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Air Canada is cancelling more than 9500 flights this summer. What that means for your travel plans – The Globe and Mail

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Air Canada planes sit on the tarmac at Pearson International Airport in Toronto on April 28, 2021.Nathan Denette/The Canadian Press

Air Canada announced last week that it was cancelling thousands of flights in July and August in an effort to quell what it said were “unprecedented strains” that the overwhelming resurgence of travel had placed on the airline industry.

The airline was already operating at just 80 per cent of prepandemic levels. The move prompted outrage from consumers and advocates, who say Air Canada should offer better compensation to the hundreds of thousands of passengers whose summer flights have now been cancelled.

Air Canada reducing summer flights as industry faces ‘unprecedented strains’ on travel operations

Air Canada spokesman Peter Fitzpatrick said the airline believes the schedule changes announced last week will help stabilize the situation, but warned that it will take time.

Here’s what the cancellations mean for your travel plans.

How many flights will be cancelled?

More than 9,500 flights will be cancelled in July and August – or an average of 154 flights per day – as Air Canada looks to cut 15 per cent of its schedule, most of which will be to and from Toronto or Montreal.

Three routes from Montreal to Pittsburgh, Baltimore and Kelowna, B.C., will be temporarily suspended. Air Canada will also suspend its route from Toronto to Fort McMurray, Alta.

International flights will remain unaffected, in part because they are harder to rebook, Mr. Fitzpatrick said.

Some of the main issues for the airline relate to late-evening flights using single-aisle aircrafts, he said. Reducing evening flights, Mr. Fitzpatrick added, will allow Air Canada to improve start-up performance the next morning, help stabilize the airline’s schedule and aid in other areas such as baggage handling, catering and plane grooming.

Is Air Canada offering refunds and financial compensation?

Currently, Air Canada’s policy for delays and cancellations provides customers with the option of receiving a full refund no matter the reason in the event a flight is cancelled, delayed more than three hours or if a connection is added to an itinerary.

The airline also offers compensation – distinct from refunds – of between $400 and $1,000 either because of a cancellation or delay for travellers who arrive at their final destination three or more hours after their scheduled time of arrival for reasons deemed within Air Canada’s control, and unrelated to safety issues.

Cancellations because of reasons within Air Canada’s control include crew scheduling issues or when necessary equipment is unavailable. However, travellers who have had their flights cancelled because of safety problems such as maintenance issues, travel advisory updates, bad weather and sick crew members or passengers will not be eligible for compensation.

More protections for passengers are coming. Amendments to the Air Passenger Protection Regulations, which took force in 2019, will require airlines to provide refunds or alternative flights to passengers whose trips are cancelled or delayed by at least three hours for reasons outside the control of the carriers. They will go into effect on Sept. 8.

Airlines to refund passengers facing lengthy delays, cancellations under new regulations

The changes allow customers to choose between a refund or another flight that leaves within 48 hours on the airline in question, or a partner airline, at no additional cost. Large carriers are required to put customers on competitors’ planes. But until then, passengers whose flights are cancelled or delayed by three hours or more for reasons the airline cannot control, including weather or closed borders, are not entitled to a refund, and the airline must rebook them on the next available flight.

How to check if your flight is affected

Air Canada’s flight-status page on its website allows passengers who have already booked a flight to see whether it has been cancelled up to one week ahead of time. Travellers with a reservation can enter their flight number or flight route and departure date into the search engine.

When you book a flight with Air Canada, the airline says you are also automatically enrolled to receive flight notifications, which can be reconfirmed when you check in. For further questions, travellers within Canada and the U.S. can call 1-888-247-2262 at any time.

What to do if your luggage gets lost

If you can’t find your luggage at the baggage claim, Air Canada says to contact your airline’s baggage-service agent upon arrival, who will ask for your contact information, a detailed description of your luggage and items, your baggage claim stubs and boarding passes.

That information will be used to help you create a WorldTracer incident report, which you can use on the WorldTracer website to update or review the status of your lost luggage. Air Canada advises anyone who doesn’t immediately create this incident report to call Air Canada’s Central Baggage Office at 1-888-689-2247 as soon as possible, at any time.

