Air Canada will cut 9,000 jobs and reduce its operations by 20 per cent, grounding 84 aircraft, the carrier announced in a statement today.
The airline, like others in the industry, is struggling to cope with the fallout from the September 11 terror strikes on the United States, when hijacked jets were used as guided missiles. The attacks have only worsened Air Canada's financial outlook.
Four thousand of the 9,000 jobs being cut were announced in early August after the firm's disastrous results in the second quarter, when it posted a $70 million loss.
Last week, the nation's dominant airline asked the federal government for between $3 and $4 billion in financial aid to compensate for the reduced air travel demand due to the US terrorist attacks.
According to Air Canada president Mr Robert Milton, the airline has seen its sales plummet 60 per cent since September 11th.
AFP