Air Canada Ends Service on 30 Domestic Regional Routes; Closes Eight Stations

Air Canada has decided to indefinitely suspend service on 30 domestic regional routes and will close eight stations at regional airports in Canada.

These structural changes to Air Canada's domestic regional network are being made as a result of continuing weak demand for both business and leisure travel due to the ongoing global COVID19 pandemic and provincial and federal government-imposed travel restrictions and border closures, which the airline says "are diminishing prospects for a near-to-mid-term recovery".

The airline is considering other changes to its network and schedule, as well as further service suspensions as it takes steps to decisively reduce its overall cost structure and cash burn rate. Air Canada had previously said that it expects the industry's recovery will take a minimum of three years.

The confirmed route suspensions and station closures are:

Maritimes/Newfoundland and Labrador:

* Deer Lake-Goose Bay;
* Deer Lake-St. John's;
* Fredericton-Halifax;
* Fredericton-Ottawa;
* Moncton-Halifax;
* Saint John-Halifax;
* Charlottetown-Halifax;
* Moncton-Ottawa;
* Gander-Goose Bay;
* Gander-St. John's;
* Bathurst-Montreal;
* Wabush-Goose Bay;
* Wabush-Sept-Iles;
* Goose Bay-St. John's.

Quebec/Ontario:

* Baie Comeau-Montreal;
* Baie Comeau-Mont Joli;
* Gaspé-Iles de la Madeleine;
* Gaspé-Quebec City;
* Sept-Iles-Quebec City;
* Val d'Or-Montreal;
* Mont Joli-Montreal;
* Rouyn-Noranda-Val d'Or;
* Kingston-Toronto;
* London-Ottawa;
* North Bay-Toronto
* Windsor-Montreal

Western Canada:

* Regina-Winnipeg;
* Regina-Saskatoon;
* Regina-Ottawa;
* Saskatoon-Ottawa.

Station Closures

* Bathurst (New Brunswick)
* Wabush (Newfoundland and Labrador)
* Gaspé (Quebec)
* Baie Comeau (Quebec)
* Mont Joli (Quebec)
* Val d'Or (Quebec)
* Kingston (Ontario)
* North Bay (Ontario)

Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net cash-burn in March of C$688 million (roughly US$577 million).

The carrier has undertaken a range of structural changes including significant cost savings and liquidity measures, of which the latest service suspensions above form part. Other measures include:

* A workforce reduction of approximately 20,000 employees, representing more than 50 per cent of its staff, achieved through layoffs, severances, early retirements and special leaves;

* A company-wide Cost Reduction and Capital Deferral Program, that has to date identified around $1.1 billion in savings;

* A reduction of its system-wide capacity by approximately 85 per cent in the second quarter compared to last year's second quarter and an expected third quarter capacity reduction of at least 75% from the third quarter of 2019;

* The permanent removal of 79 aircraft from its mainline and Rouge fleets;

* And raising approximately $5.5 billion in liquidity since 13 March 2020, through a series of debt, aircraft and equity financings.

Further measures are being considered. 

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