Major cuts by Air Canada. New tests for the trouble Boeing 737 MAX. Plus, Delta joins with the Mayo Clinic, a spiffy new hotel project for Halifax and an update on Australia and tourism. My Future of Travel blog for June 30.
Air Canada Closing Operations at 8 Canadian Airports, Slashing 30 Domestic Routes
Air Canada plane.
It’s a perfectly understandable move given the COVID-19 pandemic and its impact on Canada. But it’s a devastating loss for many Canadian communities. And the company says there could be more changes coming soon.
Air Canada said today that it is indefinitely suspending service on 30 domestic regional routes and ceasing operations at eight regional airports in Canada, including North Bay and Kingston here in Ontario and Gaspe in Quebec.
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 COVID-19 and provincial and federal government-imposed travel restrictions and border closures, which are diminishing prospects for a near-to-mid-term recovery, officials said in a press release.
As the company has previously reported, Air Canada expects the industry’s recovery will take a minimum of three years. As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate.
A full list of route suspensions and station closures is below.
As a result of COVID-19, Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net cash-burn in March of $688 million. The carrier has undertaken a range of structural changes including significant cost savings and liquidity measures, of which today’s announced service suspensions 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 approximatively $5.5 billion in liquidity since March 13, 2020, through a series of debt, aircraft and equity financings.
Further initiatives are being considered.
Route Suspensions
The following routes will be suspended indefinitely as per applicable regulatory notice requirements. Affected customers will be contacted by Air Canada and offered options, including alternative routings where available.
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
The following are the Regional Airports where Air Canada is closing its stations.
- Bathurst (New Brunswick)
- Wabush (Newfoundland and Labrador)
- Gaspé (Quebec)
- Baie Comeau (Quebec)
- Mont Joli (Quebec)
- Val d’Or (Quebec)
- Kingston (Ontario)
- North Bay (Ontario)
Boeing Testing Troubled 737 MAX Planes
As if worrying about a pandemic wasn’t enough for travel lovers, now we have news that Boeing is testing the 737 MAX with an eye to getting the plane back up in the skies.
Reuters reports that pilots from the U.S. Federal Aviation Administration and Boeing landed around 2:15 p.m. local time at King County International Airport, also known as Boeing Field, after a round trip to eastern Washington State that included a high-speed system test and other maneuvres over about three hours.
Reuters first reported the long-awaited certification test flights, scheduled over three days, were set to start on Monday, a pivotal moment in Boeing’s worst-ever corporate crisis triggered by twin crashes that killed 346 people in Ethiopia and Indonesia.
A poll by Ipsos the other day found that only 24% of Canadians feel comfortable with the idea of flying anytime soon. I’m sure that number would be far, far less if they were asked about a trip on a 737 Max.
Boeing may ultimately recover from their recent disasters, but it’s going to take a lot of time. A lot of time.
Fairmont Quebec Hotel Deals
Fairmont Le Château Frontenac invites its customers to relive the legend for the summer and, for the occasion, offers attractive offers for those who wish to travel to Quebec City in the coming months to live “la vie de Château”. Since the beginning of June, the hotel offers a 20% discount on the price of its rooms for Canada residents. To this, Fairmont Le Château Frontenac, as well as its sister Fairmont properties in the province of Québec, have been rolling out its “Stay close” campaign, where travelers receive one complimentary night for every night’s stay until the end of 2020.
These two new promotions ( not combinable) are part of the initiative for stimulating local economy by offering great opportunities to Canadians who wish to favour travel in Canada and visit iconic properties for their vacation.
The Fairmont Le Chateau Frontenace in Quebec City. JIM BYERS PHOTO
Delta Airlines Working With Mayo Clinic: Not Selling Middle Seats Yet, Either
Delta Air Lines and Mayo Clinic, a global leader in serious and complex medical care, are deepening their relationship to provide additional safety and COVID-19 infection control measures for customers and employees.
Officials from Delta said the collaboration is another significant step in the company’s efforts to build upon its foundation of care and cleanliness, known as the Delta CareStandard, to mitigate the risk of transmitting COVID-19 during travel.
Delta has said it’s ban on middle seat sales is continuing through the end of September. American Airlines, WestJet and Air Canada all say they’ll start selling all available seats tomorrow.
Major Hotel Addition for Halifax
A rendering of the Queen’s Marque development in Halifax.
Marriott International, Inc. today announced a deal to bring its Autograph Collection brand to Halifax, with a 110-room hotel to be called MUIR, Autograph Collection. The property’s developer, The Armour Group Limited, expects to open the hotel in Spring 2021 as part of Queen’s Marque, a mixed-use project in the heart of Halifax that is poised to redefine the city’s waterfront.
Halifax is a wonderful city with a terrific waterfront already, not to mention lovely parks, great food and friendly locals.
US Hotels: Recovery Two Years Away
Speaking of hotels, according to a revised forecast, just released by data-analytics firm STR and insight group Tourism Economics, consumer demand for U.S. hotel products is projected to take until 2023 to fully recover to its pre-pandemic levels.
A report from my friends at TravelPulse in the U.S. says this newest prediction “comes despite the fact that the latest numbers have shown week-over-week occupancy levels improving over the past two months.”
In terms of occupancy, STR’s Senior Vice President of Lodging Insights, Jan Freitag, said, “Compared with our last forecast, we actually improved our demand projection for 2020 from -45.0 percent to -36.2 percent, but we expect it to take eleven quarters for the number of room nights sold to rise to the corresponding levels of 2019. Similarly, it will take until 2023 for occupancy to reach the 20-year historical average.”
Newfoundland Tourism: Borders Could Open Soon
You’ll find fantastic coastal scenery all around Newfoundland. – JIM BYERS PHOTO
There’s no official word, but tourism officials from Newfoundland and Labrador told me yesterday that the borders MIGHT open to other Canadians around the middle of July.
The four Atlantic provinces recently agreed to open their borders to each other on July 3. The agreement means travellers within the Atlantic provinces will not be required to self-isolate after crossing the borders. However, public health and proof of residency screening — showing a driver’s licence or health card — will be maintained at points entry to all Atlantic provinces.
Tourism officials say the province MIGHT open to visitors from outside Atlantic Canada if they stay clear of COVID-19 cases for another week or two.
Heading to Australia Soon? I Don’t Think So
If you’re a fan of Australia, and I definitely am that, you should have a look at this very useful piece from the Vancouver Courier. Canadians may be welcome in Europe this week, but I don’t think any of us will be hopping on a plane to Sydney any time soon.
