In a scenario all too familiar since the advent of the regional jet age, the pilots of Air Canada and its regional airline subsidiary, Air Canada Jazz, could hold the key to the insolvent company’s plans to field at least 90 new jets from Bombardier and Embraer. A pair of MOUs for 15 Bombardier CRJ200s, 30 CRJ700s and 45 Embraer 190s signed in late December remains subject to Air Canada’s ability to attract $4 billion in new investment upon emerging from bankruptcy protection. But the largest potential investor, Hong Kong-based businessman Victor Li, has made his proposed $650 million contribution contingent on the company’s ability to resolve a conflict between Air Canada pilots and those flying for Air Canada Jazz over who controls the right to fly the new jets.
It all should have come as no surprise to Air Canada, which until it formed Air Canada Jazz from the remnants of its four wholly owned regional subsidiaries assigned any newly acquired 50-seat CRJs to the mainline, avoiding the kind of conflict that has resulted in costly and time-consuming wrangling over RJ control at nearly every major airline in the U.S. But as the airline fell deeper and deeper into debt, Air Canada could no longer ignore the cost benefits of the U.S. model and created Jazz in part to deploy regional jets more cheaply and efficiently. Jazz now flies 10 CRJ200s and 10 BAE 146s in accordance with a deal forged between Air Canada and its mainline pilots that, according to the Air Canada Pilots Association, restricts Jazz from flying any more regional jets certified to carry 50 seats or more.