If your luggage isn’t found after three days, you’ll be asked to fill out a Baggage Tracing form, which can be found here.

If your baggage is lost, Air Canada will refund checked-baggage fees and offers interim reimbursements for “reasonable expenses that you’ve incurred for rentals or essential items.” You may request to be reimbursed here, as long as your claims are supported by receipts.

“Each delayed bag is costly for us to handle and deliver post-flight, so we are doubly incentivized to have bags arrive with the customers,” Air Canada said in an e-mailed statement.

With reports from David Milstead, Eric Atkins and The Canadian Press.

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Fill up today! Here's when gas prices will rise seven cents a litre in Ottawa – CTV News Ottawa

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Ottawa motorists will want to fill up the gas tank on Saturday, before prices start to rise at the end of the weekend.

Gas prices dropped to their lowest level in six months at Ottawa stations on Saturday, at $1.599 a litre.  According to ottawagasprices.com, some stations in Ottawa were selling gas for $1.54 a litre.

Prices have dropped 20 cents a litre in Ottawa since Thursday.

However, Canadians for Affordable Energy President Dan McTeague is telling motorists to fill up the gas tank today.

McTeague forecasts prices will rise seven cents a litre in Ottawa and across Ontario on Sunday to 166.8 cents a litre.

Gas prices in Ottawa have dropped 56 cents a litre since hitting a record high of 215.9 cents a litre on June 11. A drop in demand and rising fears about a recession drove down the price of oil. The Ontario government cut the gas tax rate on July 1 from 14.7 cents per litre to 9 cents per litre.

Speaking on Newstalk 580 CFRA’s Ottawa at Work on Friday, McTeague said the recent drop in gas prices is welcome, but “don’t expect it to last.”

“The markets, I think, are overestimating the amount of demand drop we’ve seen in the United States and underestimating the severest supply shortage that we’re having,” McTeague said.

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Pandemic benefits were too generous with businesses, stringent with workers: experts – CP24 Toronto's Breaking News

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Nojoud Al Mallees, The Canadian Press


Published Saturday, August 6, 2022 11:21AM EDT

Benefits rolled out at the onset of the COVID-19 pandemic allowed vulnerable Canadians to stay healthy while maintaining an income, but business supports were excessive and show the outsized influence of business groups on public policy, economists say.

Nearly two and a half years ago, the federal government faced an unprecedented task of shutting down the economy to slow the rapid spread of COVID-19. That shutdown led to a series of pandemic relief benefits aimed at softening the blow to workers and businesses, with the two most prominent programs being the Canada Emergency Response Benefit and the Canada Emergency Wage Subsidy.

Recent analysis from Statistics Canada based on census data shows two-thirds of Canadian adults received pandemic benefits in 2020, with these benefits cushioning income losses and reducing inequality.

Previous analysis from the federal statistics agency also found that, as was expected, usage of the wage subsidy program correlated with a lower probability of closure and fewer employee reductions.

While there was little time to spend on crafting the benefits and fine-tuning the details in March 2020, economists are now assessing the successes and failures of these programs in retrospect.

City of New York University economics professor Miles Corak, who has written analyses on these programs, says any evaluation needs to account for the uncertainty people and governments were facing at the time and the urgent need to keep people healthy.

That said, Corak said while the CERB was “terribly successful,” the Canada Emergency Wage Subsidy was a “huge failure.”

“The Canada Emergency Response Benefit got money out the door quickly in time to keep people at home, which is what we wanted to do to save lives,” he said.

On the other hand, Corak said the CEWS “came too late, it wasn’t well-targeted and dramatically over-insured (businesses).”

The CERB was quickly announced in March 2020 and $2,000 monthly to Canadians who lost income because of the pandemic shutdown. That was followed soon after by the CEWS, which subsidized businesses’ employee wages by 75 per cent in hopes of encouraging companies to hold on to their staff.

Corak says that by the time the wage subsidy was introduced, many businesses had already parted ways with their employees.

Another source of criticism for the wage subsidy program was that it subsidized wages for all workers at affected businesses, rather than simply those whose jobs were at risk of being lost, making it especially costly.

