Canada's regional carriers face a shake-up following a decision by the country's two largest airlines to consider restructuring their domestic operations.
Air Canada set the ball rolling by announcing a review of operations which could lead to a restructuring of four regional carriers - Air BC, Air Ontario, Air Alliance and Air Nova, and the sale of the fifth, North West Territorial Airways.
The airline cites competitive issues and recent labour troubles at the regionals for its decision. It says that all options will be considered for the regionals, which employ nearly 3,000 people and account for about 10% of its revenue.
North West Territorial of Yellowknife, Northwest Territories, is up for auction, and although the sale of the four other regionals is not an option being considered by Air Canada, one possibility is scaling back flights and consolidating the operators into a single company.
The regionals were grounded by a two-month pilots' strike which ended in March and cost Air Canada C$16 million ($11million) in net income. The pilots' key demand to merge seniority lists with Air Canada pilots is unresolved and is one reason for the review.
Canadian Airlines International, meanwhile, is looking for a buyer, or partner, for Inter-Canadien, its 100%-owned regional and domestic subsidiary. The airline primarily serves Quebec with AI(R) ATR 72s and Fokker F28s.
Canadian says that if no buyer is found for Inter-Canadien, its operations may cease in August.
Source: Flight International
