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Air Canada pilots to vote on deal
Air Canada pilots based in Toronto will hear details Wednesday of a tentative deal reached by their union that includes a controversial proposal for a new discount airline to vacation hot spots.
While Air Canada would be keen to compete with carriers like Air Transat and other charters that fly to destinations in the Caribbean, Mexico and Europe, the key is winning over the powerful Air Canada Pilots Association, which represents 3,000 members.
The deal with the pilots, reached last month, is going out to the membership without any recommendation from the association's master executive council.
The proposal is believed to call for substantially different working conditions and pay for the lowcost airline than the main carrier. Pilots with less seniority would be affected because of the industry's "scope" rule that dictates which pilots are allowed to fly which planes.
Air Canada is also in bargaining right now with its other unions including CUPE, which represents flight attendants, and CAW, which represents customer service agents. Both unions declined to comment on discount airline proposal, saying they have not received any formal presentation yet.
Talks are also scheduled with the International Association of Machinist and Aerospace Workers.
The move into the lucrative vacation business is seen by some as a smart move for Air Canada amid uncertainty in the industry especially with soaring fuel prices. Just last month, the airline announced it was eliminating certain unprofitable routes and adding fuel charges on flights to the United States.
Fred Lazar, a professor at York University's Schulich School of Business, pointed to the success of lowcost airline Jetstar Airways, a whollyowned subsidiary of Qantas.
"Air Canada would need certain concessions from the pilots, in regards to hours and wages to make it viable,[url=http://www.sport.fr/smartphones/moncler.asp]femmes moncler[/url], and the total number of aircraft that could be employed by this new subsidiary," Lazar said.
Air Canada wants to compete with Air Transat and Sunwing, but Lazar thinks the airline is worried about other lowcost airlines in Europe and Asia such as Ryanair or AirAsia X operating here, or others yet to emerge.
He believes the pilots will sign on because they understand Air Canada needs such as subsidiary to succeed. As well, the pilots will set certain limits on routes, and to exceed the cap, it would require adding aircraft to the main carrier, he said.
Not all observers are convinced this lowcost carrier will work for Air Canada.
Joseph D'Cruz of the Rotman School of Management at the University of Toronto believes it isn't that easy to do, citing failed attempts by other airlines.
"Lowcost carriers that are started from scratch like Southwest Airlines and WestJet have been successful in building a lowcost culture," D'Cruz said, noting Southwest pilots will often help to clean the cabin to turn around the aircraft quickly.
"I can't quite see an Air Canada pilot coming out to pick up newspapers in the cabin," he said, adding the airline has had long history of conflict with its unions.
"It's not likely that the unions are going to be very accommodating in accepting significantly different wage scales and work practices, and both are essential for the success of a lowcost model," D'Cruz said.