Air Canada said in a statement on Wednesday that it is adopting the government's Emergency Wage Subsidy and intends to rehire workers it laid off at the end of March
TORONTO (Pakistan Point News / Sputnik - 08th April, 2020) Air Canada said in a statement on Wednesday that it is adopting the government's Emergency Wage Subsidy and intends to rehire workers it laid off at the end of March.
On March 30, Air Canada announced that it would temporarily slash 16,500 positions from its 36,000 workforce in the face of growing challenges the airline industry has faced amid the novel coronavirus (COVID-19) pandemic.
"Following an analysis of publicly available information on the [Canada Emergency Wage Subsidy], discussions with Department of Finance officials on certain questions of interpretation, and subject to its adoption into law substantially as announced, Air Canada intends to adopt the CEWS for the benefit of its 36,000 Canadian-based employee workforce," the statement said.
Under the government's Emergency Wage Subsidy program, businesses that have seen revenues drop by at least 30 percent can apply to receive 75 percent wage subsidies to keep employees on payroll while much of the economy is shut down as a result of the COVID-19 pandemic.
Air Canada said that with domestic and international travel grounded to a halt, capacity has dropped by 85 to 90 percent and revenue losses have exceed the 30 percent threshold.
In addition, the airline announced company executives will be taking pay cuts and it intends to draw down lines of credit in the amount of $710 million to maintain liquidity.
On March 16, Prime Minister Justin Trudeau announced that Canada would bar entry to nearly all foreign citizens, with US citizens being the exception until it was announced that all non-essential travel between the neighboring countries would be halted as of Friday, March 20 at midnight.
