flyyul
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Air Transat To Lay-off 30% Of Its Workforce

Tue May 06, 2003 12:01 am

Yeah the Montreal economy is taking a beating here  Sad

Anyway, on cyberpresse.ca (La Presse's french internet website), AIr Transat is to lay-off 30% of its force, basically all of it's non-unionized employees.

They cite weak demand for travel to Canada and Europe due to SARS...

Not a good day for Canadian aviation...

Mark
 
Cessnapimp
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RE: Air Transat To Lay-off 30% Of Its Workforce

Tue May 06, 2003 1:11 am

That's bad...

What I'm surprised of is that there isn't any word of layoffs with Skyservice. Transat better adapt and get 320's of their own. There was talks of substituting PTS (A333 mainly based in YVR) with 2 320's from their french wholly owned subsidiary Star Airlines (IATA:2R, ICAO:SEU).

As much as I HATE to admit this, their fleet is ill equipped for handling high frequency low yield sun destinations. They need to "double up" on their narrow bodies. I don't like the idea of 1011's and 310's being replaced with narrow plastic, from what I can see with Skyservice's success this winter, it works very very well.

Nevertheless, I firmly believe TS has a much better product. The level of service is much better than the two other alternatives here in Toronto (Air Canada aside). Movies in flight, clips on the destination during boarding, food, interior presentation and corporate branding, above par. All the best though those tough times Air Transat.

Grégoire
 
captaingomes
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RE: Air Transat To Lay-off 30% Of Its Workforce

Tue May 06, 2003 1:11 am

Air Transat has done quite well up until now, and weathered the storm reasonably well after their issues in 2001, most notably the Azores glider.

Of the charter airlines, I think Air Transat has the best chance of staying aloft. Somebody I know was saying they heard Transat will be cutting its fleet in half, with the A330's and L1011's to go, but I sincerely doubt that will happen. Either way, I worry about Skyservice or Transat this year, unless things start to rebound this summer.

By the way, what is the latest on Skyservice's A330's? And for Airman99o, you mentioned in a thread a few weeks ago that a major announcement was imminent at the time, but nothing happened that I'm aware of!  Big grin
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
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yyz717
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RE: Air Transat To Lay-off 30% Of Its Workforce

Tue May 06, 2003 2:46 am

We have to remember that TS has survived and largely prospered for 15 years...so we know their mgmt is competent. They have outlasted many other charter carriers. While this is bad news, they are just adjusting to the North Atlantic market realities.

As for their fleet composition, I would argue that now is the time to return the high-lease-rate A330's (if they have that flexibility). The L10's and 310's are paid for so they can sit idle if need be and not cost much.


I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
captaingomes
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Joined: Tue Feb 13, 2001 1:33 am

RE: Air Transat To Lay-off 30% Of Its Workforce

Tue May 06, 2003 3:14 am

A recent article in the globe and mail said they were trimming routes about 10% (or 15%, I don't recall) for the summer. Mr. Eustache, CEO of Air Transat said demand was well down, and things were tough, but Transat was more than prepared to take on the challenges, and was not suffering from a lack of liquidity. The L1011's are much too expensive to keep running unfortunately, and will likely leave very soon. The A310 is looking better and better for Transat, as it is cheap to acquire, not too bad to maintain, and provides a good size for trans-Atlantic services in these times with lower demand. I agree with Cessnapimp, maybe it's time Transat looks at A320's or other aircraft with similar capacity for southern destinations. I'm sure they can get some used A320's for next to nothing. Let Skyservice get rid of the "older" A320's, get new ones and face huge lease obligations on a sparkling brand new fleet that will end up sitting on the ground. I'm worried about Skyservice if they aren't able to secure some lucrative contracts in the next little while.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
Qb001
Posts: 1923
Joined: Fri Apr 28, 2000 12:42 am

RE: Air Transat To Lay-off 30% Of Its Workforce

Tue May 06, 2003 4:31 am

The article in "La Presse" went on to say that, if the rumor is true, that TS will abandon its Tristar. Kinda sad...
Never let the facts get in the way of a good theory.
 
captaingomes
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Joined: Tue Feb 13, 2001 1:33 am

RE: Air Transat To Lay-off 30% Of Its Workforce

Tue May 06, 2003 5:12 am

Funny how there was supposed to be a press release on what direction Transat was going with their fleet, and that was to happen quite a while ago. I wonder what the timeline would be for the Tristars to leave the fleet is that would be the case.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
SafeFlyer
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Joined: Fri Jan 05, 2001 6:41 am

RE: Air Transat To Lay-off 30% Of Its Workforce

Tue May 06, 2003 6:33 am

I'm not surprised by the annoucement since transatlantic bookings have been extremely slow up-to-date. As for the A330s going, I would be very, very surprised. When they leased the first 3 in 1999, the risk of a possible recession was probably studied and the Tristars were due for retirement anyways. Parts and spares are becoming rare and maintenance costs are rising not forgetting that a L-1011 burns a lot more fuel than the 330s.

CaptainGomes:
Just to clarify, Mr. Eustache is not the president and CEO of Air Transat. He's the big boss of the whole "patente à Transat", Allen B. Graham is the CEO of Air Transat.

I also read in my local newspaper this weekend (Le Droit), also affiliated with "Cyberpresse", that TS pilots were probably going on strike on May 27th. Wise move!  Yeah sure My father will be flying TS in a week and coming back May 30th I think. Anyone knows what TS will do If the pilots strand the pax at a foreign destination?
 
BWIA330
Posts: 821
Joined: Tue Jan 23, 2001 10:22 am

RE: Air Transat To Lay-off 30% Of Its Workforce

Wed May 07, 2003 9:26 am

Hey,

I read in an article on the net from Air Transat stating that they are trying to rework the scheduales to use the Airbus Aircraft (A310, A330) more than their L-1011's as the operating costs are cheaper. Do you all know when TS will retire their L-1011's? Would they replace them with more A310's or A330's or another type?

Best Regards,

BWIA330
 
rootsgirl
Posts: 512
Joined: Fri Mar 16, 2001 3:48 am

RE: Air Transat To Lay-off 30% Of Its Workforce

Wed May 07, 2003 12:47 pm

The announcement that SSV had was that it had renegotiated with Sunquest and they have signed a one billion dollar deal - to take acutal effect in the fall. I hope until then, that we can survive the slim pickings of the summer and that SSV and Transat stay aloft.

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