Canadian Airlines president Kevin Benson has given unions further time to back a financial rescue package rather than risk the ailing carrier entering bankruptcy.
Benson had set a 27 November deadline for the unions to accept a 10% wage cut as part of an austerity package aimed at returning the airline to profitability. Four out of the six unions involved have accepted the conditions. The latest deadline has been set for 4 December.
The unions' acceptance of the cuts is a critical plank of the recovery plan. Ottawa's regional government has, along with Alberta and British Columbia, agreed to provide fuel tax breaks to the airline, worth some CS$35 million ($26 million). This is dependent on the unions' agreement.
Source: Flight International
