Air Canada Jazz Service to be discontinued to certain small communities

Air Canada announced today that effective January 2003, it will discontinue service to certain small communities to coincide with the expiry of its three-year commitment to the Minister of Transport to provide such service. As a condition of its acquisition of Canadian Airlines in early January 2000, Air Canada committed to the Minister that communities previously served by Air Canada or Canadian Airlines or their wholly-owned subsidiaries would continue to be served until January 4, 2003. 

That commitment has been fulfilled. Effective January 4, 2003, Air Canada Jazz will discontinue service to three communities: Yarmouth, Nova Scotia; St. Leonard, New Brunswick; and Stephenville, Newfoundland. Effective January 8, 2003, Air Canada Jazz will no longer operate between Goose Bay-St.John's; Goose Bay-Deer Lake; Deer Lake- St.John's and Deer Lake-Wabush. Service will continue to be provided to Air Canada's network of 68 communities in Canada by Air Canada, Air Canada Jazz and commercial partners. 

These changes are in addition to service realignments in Western Canada made earlier this year to communities whereby routes were transferred by Air Canada Jazz to smaller local airline operators. These communities include Comox, Campbell River and Dawson Creek in British Columbia and Lloydminster in Alberta.

"Our commitment to continue service to small communities for three years was a significant undertaking, particularly in view of the difficult environment the airline industry has operated within for the past two years," said Calin Rovinescu, Executive Vice President, Corporate Development and Strategy. 

"Air Canada Jazz's short haul regional service has been negatively impacted by the economic downturn, increased industry-related charges such as security fees, airport user charges and fees and insurance rates. The situation has been compounded by regulations that have hindered our ability to be price competitive on certain routes. As a result, some services that were  marginally viable are no longer sustainable for the airline and will be discontinued. We are, however, open to working with communities and governments to assist in resolving the issue of air transportation to communities affected," he concluded.

In accordance with the Canada Transportation Act, the airline has provided 120 days notice of its intention to terminate service to these communities. While route performance is monitored on an ongoing basis, no other changes to the Air Canada Jazz route network are planned at this time beyond the airline's normal schedule adjustments.