Air Canada said it is finalizing plans to suspend most of its operations if it can’t resolve a labour dispute with its pilots, and could begin winding down as early as Sunday.
The airline said it could begin a temporary halt to its operations as early as Sept. 15, when either party may issue a 72-hour strike or lockout notice.
“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 CEO of Air Canada, in a statement.
Talks between the pilots’ union, Air Line Pilots Association International (ALPA), continue, but the parties, “remain far apart,” the airline said. Air Canada and its pilots have been in negotiations for a new collective agreement for 15 months. The previous 10-year agreement was signed in 2014.
A strike or lockout notice would launch a 72-hour wind-down process affecting Air Canada and Air Canada Rouge flights, representing an estimated 110,000 passengers a day.
Air Canada Express flights would continue to operate, as they’re carried out by Jazz and PAL Airlines. These flights account for 20 percent of Air Canada’s daily customers, the airline said; many of those passengers ultimately connect on Air Canada flights.
Operations at Air Canada Cargo would also be impacted, as that division carries belly holds in aircraft or air freighters. The airline said it has begun limiting acceptance of some of these goods, given average shipment timelines.
Air Canada operates a fleet of 252 aircraft to 47 countries, which it said will have to be “repositioned or repatriated along with their crews.”
Ramping operations back up after a complete shutdown could take seven to 10 days once a settlement with ALPA is reached, the airline said.
Air Canada said it has also offered to submit to arbitration and acknowledged it would look to the federal government to intervene.
The airline has not released starting salaries for first officers, but has emphasized these pilots see pay increases when they graduate to captain or to operate larger aircraft.
In 2023, a captain earned on average between $214,075 and $351,958, plus pension and benefits.
ALPA has not recently commented on the negotiations, but appears to be seeking pay increases similar to other major North American airlines.
