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July 6, 2000
(Tourism, Culture and Recreation)

New consolidated corporate structure for Air Canada/Air Nova
should not negatively affect Newfoundland and Labrador

Charles Furey, Minister of Tourism, Culture and Recreation, today commented on the impact of the recently announced new consolidated corporate structure for Air Canada/Air Nova which will be in place until March 2002.

"After examining the new consolidated corporate structure of Air Canada/Air Nova, I am pleased that Air Canada has decided to maintain its strong regional presence with the location of a senior management team in Halifax," said Furey. "Air Canada has assured me that this corporate restructuring will not impact the Newfoundland and Labrador office located in St. John�s. There will be no downsizing which will affect the management presence in this province."

There will be no diminution of the Air Canada/Air Nova management presence in Newfoundland and Labrador. There has been a corporate consolidation of Air Nova, Air BC and Air Ontario in a new corporate headquarters of regional operations to be based in Halifax. Canadian Regional Airlines will also be integrated into the regional network, if there is no buyer for the airline. Regional bases will be maintained in Vancouver, Calgary, London, Ontario, Toronto and Quebec City. These bases function for change of flight crews, maintenance and operations.

"I hope that this corporate consolidation will result in a continued focus on the Newfoundland and Labrador market, the promised operating efficiencies and flexibility that will indeed lead to improved regional service which directly benefits customers and communities in Newfoundland and Labrador," added Furey.

Minister Furey noted that this corporate consolidation also guarantees no involuntary layoff or relocation until March 2002. It remains a concern about what Air Canada plans after this date, once all of the planned restructuring of the new merged airline, including the possible integration of Canadian Regional Airlines, takes place. Government will continue to work with Air Canada/Air Nova to ensure that all capacity requirements and service demands are met for this province. Newfoundland and Labrador still needs more capacity and improved schedules, lower costs and high levels of service quality in order to keep the growth trend in the tourism industry alive.

Media contact: Elizabeth Matthews, Communications, (709) 729-0928.

2000 07 06                     11:35 a.m.

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