Air Canada has already trimmed its capacity by 20 percent and is in the process of cutting 9,000 jobs.
It expects to trim its daily flights by 10 percent.
The measure also requires federal agencies to trim their spending by 0.38 percent this year, a total of $1.2 billion.
He has trimmed the work force by 5 percent, or 15,600 employees.
But more cuts were needed, so the board voted to trim the professional staff by 4.7 percent.
As a result, the Americans tried to trim the price by about 15 percent, the people close to the deal said.
The company has trimmed its work force by 32 percent since August 2000.
Now comes the hard part: trimming its work force by 10 percent.
The airline also trimmed its sales target by 0.5 percent.
In the interim, he contends, the city would only have to trim spending by 3 or 4 percent.