Air Canada is laying off 16,500 employees.
Last week, Air Canada - the first Canadian airline to be hit hard by the pandemic - announced the temporary layoff of more than 5,100 flight attendants, including 1,500 members of its low-priced subsidiary Air Canada Rouge.
Air Canada says the two-month furloughs will affect about one-third of management and administrative and support staff, including head office employees, in addition to the front-line workers.
The lay-offs are expected to begin this week and continue through May.
The airline will be executing a company-wide cost reduction and capital deferral program that will target at least $500 million.
Drawing down operating lines of credit of approximately $1 billion, to provide additional liquidity.
WestJet has already halved its domestic capacity, while carriers including Porter Airlines and Air Transat have suspended all flights.
Additionally, Rovinescu, as well as Michael Rousseau, deputy chief executive and chief financial officer of Air Canada, have agreed to forgo 100% of their salary. "I thank all of our employees, as well as union leaders, for working with us constructively to quickly implement these measures".
Canada's second-largest airline, Air Transat, which is being acquired by Air Canada, also announced it would lay off almost 2,000 flight attendants, beginning in early April. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,250 airports in 195 countries. It's not clear how many pilots will be affected by the decision, but last week the Air Canada Pilots Association reached a deal with the airline to reduce pilot pay, allow pilots to retire earlier and plan for a maximum of 600 redundancies in the coming months.
Senior executives will give up 25-50% of their salaries while members of Air Canada's Board of Directors have agreed to a reduction of 25%.