Air Canada and Pilots Still at Odds, Airline Plans for Possible Shutdown

Air Canada, Canada’s largest airline, is bracing for a possible operational shutdown as negotiations with its pilots’ union reach a critical juncture. 

The company announced on Monday that it is finalizing contingency plans to suspend most of its operations due to ongoing talks with the Air Line Pilots Association (ALPA), which represents over 5,200 pilots at Air Canada and Air Canada Rouge.

The airline and ALPA remain far apart in their negotiations, particularly regarding wage demands. Air Canada President and CEO Michael Rousseau said that while there is still time to reach an agreement, the company is preparing for a potential work stoppage. Beginning September 15, 2024, either party may issue a 72-hour strike or lock-out notice, which would trigger a three-day wind-down plan.

If implemented, the shutdown could affect approximately 110,000 passengers daily, representing 80% of Air Canada’s customer base. The airline is urging travelers with imminent bookings to take advantage of its goodwill policy, allowing them to change or defer travel at no cost.

Air Canada Express flights, operated by third-party carriers Jazz and PAL Airlines, are expected to continue. However, these regional flights serve only a fraction of the airline’s overall passenger load. A significant portion of these travelers typically transfer to mainline Air Canada flights to reach their final destinations.

The airline is taking steps to mitigate the impact on customers, including arranging alternative travel options with other carriers and offering full refunds for cancelled flights. However, Air Canada warns that seats on other airlines are expected to be very limited.

ALPA has not set a strike date but 98% of voting members have voted in favor of strike authorization. First Officer Charlene Hudy, chair of the Air Canada ALPA master executive council, urged the airline to “stop threatening to disrupt air travel and come to the bargaining table with serious proposals.”

The airline has also alerted the Canadian government to the potential disruption’s impact on the country, emphasizing that under Canada’s Airline Passenger Protection Regulations, customers are not eligible for compensation for situations outside the carrier’s control, such as labor disruptions.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

  1. Hope the airline sticks to their offers and doesnt cave. The rest of the world has had to deal with rollbacks and layoffs. Demanding ridiculous increases in salary today is crazy.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Air Canada: BMO Remains Bullish With $30 Price Target

During the 2022 Industrial Tour de Montreal, BMO Capital Markets sat down with Air Canada...

Monday, November 21, 2022, 12:49:24 PM

Datametrex To Provide COVID-19 Testing For Air Canada Employees

Datametrex AI (TSXV: DM) this morning issued a brief press release, notifying the market that...

Monday, January 11, 2021, 07:21:54 AM

Air Canada Gets Caught Trying to Profit Off of Yellowknife Evacuation

Earlier this week, the city of Yellowknife declared a state of emergency and subsequently issued...

Friday, August 18, 2023, 11:02:00 AM

Lost Luggage? Air Canada Might Have Already Donated It To Charity

An Ontario couple waited more than three months to be reunited with their lost luggage,...

Thursday, January 26, 2023, 06:21:00 AM

Canadian Labor Minister Rejects Railway Arbitration, Strike Looms

Canada’s Labor Minister Steven MacKinnon has rejected Canadian National Railway’s (TSX: CNR) request for arbitration,...

Friday, August 16, 2024, 11:07:00 AM