Air Canada (AC) is permanently ending six major routes out of its hub in Calgary, Alberta, a decision it says is due to an ongoing shortage of pilots.
The Montreal-based carrier, which is the biggest airline in Canada, says it will no longer offer non-stop flights from Calgary to Ottawa, Halifax, Los Angeles, Honolulu, Cancun, and Frankfurt as of the end of October.
In addition to a shortage of pilots, Air Canada says it is also facing pressure due to supply chain challenges that are making it more difficult for the airline to obtain needed parts and complete airplane maintenance.
A pilot shortage has been worsening across the U.S. and Canada for several years due to an aging workforce and the rapid proliferation of new discount airlines that are constraining the labour supply.
The pandemic also disrupted the training of new pilots and led many experienced pilots to retire or take jobs outside the aviation industry.
However, the flight cancellations are also the latest sign that Air Canada and Calgary-based WestJet are dividing up routes in Canada to lessen competition and maximize their profitability.
Last year, WestJet announced that it would concentrate its future growth in Western Canada and removed several routes from the Ottawa-Toronto-Montreal areas.
Air Canada has been adding service to its main Toronto and Montreal markets, and has eliminated several regional routes in Western Canada, including direct service to cities such as Regina and Saskatoon.
As each airline retrenches and focuses on areas of the country where they have the most market strength, concerns have been raised about collusion and a growing lack of competition in Canada’s airline sector.
The Saskatoon Chamber of Commerce earlier this year filed a complaint to the federal Competition Bureau over Air Canada’s decision to stop flights from Saskatoon to Calgary, a move the Chamber said gives WestJet an “anti-competitive monopoly” in Saskatchewan.
Air Canada's decision to cut service from Calgary also comes as the airline's pilots negotiate a new collective agreement with the company. The pilots’ current labour agreement expires on September 29.
Air Canada’s stock has risen 29% over the last 12 months to trade at $22.85 per share.
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