Transat AT says it may need to lay off up to 80 workers as it lays groundwork for a financial turnaround.
In a notice sent to the Quebec government’s employment department, Transat said the layoffs could be effective 01NOV, The Globe and Mail reports in a story filed by Canadian Press. The Globe/CP story says Transat specified to the government that layoffs “would not apply to pilots, flight attendants or other federally regulated roles.”
“Over the course of the year, the company has felt the headwinds of stiff competition, engine recalls and the threat of a union strike, which together conspired to drain more money from the struggling outfit,” The Financial Post said.
Transat on 12SEP reported a combined net loss of $155.3 million in its first three quarters of its current fiscal year, compared to a loss of $28.5 million in the same period a year earlier. It said at the time it would launch a comprehensive plan called Elevation Program, a scheme designed “to accelerate our corporate strategy execution and drive long-term profitable growth.”
Annick Guérard, President and Chief Executive Officer of Montreal-based Transat, said the program “aims for a complete review of operations and business practices.”
It’s not known if the potential layoffs come from discussions around that program.
Transat said its Q3 results “reflect evolving market conditions and industry-wide pressure, as recently indicated by other carriers.”
“Demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty,” Guérard said. “Capacity increases throughout the industry also added to competitive pressure and negatively impacted yields.”
Air Transat’s 2,100 flight attendants earlier this year agreed to a new contract that made them the highest paid in Canada.
Transat spokesman Andréan Gagné said its notice of potential layoffs is a “precautionary measure” in order to comply with provincial rules.
The Financial Post said Quebec labour rules require some companies to submit potential layoff figures for provincially regulated jobs, even if the cuts never take place.
