Air Canada is rejecting incentives to keep flight attendants in Manitoba: premier

Two months after it announced plans to sue the airline for cutting the flight attendant jobs in the city, the province is now trying to sweet talk the airline into rethinking its decision. It's offering incentives such as a cut in the aviation fuel tax, although the initial reaction has been less than encouraging.

"We've offered Air Canada some ideas of how they can reduce costs, including some issues of movement with our government on aviation fuel for passenger flights," Premier Gary Doer said Tuesday.

The province recently cut the fuel tax for international cargo flights to encourage growth in the cargo industry.

"We would prefer to solve this with financial incentives which we have offered to Air Canada, which they have stubbornly refused to take," Doer said.

The airline declined to comment Tuesday, citing the ongoing court case.

"While it remains before the courts, it's not something we can discuss at this time," said spokesman Peter Fitzpatrick.

The controversy surrounds Air Canada's decision last June to close flight attendant bases in Winnipeg and Halifax to deal with rising fuel prices. The move was part of a plan to cut 1,200 of the airline's 24,000 employees.

In October, the Manitoba government filed notice in the Court of Queen's Bench that it would seek a ruling to force the airline to reopen the base. The government pointed to a law passed by Parliament when Air Canada was privatized in 1988. The Air Canada Public Participation Act requires the airline to maintain "operational and overhaul centres" in Winnipeg, Montreal and Mississauga, Ont.

The province argues that the term "operational centres" includes the flight attendant base. That could be an uphill court battle, as flight attendant bases are not actual buildings, but designated starting points for people to start their shift.

Air Canada continues to employ people at maintenance operations, a downtown call centre and other facilities in Winnipeg. A date for a court hearing has not been set.

The government would rather strike a deal with the airline than sue it, Doer said.

"I'm offering Air Canada an incentive to change their mind. Changing your mind is not a bad thing. I do that every day."