Jennifer Robson, an associate professor of political management at Carleton University, also pointed to the wage subsidy program as being unsuccessful. Robson said businesses that would have otherwise closed down for reasons unrelated to the pandemic remained artificially afloat because of the wage subsidy.

“These were not businesses that were going to return to profitability,” Robson said.

Statistics Canada data shows the number of business closures spiked dramatically in April 2020, but a sharp decline followed, bringing monthly closures to a lower level than pre-pandemic.

About 31,000 businesses closed in August 2020, while nearly 40,000 had closed in February 2020. 

In hindsight, Corak said the wage subsidy program should have been smaller in scope and targeted to larger businesses with specialized needs where it would be important for companies to hold on to the same employees, such as the airline sector.

The Canadian Federation of Independent Business has said the wage subsidy was “crucial” for small business owners and noted in April this year that only two of five of its members reported being back to normal sales.

Adrienne Vaupshas, the press secretary for Finance Minister Chrystia Freeland, said in a statement the focus of the government at the onset of the pandemic was to protect jobs and ensure a strong economic recovery.

“Today we have recovered 114 per cent of the jobs that were lost during the darkest months of the pandemic,” Vaupshas said.

In contrast to what some economists have characterized as excessively generous supports for businesses, some low-income Canadians have experienced clawbacks to social assistance benefits because they collected CERB. The Canada Revenue Agency is also hoping to recoup benefits paid out to over 400,000 Canadians whose eligibility was questioned.

In response, anti-poverty group Campaign 2000 has called for CERB amnesty.

Corak said while it’s reasonable to ask those who fraudulently collected benefits to pay them back, businesses should be held to the same standard.

“The concern I would have is the asymmetry in this response between individuals and businesses,” Corak said.

The CFIB has called for more loan forgiveness for small businesses who accessed loans through the Canada Emergency Business Account. The federal government is already offering partial loan forgiveness if repayments are made by the end of 2023.

Robson said when it comes to shaping public policy, business interest groups have well-resourced public relations teams to further their interests.

“There is nothing like that for individual low-wage workers,” said Robson.

Corak noted that at the start of the pandemic, there was a focus on the role of front-line workers, but with time, this shifted to small businesses.

“I think the small business lobby was very effective in informing individual MPs and putting pressure on cabinet and the government to respond in a way that many unseen and unheard mothers, fathers workers and families just didn’t have that same voice,” Corak said.

The danger of the wage subsidy program, Corak said, is that it sets a precedent for providing excessive subsidies to businesses and thereby stifling innovation.

“We’re almost moving towards a basic income for small business rather than a basic income for individuals,” he said.

This report by The Canadian Press was first published Aug. 6, 2022.

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'Head-scratcher:' Economists weigh in on Canada's surprise job loss – Yahoo Canada Finance

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Canada’s July jobs reading caught economists by surprise with a loss of 30,600 positions rather than an expected gain of 15,000 for the month.

Despite the negative reading coming on the heels of a still larger decline in June, the unemployment rate stuck to its historic low of 4.9 per cent based, according to Statistics Canada, on a drop in Canada’s participation rate.

“Canada’s labour market is not in disarray,” said National Bank economists Kyle Dahms and Alexandra Ducharme, in their jobs commentary, noting that year-to-date, the private sector has added 110,000 positions. The pair said they continue to see “resilience in the Canadian economy” making them outliers among other big bank analysts.

After digesting July’s numbers, most economists appear to have taken away two narratives:

  • The Bank of Canada won’t be deterred from raising rates further, and possibly with another bigger than normal hike.

  • July’s jobs reading hints at an economy that is beginning to “lose steam.”

Here are the economists in their own words:

Rishi Sondhi, TD Economics

“That’s two in a row in terms of weak headline jobs prints, and employment has now averaged an 11k decline over the past three months. This is consistent with our view that economic growth will soften in the second half of the year. The details skewed to the softer end in July, as full-time employment accounted for a larger share of the overall jobs decline than in June, and hours worked also fell. The latter is particularly notable as it could signal a soft print for monthly GDP, following flat growth in May and a sub-trend gain in June (based on Statcan’s preliminary estimate).”

