-Montreal;
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–Wabush-GooseBay;
–Wabush-Sept-Iles;
–GooseBay-St.Johns.
Quebec/Ontario:
–BaieComeau-Montreal;
–BaieComeau-MontJoli;
–Gaspé-IlesdelaMadeleine;
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–Gaspé-QuebecCity;
–Sept-Iles-QuebecCity;
–ValdOr-Montreal;
–MontJoli-Montreal;
–Rouyn-Noranda-ValdOr;
–Kingston-Toronto;
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–London-Ottawa;
–NorthBay-Toronto
–Windsor-Montreal
Western Canada:
–Regina-Winnipeg;
–Regina-Saskatoon;
–Regina-Ottawa;
–Saskatoon-Ottawa.
Station closures:
–Bathurst(NewBrunswick)
–Wabush(NewfoundlandandLabrador)
–Gaspé(Quebec)
–BaieComeau(Quebec)
–MontJoli(Quebec)
–ValdOr(Quebec)
–Kingston(Ontario)
–NorthBay(Ontario)
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