WestJet Airlines announced Wednesday that it will lay off 3333 employees as part of a major restructuring, at a time when the coronavirus pandemic has devastated the travel industry.
Posted on 24 June 2020 at 16 h 03 Updated at 17 h 08
Christopher Reynolds
The Canadian Press
The airline intends to consolidate the activity of its call centers in Alberta, to restructure its offices and its management personnel and to subcontract its activities to 38 Canadian airports where its services are offered, except four.
“Throughout the most serious crisis in aviation history, WestJet has made many difficult but essential decisions to ensure its sustainability,” said the president and chief of WestJet management, Ed Sims, describing the changes as “inevitable.”
The pandemic saw the airline immobilize two thirds of its fleet after the border closings, which prompted it to suspend most of its schedule – including all international travel – at the end of March . WestJet continues to operate at less than 10% of its capacity.
WestJet explained that the selection of airport partners would be carried out by prioritizing preferential job interviews for some of the 2300 employees of WestJet Airport who are now facing layoffs.
The airline, whose capital was closed in the wake of its purchase by the Toronto-based Onex in December, had hired 14 000 workers just before the arrival of the pandemic in March. After layoffs, WestJet will only have 4500 employees.
Airline revenue sources have declined to a fraction of pre-pandemic levels, with border closures continuing, even as demand for domestic travel gradually begins to increase.
Last week, less than 7500 passengers landed at Canadian airports from the United States, a drop of more than 98% over the previous year, according to the Canada Border Services Agency.
The number of international passengers has decreased by 95% compared to the previous year, the agency said on Wednesday.
The CEOs of 27 Canadian companies in sectors ranging from aviation to banking and telecommunications called to a “measured” reopening of airspace, which would allow travel to resume in all provinces and between certain countries.
Manitoba and the maritime provinces continue to restrict interprovincial travel, although the four Atlantic provinces announced plans on Wednesday to create a “bubble” that would allow their residents to travel in the region by eliminating the isolation period of 14 days imposed so far.
Travelers arriving from abroad in Canada must isolate themselves for two weeks.
Last week, Prime Minister Justin Trudeau extended the ban on non-essential travel between Canada and the United States at least until 21 July.
For their part, the countries of the European Union have started to reopen their borders between themselves and with certain other countries.