Air Canada Jazz dismisses hundreds of employees

Jazz, a regional airline associated with Air Canada, has decided to dismiss 270 of its 4,980 employees, as it struggles with record high fuel prices and concerns about a looming recession. The carrier also anticipates a decline in passenger figures, as ticket prices increase and as a growing number of potential clients decide to cancel travel plans.

Joseph Randell, Jazz’s chief executive officer, however, pointed out that the single biggest problem for the entire commercial air travel industry is the price of petrol. “We are in a period of great uncertainty and cannot predict where the price of fuel is going,” Randall explained. The Jazz chief did, nonetheless, indicate that he continues to hold out hope for an upswing in the air travel industry, as soon as fuel prices start to go down.

Jazz, based in Halifax, Nova Scotia, is a prominent carrier in Canada and operates the country’s second largest fleet. WestJet, however, remains the country’s second largest airline after Air Canada’s mainline service, as all of Jazz’s planes are relatively small, regional Canadair-Bombardier jets.

In addition to the 270 lay-offs, Randell pointed out that Jazz will also have to decrease capacity and the number of its routes by around 5 percent. These cutbacks are likely to occur over the course of the coming months. Jazz has already confirmed that it will shut down its base at the Hamilton Airport altogether, which will lead to 10 route cuts. There is also concern that Jazz will trim its operations in Halifax, which would adversely affect Nova Scotia’s tourism industry.

www.flyjazz.ca