Air Canada is slashing 3,500 jobs or 8% of its workforce and raising domestic fares by 6% after warning that it expects to take a loss for the fourth quarter of 2000. The carrier, which has now integrated Canadian Airlines, says recent bad weather has compounded problems relating to high fuel prices, restructuring and labour costs. Air Canada has also faced competition from smaller carriers seeking to exploit the disappearance of Canadian, but was ordered to drop price cuts on certain routes following complaints from CanJet. It plans to appeal against the decision.
Source: Flight International
