Prime Minister Justin Trudeau has said the federal government is committed to providing more support to airlines after Air Canada announced it would cut its workforce by at least half.
In an emailed statement, Air Canada said on Friday that it would lay off 50 to 60 per cent of its staff by June 7. This means that 22,800 people will lose their jobs.
Trudeau said some areas were more affected by the COVID-19 epidemic than others. Airlines were doing very well before the epidemic.
Meanwhile, Trudeau announced that the first trials of the Covid-19 vaccine would begin in the country. He also announced a $300 credit per child through the Canada Child Benefit for the month of May.
“After all this, we will still need airlines,” Trudeau said. “So we need to make sure that we help them in the right way that makes sense to Canadians.”
Air Canada said business was down 95 per cent due to the Covid-19 epidemic and normal traffic levels were not expected to pick up soon.