Stephen Brown, Capital Economics

“The second consecutive monthly decline in employment will raise a few eyebrows at the Bank of Canada but, with the unemployment rate unchanged at a record low and wage growth still strong, we doubt it will prevent the Bank from hiking its policy rate by a further 100 bp at the next two meetings…. While the increase in average hourly earnings was a little lower than we expected, at 0.4% m/m, that gain is still too high for comfort in terms of meeting the Bank’s 2% CPI inflation target. At the margin, the July LFS may tilt the odds a bit toward a 50 bp rate hike in September rather than a 75 bp one, but we doubt it will be the deciding factor.”

Andrew Grantham, CIBC Economics

“The Canadian employment figures were somewhat of a head-scratcher again in July, with employment falling for a second consecutive month but the unemployment rate remaining historically low. The 31K decline in jobs came against consensus expectations for a 15K gain, and added to the 43K decline in the prior month. However, a two-tick decline in the participation rate meant that the jobless rate remained at 4.9%. Job losses were strangely concentrated in the services sector, including wholesale & retail, education and health. With some of those sectors reporting high vacancy rates, labour supply rather than demand appears to be the main issue. That said, the major difference between today’s report and last month’s is that wage growth unexpectedly decelerated (to 5.4% y/y from 5.6% and against consensus expectations for 5.9%) although we always caution that the LFS wage series is extremely volatile month/month. While today’s figures muddy the waters further for policymakers, the Bank of Canada will likely focus on the historic low unemployment rate and still strong wage growth to justify another non-standard rate hike at its next meeting.”

Carrie Freeston, RBC Economics

“In the months ahead we will begin to see the economy lose steam. We are already observing jobless claims rising South of the border, as U.S. labour demand begins to cool. Canada will not be far behind. With the Bank of Canada having raised the overnight rate by 225 basis points (to 2.5%) since March, and at least another 75 basis points slated for the fall, inflation pressures will ease. And labour markets are expected to cool. Our forecast calls for the unemployment rate to begin to trend higher in the coming months and into 2023.”

Douglas Porter, BMO Economics

“Canada’s job market is clearly losing momentum in a hurry, likely due to both a marked cooling in the broader economy but also because a lack of available workers. The downward drift in the participation rate, especially for the 15-64 group, is worth watching closely, with the potential to tighten the labour market further. For the Bank of Canada, the takeaway will be that while growth is clearly cooling, conditions remain drum-tight and wages are stirring. We believe this backdrop is consistent with another rate hike at the September meeting, but of a less aggressive nature than the mega 100 bp move in July. We look for a 50 bp hike at that time.”

Marc Desormeaux, Desjardins Economics

“July’s data were well below the consensus projections, and as such shaved our call for Q3-2022 real Canadian GDP growth to just below 1% (q/q saar). Decelerating wage gains suggest that some progress has been made in the fight against inflation, but the rate of hourly earnings growth continues to track prices closely. Accordingly, while we think inflation may have peaked and have noted previously that the Canadian economy is historically sensitive to interest rate increases, we believe the Bank of Canada will put more weight on the extremely tight labour market and raise rates by 50 bps at its September meeting.”

Kyle Dahms/Alexandra Ducharme, National Bank Economics

Canada lost 31K jobs in July, a second consecutive monthly decline. Despite this development, Canada’s labour market is not in disarray. July’s losses were concentrated in public sector jobs. This sector indeed suffered its worst loss outside of a the pandemic since 1976 (-51K), a perplexing development considering the state of public finances at both the federal and provincial levels. Private sector employment, while also down in July, is still up 110K year-to-date with continued contribution from construction and manufacturing during the month. Despite the July decline, the unemployment rate remained unchanged at its lowest level since 1970 due to a 0.2 pp drop in the participation rate, a third decline in four months. With the unemployment rate remaining historically low, we still see resilience in the Canadian domestic economy. This robustness is also confirmed by the evolution of the wages of permanent employees, which grew 5.4% over the last twelve months, down from June’s 5.6% print but still historically high. At this juncture, the Bank of Canada is still on track to hike at its next meeting on the 7th of September with labour shortages continuing to persist according to the latest figures by the CFIB (Canadian Federation of Independent Business).

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