travelwriter

Citing rising fuel costs, Air Canada announced yesterday that a 7% reduction in capacity will result in up to 2,000 job losses system wide.

Air Canada noted that the price of oil has quadrupled since 2004.  The average cost of to carry a passenger round-trip was only $110 in 2004 has now risen to $230.

Air Canada also noted that “in addition to record high fuel prices, Canadian carriers are forced to contend with federal and provincial fuel excise taxes, security fees and airport charges that are amongst the most expensive in the world today.”

Coming from a former Canadian travel consultant for 14 years, this spells big trouble.  I’ve seen the same thing happen with the likes of now defunct Canadian Airlines,  Canada 3000, Roots Air, Greyhound  air and Royal Aviation, only to name a few.  First come the layoffs, then closes the airline….

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