HALIFAX, July 3 /CNW/ - Today, Jazz Air LP ("Jazz") announced that it has
implemented a number of cost-saving initiatives and is taking additional
measures to combat rising fuel costs.
Air Canada, Jazz's primary customer, announced on June 17, 2008, that it
would reduce network domestic and transborder capacity by 2% and 13%
respectively with the implementation of the fourth quarter 2008 and first
quarter 2009 schedules. As a result, Jazz's flying will be reduced by
approximately 5%.
The decrease in Air Canada's need for Jazz's services necessitates a
reduction in staff of approximately 270 Jazz employees.
"These are difficult times for our industry and the decision to reduce
our workforce was not reached lightly; it is with sadness that we'll see some
of our employees leave our company", said Joseph Randell, President and Chief
Executive Officer, Jazz. "We've grown very strong as a team and have overcome
many difficult challenges over the past number of years. Every effort is being
made to mitigate these job losses, and we hope this downturn in our industry's
cycle ends soon. We are in a period of great uncertainty and cannot predict
where the price of fuel is going. We have taken immediate action to better
match our resources with our new revenue levels. While Jazz is already a lean
organization and is in a reasonable position to manage its current challenges,
every effort is being made to reduce our costs and to prepare for what may lie
ahead."
Jazz has already established a number of fuel-saving initiatives,
recently froze all hiring and non-critical staff overtime, and instituted a
number of other cost-saving programs. Being a Six Sigma organization has made
Jazz a more efficient airline and the focus to ensure we remain competitive is
constant.
Airlines are currently operating in a very high-cost environment
worldwide. In addition to soaring fuel prices, airlines in Canada must also
contend with federal and provincial fuel excise taxes, security fees,
NavCanada fees and airport charges that rank amongst the most expensive in the
world. It is important to recognize the severity of the situation facing the
entire aviation industry and ultimately our communities. All industry partners
should make every effort to operate as efficiently as possible without
compromising safety.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
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Certain statements in this news release may contain statements which are
forward-looking statements.