Air Canada cutting routes as fuel costs rise
CBC News Posted: Mar 16, 2011 3:24 PM MT Last Updated: Mar 16, 2011 3:24 PM MT
Montreal-based Air Canada announced Wednesday it is cutting six of its domestic and international routes because of rising fuel costs.
Canada's biggest airline said it would eliminate Ottawa-Thunder Bay, Calgary-London (Ontario), Ottawa-Washington Dulles, Montreal-Washington Dulles, Calgary-Chicago and Calgary-San Francisco.
The cuts take effect May 1.
Customers will be offered alternate flights or routings, the airline said in a release.
Besides the route cuts, the airline will also reduce the frequency of flights on other routes and fly smaller planes.
Altogether, that will reduce growth in the number of available seats this year to between 4.5 to 5.5 per cent, compared with 2010. On Feb. 10, it had estimated 5.5 to 6.5 per cent for 2011.
The airline said it still expects to cut costs by two per cent, compared with 2010, mainly because of the stronger Canadian dollar.
Air Canada has hiked fares and introduced fuel surcharges on flights where the market can bear it. It said it continues to adjust fares and fuel surcharges "in response to market conditions."
http://www.cbc.ca/news/canada/calgar...oute-cuts.html