Jebby_ca

Has AC mentioned they are paying the remaining 25% that isn't being covered by the Canadian government?

"Employers must make their best effort to top-up employees’ salaries to bring them to pre-crisis levels."

mathemagic

No, good point, but I can't imagine they'd survive the bad press without doing that. Also I believe in keeping good employees, and not paying the difference would be an incentive for them to dislike AC for as long as it takes them to find another job after this is all over. I imagine the government had a few private words about this too, given it will cost each Canadian around a cup of coffee a week just to AC for this subsidy (plus all the lost interest on the yet-to-be-seen refunds!).

pitz

Will pass travel be allowed for all these "now not laid off, but not really working" employees?

That could be not good for the spread of the disease if employees are travelling recreationally on the remaining flights.

AC681

Pass travel is generally allowed through off duty/layoff/LOA.

Adam Smith

This isn't an AC bailout or even an airline bailout, it's a broad subsidy available across any industry.

What company wouldn't take free money from the government if it was eligible?

Sopwith since this post of yours was more about AC accepting federal wage subsidies, I'm replying here in this thread.

As I've just pointed out above, this isn't an AC or airline bailout. The money is meant to subsidize wages, not for other operational purposes.

If the feds want to attach conditions to assistance, they should do that with any money that goes in to an airline bailout package (if there is one), not something that's available to any industry.

Not that they need to - they have the power to compel the airlines on this any time they want, either through the CTA or through legislation, regardless of whether any financial assistance is provided.

Sopwith

I would rather see the money, under whatever euphemism you choose to describe it, go to the small businesses and customers that actually need it.

tracon

You complain when AC generates revenue through its' own promotions.
Now you complain when AC generates revenue from a government promotion.
What pure revenue do you suggest AC take in?
hint: this is capitalism. There is nothing pure about it.

From the article:
"Amount of Subsidy
The subsidy amount for a given employee on eligible remuneration paid for the period between March 15 and June 6, 2020 would be the greater of:

• 75 per cent of the amount of remuneration paid, up to a maximum benefit of $847 per week;"

So $847x52 weeks is roughly $44,000.
75% of $56,000/yr is the maximum eligible of $847/wk.

That's roughly what a senior call centre agent might make. $28/hr.
This subsidy won't make much difference to any mid level pilot that's been laid off.
Over at Jazz this will be more helpful.


That headline was from a year ago.
At one point AC stock was down roughly 80% from it's peak.

Sopwith

Actually it was from the G&M on Jan 1 of this year. Yes, AC’s stock price and cash flow have taken a beating since then, but if they’re going to take government handouts I’d rather see at least some of it used to mitigate the hosing they’re trying to perpetrate on the customers.

Stranger

Sure. But only after employees.

Jebby_ca

That's why I'm somewhat curious what AC is offering its employees... Their full salary, based on the minimum hours in their contract, or 75%, up to the maximum eligible amount? I agree... quite different for a FA vs. a FO, even when both are in their first year.

canadiancow

I've only heard rumblings, and I'm not sure if this is for AC, QK, or KV (that's Sky, right?), but it's based on minimum hours.

For a 20 year 777 CA, they're getting the maximum government amount (still way less than they earn).

For a new DH3 FO, they're getting way less than 75% of their regular compensation, even though they make less than $44k.

Jebby_ca

I've heard the same rumblings for AC/ACr... based on minimum hours in the contract, up to a max of the wage subsidy being offered by the government.

tcook052

https://www.cantechletter.com/2020/0...-manager-says/

Air Canada will need a federal bailout, this fund manager says

EdmFlyBoi

They are in a similar position to all world airlines who, quite frankly, have been devastated by COVID-19. However, they were on a very positive trajectory prior to COVID-19. I suspect they will use this opportunity to get leaner - they can park certain aircraft and pull back on some of the prior expansion (maybe Rouge gets dialled back). They still have a fairly large market share which will grow if they acquire Transat. Transat seems more likely to be headed for trouble than AC which may make it significantly cheaper to acquire (or it will simply disappear). It could be argued that a number of carriers will disappear which may make the medium term playing field better for AC (like Norwegian).

If a bailout is coming, it will be similar to the bailout received by other carriers with AC's profile. Travel will resume, maybe not this year, but it will resume. With long term union peace, reasonable pension funding, reasonable liquidity, and a fairly modern fuel efficient fleet (especially when all the A220's arrive and the narrow body Airbus fleet is retired), it could be argued that AC is in a fairly good position relative to many of the world's carriers.

It seems highly unlikely that the government would let the carrier fail. It also seems unlikely, with the shrewdness of their CEO, that shareholders won't be reasonably protected with whatever deal they ultimately get (if they do get one).

tcook052

https://business.financialpost.com/p...l-wage-subsidy

Air Canada Flight Attendant Union Calls for Improvements to Federal Wage Subsidy

VANCOUVER, British Columbia — The union representing 10,000 flight attendants at Air Canada and Air Canada Rouge is calling on the federal government to improve the way it is assisting workers impacted by the COVID-19 pandemic. The union says the government needs to allow workers who were on parental leave, disability, workers compensation or previous mitigations due to the B737 grounding to qualify for better support. The union is also calling on the government to encourage companies like Air Canada to negotiate wage subsidy offerings in better faith with the unions representing affected workers.