From “Air Transport World”:
Air Canada posts C$400 million loss, seeks ‘immediate’ pension relief
Air Canada reported a first-quarter net loss of C$400 million ($342 million), widened 38.9% from a C$288 million loss in the year ago period, and new President and CEO Calin Rovinescu said the carrier is urgently seeking relief from its pension funding obligations.
On the job for five weeks and already receiving criticism from AC’s unions (ATWOnline, April 2), Rovinescu told shareholders at the company’s AGM in Montreal, available via webcast, that it has a “pressing need to achieve an alternate pension funding solution” (ATWOnline, May 6). He noted that AC has around 25,000 employees and 25,000 retirees and has made C$1.7 billion in pension payments since 2004. It has a C$2.9 billion pension funding solvency deficit and has asked unions for a funding “moratorium.”
Have you ever heard such a demand from your federal, state or local government? Of course not. The taxpayers will continue to fund lavish benefit packages for public workers. Why? Because it’s easy. It’s much easier to pass on the costs to the taxpayers, rather than act like managers and negotiate with the public unions.