Air Canada has union job-cut talks, shares fall MONTREAL (Reuters) =97 Shares of Air Canada fell 6 % Monday as the airline= =20 met with key unions opposed to its plans to slash labor costs through job=20 cuts and wage concessions. Air Canada shares closed 18 Canadian cents lower= =20 at C$2.87 on the Toronto Stock Exchange. The airline, Canada's largest and= =20 the world No. 11, was scheduled to meet with unions representing its 8,000= =20 cabin crew personnel and 9,500 airport and reservations workers. About 600= =20 flight attendants and 600 airport workers were slated to receive layoff=20 notices in the next few days, according to union officials.Unions=20 representing about 85 % of Air Canada's work force of 40,000 are opposed to= =20 layoffs as part of the airline's drive to cut annual labor costs by C$650=20 million ($439 million), or 23 %. On Thursday, the carrier unveiled plans to= =20 cut 3,600 jobs, or 9 % of its work force this year, and trim its fleet=20 capacity this spring. In announcing the moves =97 which are comparable to=20 cost-saving steps being taken by other airlines around the world =97 Air=20 Canada said the war in Iraq amounted to a "force majeure situation."=20 Money-losing Air Canada has almost C$13 billion of debt and aircraft lease= =20 obligations, less than C$600 million of cash, and a C$400 million debt=20 payment coming later up this year. Analysts expect the airline to post a=20 deep first-quarter loss. PILOTS BALK AT CONCESSIONS The Air Canada Pilots Association, which represents the 3,400 pilots at the= =20 mainline carrier, is awaiting a due diligence report on the airline from=20 the Toronto unit of Kroll Inc. Capt. Don Johnson, president of the pilots'= =20 union, said the due diligence =97 a detailed examination of the airline's=20 financial situation =97 is key to helping determine whether the pilots= should=20 even consider wage concessions at this point. "If it were to show that=20 there is nothing we can do to save the company, then it would be better for= =20 us to probably not do anything at this point," Johnson told Reuters. "But=20 all of that is speculative. We need to do the due diligence and we need to= =20 find out where we stand," he added. Johnson pointed to the predicament of=20 pilots at UAL Corp.'s United Airlines, who agreed to wage cuts but had to=20 make further concessions after the airline slipped into insolvency. Johnson= =20 said Air Canada pilots do not want to find themselves in a similar=20 situation. Air Canada's pilots remain in contact with company management,=20 but detailed wage contract discussions will be possible only when the due=20 diligence is done, Johnson said. He was unable to provide a date for=20 completion of the report. Air Canada was scheduled to talk Monday with=20 officials of the Canadian Auto Workers union, which represents its airport= =20 and reservations personnel, and the Air Canada component of the Canadian=20 Union of Public Employees, which represents the carrier's flight attendants. OTTAWA WATCHES DEVELOPMENTS Air Canada was once wholly owned by the Canadian government and Ottawa is=20 keeping close tabs on developments at the airline. Asked in Parliament=20 Monday if the government would ever consider buying shares in Air Canada,=20 Transport Minister David Collenette said: "With respect to Air Canada, we=20 are prepared to discuss any options which might make the situation better."= =20 Meanwhile, shares of WestJet Airlines Ltd., the Calgary-based no-frills=20 carrier that is Air Canada's chief rival, also fell Monday. WestJet was off= =20 62 Canadian cents, or 3.6 %, at C$16.58. Desjardins Securities upgraded=20 WestJet to a "buy" recommendation from "hold" Monday, despite the risk of a= =20 extended war in Iraq, because of the airline's potential to gain market=20 share from Air Canada. "WestJet is winning the battle for market share in=20 Canada and its competitive cost structure and healthy balance sheet are=20 allowing it to do so profitably," Desjardins analyst Nadi Tadros said in a= =20 morning note. "We expect that WestJet will establish itself as a national=20 carrier over the next three years." *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.thehummingbirdonline.com TnT Webdirectory: http://search.co.tt *********************************************************