Jazz Air to cut 270 jobs

Airline Industry Information, July 4, 2008

AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

Following Air Canada's announcement in June that it is reducing its workforce by up to 2,000 positions, Jazz Air LP (TSX:JAZ.UN), which has a commercial agreement with Air Canada, yesterday (3 July) announced that it will be implementing a reduction of approximately 270 staff.

The company has described the plan as a cost-saving initiative because of rising fuel prices, and has introduced other measures for saving costs, including freezing all hiring and non-critical staff overtime.

Joseph Randell, president and chief executive officer of Jazz, has described the company's regret at the job losses, which have been caused by a "period of great uncertainty" for airlines and unstable fuel prices.

Jazz's flying will be reduced by an estimated 5% due to Air Canada's plans to reduce its domestic capacity by 2%, US transborder capacity by 13% and international capacity by 7%.

((Comments on this story may be sent to aii.feedback@m2.com))