Air Canada to launch cut-rate vacation carrier
Sep 25, 2011, 10:30 am
#106
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Air Canada (AC.B-T1.38-0.08-5.48%)’s plan to launch a low-cost carrier next year has hit a roadblock after the union representing flight attendants turned its back on the proposal.
Negotiators for the Canadian Union of Public Employees withdrew their support for the discount leisure airline after hundreds of flight attendants expressed concern about Air Canada’s push for lower wages for new hires.
CUPE members are scheduled to start voting late next week on a revised tentative collective agreement, which has omitted a three-page letter of understanding that offered reduced wages for new flight attendants at the low-cost carrier. The letter formed part of the previous tentative pact that was overwhelmingly rejected by CUPE members in August...
http://www.theglobeandmail.com/globe...rticle2178424/
Sep 25, 2011, 10:20 pm
#107
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Or maybe not:
Air Canada (AC.B-T1.38-0.08-5.48%)’s plan to launch a low-cost carrier next year has hit a roadblock after the union representing flight attendants turned its back on the proposal.
Negotiators for the Canadian Union of Public Employees withdrew their support for the discount leisure airline after hundreds of flight attendants expressed concern about Air Canada’s push for lower wages for new hires.
CUPE members are scheduled to start voting late next week on a revised tentative collective agreement, which has omitted a three-page letter of understanding that offered reduced wages for new flight attendants at the low-cost carrier. The letter formed part of the previous tentative pact that was overwhelmingly rejected by CUPE members in August...
http://www.theglobeandmail.com/globe...rticle2178424/
Air Canada (AC.B-T1.38-0.08-5.48%)’s plan to launch a low-cost carrier next year has hit a roadblock after the union representing flight attendants turned its back on the proposal.
Negotiators for the Canadian Union of Public Employees withdrew their support for the discount leisure airline after hundreds of flight attendants expressed concern about Air Canada’s push for lower wages for new hires.
CUPE members are scheduled to start voting late next week on a revised tentative collective agreement, which has omitted a three-page letter of understanding that offered reduced wages for new flight attendants at the low-cost carrier. The letter formed part of the previous tentative pact that was overwhelmingly rejected by CUPE members in August...
http://www.theglobeandmail.com/globe...rticle2178424/
I say to union members, protect your own skin, but why protect the skin of those union members in the future, who don't understand your plight just yet.. new hires will be educated enough regarding wages and PBs to decide whether or not they will take the job, with parameters explained..
If not, then AC would just have to pay more and make benefits more attractive for new hires to agree to be hired onto the LCC structure..
Sep 25, 2011, 10:40 pm
#108
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So the union and AC comes to agreement and now the union execs are pulling out? Bit wishy washy imo.. a major component of why AC would agree to terms is getting the LCC.. so that they are better able to compete..
I say to union members, protect your own skin, but why protect the skin of those union members in the future, who don't understand your plight just yet.. new hires will be educated enough regarding wages and PBs to decide whether or not they will take the job, with parameters explained..
I say to union members, protect your own skin, but why protect the skin of those union members in the future, who don't understand your plight just yet.. new hires will be educated enough regarding wages and PBs to decide whether or not they will take the job, with parameters explained..
Turns out the FA union has been quite weak.
They originally negotiated an agreement with AC which inlcuded approval of the LCC thing. Agreement was turned down by membership, with either 88% or 98% of the votes against. (I believe I saw both figures quoted; one would think 88 is more likely.)
Same union with low support from membership went back to AC and negotiations were restarted. New agreement was reached last week more or less under the gun, which no longer includes an LCC apparently. Whether the new agreement will be supported by the members is yet to be determined.
Sep 26, 2011, 10:09 am
#109
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http://cupe.ca/air-canada/air-canada...tendants-serve
Sep 26, 2011, 10:15 am
#110
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Both figures were quoted but for different votes. The membership voted down the last tentative agreement with 87.8% against it while later voting 98% in favor of a strike mandate.
http://cupe.ca/air-canada/air-canada...tendants-serve
http://cupe.ca/air-canada/air-canada...tendants-serve
Sep 26, 2011, 11:30 am
#111
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Hopefully the 767s they'll use will start with taking the three amigos out of the core AC fleet.
Is the LCC indented for new destinations or to replace some existing ones? I wouldn't be happy if routes like Hawaii and other sun destinations were suddenly only offered by the LCC and not AC, and hence no J cabin.
Is the LCC indented for new destinations or to replace some existing ones? I wouldn't be happy if routes like Hawaii and other sun destinations were suddenly only offered by the LCC and not AC, and hence no J cabin.
Barcelona
Athens
Lisbon
Dublin
Amsterdam
Edinburgh
Rome
Now that we can't get a Bmi flight from LHR to GLA it would be great to get AC flying into Glasgow again.
