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Wed, May 19, 2004

How I Saved The Airline

Air Canada, Five Unions, Reach Agreement

It's a deal that Canadian media types could just save Air Canada. The airline and five of its unions say they've reached a deal to cut costs in hopes of keeping the company's bankruptcy from turning into outright dissolution.

In one agreement, the Teamsters' Union, which represents flight attendants aboard Air Canada's low-cost subsidiary, Jazz, have finally agreed to a contract with the company.

"I sincerely thank our employees and representatives from CALDA and Teamsters Canada for their professionalism as we progress through this very important stage of Air Canada's restructuring," Joseph Randell, president of Air Canada Jazz, said in a news release on Sunday.

Unions representing machinists, pilots and dispatchers have also reportedly come to terms with Air Canada. Jazz dispatchers said they reached a deal on Saturday.

The very future of Air Canada and Jazz hangs upon agreements like these. The airline needs to cut $200 million in labor costs if it is to survive.

"We have always said that Air Canada's pilots were committed to see our company emerge from the restructuring process as a stronger, more efficient airline, poised to be competitive in an increasingly difficult market," Capt. Don Johnson, president of the 3,000-member Air Canada Pilots Association said in a statement early Sunday. "This recent agreement further demonstrates this commitment."

FMI: www.aircanada.ca/e-home.html

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