Air Canada and the Canadian Auto Workers union have reached a tentative agreement to end a strike by 3800 customer service agents (The New York Times/Postmedia News/Toronto Star, 16-Jun-2011). The settlement put off resolution on the most contentious issue in the negotiations and now binding arbitration will determine the fate of Air Canada’s plan to give new employees a different pension plan. Existing employees will not see a change in their benefit plan. The union has asked its members to return to work on 17-Jun-2011. The new agreement, which will last four years, will be presented to the union membership for ratification in the next four or five days. The settlement was reached just hours after Labour Minister Lisa Raitt tabled back-to-work legislation in the House of Commons. Mr Raitt has congratulated all parties on reaching the agreement. [more - Canadian Labour Minister]
Air Canada and union reach agreement
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China-US air growth slows as Xiamen Airlines flies Fuzhou-New York, making the world a smaller place
The world becomes a smaller place on 15-Feb-2017 with the launch of Xiamen Airlines' Fuzhou-New York JFK service. The route is a not a headline grabber like the ultra long hauls of Singapore-San Francisco or Doha-Auckland. But linking the two cities brings a nonstop flight to what is, by some calculations, the largest unserved trans-Pacific market.
The new flight reflects on current themes in the market between Asia and North America: the growth from China's secondary cities, more Chinese airlines being catapulted onto the world stage, and impacts to one stop competitors.
Fuzhou-New York will initially be only flown three times a week, supporting competitors' retorts that they have a frequency advantage – or at least for now. Competitors have also claimed a better product, but Xiamen's 787-9 is China's fifth widebody to offer direct aisle access business class. Soft service is catching up, and likewise for commercial planning: Xiamen's 787-9s do away with first class. This report looks at the growth of China and the rest of Asia to North America as growth momentum slows with China's bilateral capacity being reached.
Air Canada and Virgin Australia codeshare, in a North American market dominated by Qantas
From early 2017 Air Canada and Virgin Australia introduce a tidy new partnership. Virgin Australia receives improved access to Canada – a market its JV partner Delta cannot sufficiently cover from their shared Los Angeles gateway. Air New Zealand's sixth freedom option, via Auckland, is the third largest transportation choice by Canadians visiting Australia. Since Virgin noisily fell out with Air NZ, the Australian airline is looking to reassert itself in Australia-North America markets that it had quietly let Air NZ dominate. Virgin has already announced plans to resume trans-Pacific services from Melbourne, which Air NZ took traffic from.
Air Canada is growing in Australia, expanding from its 2007 Sydney service with a 2016 Brisbane service, and perhaps soon Melbourne as well. Air Canada needs a partner for domestic and New Zealand connections as it expands its footprint and grows ahead of market demand. There is some conflict, since Air Canada - as it does for its expanding Asia and Europe presence – will look for USA sixth freedom traffic. Air Canada has favourable connections via Vancouver to a handful of American cities, including New York.