Years ago we could fly into Prestwick but then AC moved north to Glasgow. Then, AC stopped all flights into Scotland. There is no *alliance airline flying into GLA since the end of March.
I would love to be able to fly into
Prestwick again. Cheaper airport fees too I would imagine. AC if you are reading this thread, think about returning to GLA.
Last edited by nobody-elite; Sep 26, 2011 at 6:34 pm
Sep 26, 2011, 10:59 pm
#112
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Nothing like that.
Turns out the FA union has been quite weak.
They originally negotiated an agreement with AC which inlcuded approval of the LCC thing. Agreement was turned down by membership, with either 88% or 98% of the votes against. (I believe I saw both figures quoted; one would think 88 is more likely.)
Same union with low support from membership went back to AC and negotiations were restarted. New agreement was reached last week more or less under the gun, which no longer includes an LCC apparently. Whether the new agreement will be supported by the members is yet to be determined.
Turns out the FA union has been quite weak.
They originally negotiated an agreement with AC which inlcuded approval of the LCC thing. Agreement was turned down by membership, with either 88% or 98% of the votes against. (I believe I saw both figures quoted; one would think 88 is more likely.)
Same union with low support from membership went back to AC and negotiations were restarted. New agreement was reached last week more or less under the gun, which no longer includes an LCC apparently. Whether the new agreement will be supported by the members is yet to be determined.
Didn't the GAs agree to the LCC component in their agreement? If so, I have a hard time believing that AC would give up on this very important component to settle before the strike..
If I was AC, I would have let the union strike.. with back to work legislation enacted inevitably by the Harper government..
Nov 4, 2011, 12:34 pm
#113
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Discount airline key to Air Canada’s success
http://www.thestar.com/business/comp...nada-s-success
Despite strong union opposition, Air Canada believes that starting a discount carrier remains critical to the airline’s long-term success.
“This is not an invention that I dreamed up yesterday,” Air Canada president and CEO Calin Rovinescu told analysts on a conference call Friday. “There has been a tremendous amount of success that we have seen in market after market after market all around the world of the low-cost model.”
Despite strong union opposition, Air Canada believes that starting a discount carrier remains critical to the airline’s long-term success.
“This is not an invention that I dreamed up yesterday,” Air Canada president and CEO Calin Rovinescu told analysts on a conference call Friday. “There has been a tremendous amount of success that we have seen in market after market after market all around the world of the low-cost model.”
Nov 4, 2011, 6:36 pm
#114
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LCC's work--and even make good profits but it's the management that makes the difference--some LCC attempts have failed --eg TED and didn't AC have a LCC version? It may be better to have a totally different airline--arms length from AC and different management where AC will feed it's LCC traffic and maintain a majority ownership without interference.
Nov 4, 2011, 6:40 pm
#115
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I agree with the CEO.. that the LCC model is an entire segment that AC needs to capitalize on in order to survive long term..
LCCs would keep the current union happy, as AC would be able to afford to meet union demands.. which they can otherwise illafford..
LCCs would keep the current union happy, as AC would be able to afford to meet union demands.. which they can otherwise illafford..
Nov 4, 2011, 7:02 pm
#116
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Eastjet
Zap
Zop
Zed
With 1-2 hr call center wait times (as mentioned in another thread) I think AC is simply cementing its record of shockingly-bad service by couching it in terms of an LCC ("We're bad, but hey we're also cheap.").
AC 2.0 - bad to the bone (and proud of it).
(Cue the tcook jukebox! Thorogood.)
Eastjet
Zap
Zop
Zed
With 1-2 hr call center wait times (as mentioned in another thread) I think AC is simply cementing its record of shockingly-bad service by couching it in terms of an LCC ("We're bad, but hey we're also cheap.").
AC 2.0 - bad to the bone (and proud of it).
(Cue the tcook jukebox! Thorogood.)
Nov 4, 2011, 7:40 pm
#117
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Nov 4, 2011, 7:40 pm
#118
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Nov 4, 2011, 9:19 pm
#119
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"LCC" means NOTHING to the Y traveller. It's one of the biggest jokes in the airline biz . . .
What's the difference between a TED 320 and a UA 320?
What's the difference between WN 737 and DL 757?
What's the difference between AS MD80 and AA MD80?
What's the difference between WS 737 and AC A320?
The "low cost" is enjoyed by the airline, not the passenger.
What's the difference between a TED 320 and a UA 320?
What's the difference between WN 737 and DL 757?
What's the difference between AS MD80 and AA MD80?
What's the difference between WS 737 and AC A320?
The "low cost" is enjoyed by the airline, not the passenger.