Air Canada to trim $50-million in costs

Discussion in 'Air Canada | Aeroplan' started by tcook052, May 10, 2013.  |  Print Topic

  1. tcook052
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    tcook052 Silver Member

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    http://www.theglobeandmail.com/repo...-million-in-costs/article11874346/?cmpid=rss1

    Air Canada is hoping to cut $50-million across the company in the current second quarter, as the airline battens down the hatches ahead of a storm of new competition.

    In a memo to senior management obtained by The Globe and Mail, chief executive officer Calin Rovinescu outlined measures to be taken immediately, including a hiring freeze, stopping the use of consultants and further efforts to trim costs with suppliers.
     
  2. Many airlines are scrambling to reduce costs, including WestJet, which is looking to shave $100-million in expenses over three years. Many carriers have instituted major company-wide cost overhauls, such as Air Transat's recent layoffs and restructuring.
    At Air Canada, each department is required to contribute cost-cutting targets, the memo said. "We are well within the quarter so we need to act fast," the company's CEO noted.
     
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  4. Further to my last post it seems everyone nagging about AC's $50MM cuts are not mentioning that WJA have announced cuts in spending of $100MM over the next year. And people should fly on some of UA/CO's metal that look like a 50's revival with their seats and lack of VOD.
     
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  5. tcook052
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    tcook052 Silver Member

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    Sure, lets make some comparisons about corporate culture and how different it is at AC vs. WS.

    On one hand WS Saretsky comes right out in the media as he did here and talks about cost savings whereas at AC it gets leaked from an internal memo from Calin.
     
  6. Stephan

    Stephan Silver Member

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    One wonders which is a more realistic reflection of FF sentiment: those comments or what is being offered here? Although TOB is by no means a true measure of the general public's attitude towards AC, such threads do reflect the sentiment that AC has clearly alienated a significant portion of its FF base. All the Polyanna commentary here is not going to change that fact.
     
  7. Stephan

    Stephan Silver Member

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    A valid comment about the current outlook for all the major players in North America.... too bad it is then followed up with more of the usual apologies and whinging about all things non-AC.
     
  8. LETTERBOY
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    LETTERBOY Gold Member

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    People would complain & whine regardless of how the information was communicated.
     
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  9. tcook052
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    tcook052 Silver Member

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    Disagree as the reason for whining & complaining is mistrust of AC by both the flying public and staff alike which the leaked hidden memo only serves to reinforce. That mistrust is not evident at WS and so when Saretsky talks about cost savings the reaction is almost nil.
     
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  10. Stephan

    Stephan Silver Member

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    Not to mention that the travelling public has not been subjected to news about about big bonuses for CEO's at WS!
     
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