Air Canada says it’s preparing to suspend most of its operations if a deal is not reached with the union representing more than 5,000 pilots.
The airline issued a statement on Monday saying that while talks with the Air Line Pilots Association (ALPA) are active and ongoing, both sides remain far apart in negotiations.
If a bargaining agreement is not reached by Sunday, Sept. 15, the airline said either party would be authorized to issue a 72-hour strike or lock-out notice, triggering Air Canada’s three-day wind-down plan. This would see Air Canada and Air Canada Rouge gradually suspending flights, potentially as early as Sunday.
Air Canada and Air Canada Rouge operate an average of close to 670 daily flights, which carry more than 110,000 passengers.
Last month, the ALPA announced that 98 per cent of its members voted in favour of “achieving a new contractual agreement with Air Canada.” The employees have been negotiating with Air Canada since June 2023.
“Air Canada believes there is still time to reach an agreement with our pilot group, provided ALPA moderates its wage demands, which far exceed average Canadian wage increases,” said Michael Rousseau, President and Chief Executive Officer of Air Canada.
“However, Canadians have recently seen the chaos abrupt airline shutdowns cause for travellers, which obliges us to do everything we can to protect our customers from an increasingly likely work stoppage. This includes the extremely difficult decision to begin an orderly shutdown of Air Canada and Air Canada Rouge once a 72-hour strike or lock-out notice is given, possibly as early as this Sunday.”
‘Managed shutdown’ the only option: Air Canada CEO
Air Canada has proposed a 30 per cent wage increase for its more than 5,000 pilots over the next three years. The union has said it wants salaries commensurate with their U.S. counterparts. On Monday, Air Canada said talks with the ALPA were nearing an impasse over the union’s “excessive” wage demands.
The airline stated that in the event of a strike, Air Canada Express flights would continue to operate. Still, Air Canada noted that those regional partners only carry about 20 per cent of its daily customers.
Under the airline’s policy, customers with tickets for travel between Sept. 15 and 23 can rebook on any other Air Canada flight with the same origin and destination up to Nov. 30 at no additional cost. Customers who want to cancel and rebook their travel after that date will have their change fees waived but will have to pay any difference in fare.
“We understand and apologize for the inconvenience this would cause our customers. However, a managed shutdown is the only responsible course available to us,” added Rosseau.
“We are publicizing our plans to give the more than 110,000 people who travel with us each day greater certainty and the opportunity to reduce the risk of being stranded by using our goodwill policy to change or defer imminent travel at no cost. We are also alerting the Government of Canada to the potential disruption’s impact upon Canadians.”
The potential job action is the latest development in a summer full of Canadian travel interruptions. WestJet was forced to cancel more than 1,000 flights after mechanics went on strike before July 1.