Air Canada preparing to suspend operations as union talks near impasse

Air Canada says it is finalizing contingency plans to suspend most of its operations as talks with the union representing its pilots stall.

Issuing a lengthy statement Monday morning (Sept. 9), Air Canada says it remains “far apart” from the Air Line Pilots Association (ALPA) which represents more than 5,200 pilots at Air Canada and Air Canada Rouge.

Air Canada and the ALPA have been in talks for more than a year. Their last contract, which was ratified in 2014, provided pay boost of about two per cent annually. The pilots haven’t received a raise since last year.

Unless an agreement is reached, beginning on September 15, 2024, either party may issue a 72-hour strike or lock-out notice, which would trigger the carrier's three-day wind down plan and put pilots in a position to walk off the job on Sept. 18.

READ MORE: ACTA calls on feds to help Air Canada resolve possible strike, prevent disruptions

"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. 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," stated Michael Rousseau, president and CEO of Air Canada.

Rousseau went on to apologize for the inconvenience this would cause, adding that a shutdown is the “only responsible course available to us.”

“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,” he said.

Air Canada Express flights will continue to operate, as third-party carriers Jazz and PAL Airlines provide these services. However, these regional partners only carry about 20 per cent of Air Canada's daily customers, many of whom ultimately connect on Air Canada flights.

Advice for customers

Air Canada has posted an update advice page for customers here.

All customers whose flights are cancelled by Air Canada will be notified and be eligible for a full refund, which can be obtained online at www.aircanada.com or through the Air Canada mobile app.

The airline has also been arranging with other carriers to secure space for customers in the event of Air Canada flight cancellations. Customers will be notified by Air Canada or their travel agency if options for travel on another carrier are identified for them.

“Unfortunately, seats on other carriers are expected to be very limited across all airlines, and refunds or accepting a future travel credit, or agreeing to travel on Air Canada at a later date, may be the only options available,” the airline said.

READ MORE: Air Canada implements flexible rebooking policy ahead of possible strike

Since August 27, Air Canada has had in place a goodwill policy allowing customers holding bookings on any fare type with travel between September 15 and 23, 2024, to make changes if they wish to at no cost or to receive a credit for future travel.

“This policy will be expanded as warranted,” said Air Canada.

Under Canada's Airline Passenger Protection Regulations, customers in Canada are not eligible for compensation for delayed or cancelled flights, meals, hotels or other incidental expenses for situations outside the carrier's control such as a labour disruption.

Customers with bookings whose flights are cancelled in the event of a labour disruption are strongly advised against going to the airport without a confirmed booking for a new flight (check your flight's status on www.aircanada.com before going to the airport).

Customers are also advised to use self-service tools as contact centre wait times are expected to be highly elevated.

What’s the impact?

Thousands will be impacted if a strike occurs.

Air Canada and Air Canada Rouge presently operate close to 670 daily flights on average and carry more than 110,000 passengers within Canada or internationally.

Every day, Air Canada flights bring about 24,000 Canadians back home from abroad and return about 15,000 foreigners visiting Canada to their home country.

If flight suspensions do occur, a wind down of operations at Air Canada would begin once a 72-hour strike or lock-out notice is issued, which can occur any time after 00:01 EDT on Sunday, September 15.

Flights throughout the system would be progressively cancelled over three days, with a complete shutdown as early as 00:01 EDT on Wednesday, September 18, Air Canada says.

However, some activities would need to start as early as Friday, September 13, including the cancellation of some holiday packages and the grounding of some aircraft, the airline says.

Air Canada projects that unless a settlement is achieved within the 72-hour notice period, the number of passengers affected by the suspension plan will increase progressively during the period to reach approximately 110,000 daily after 72 hours.

Air Canada says a gradual shutdown is the “only responsible way” to manage the situation.

The strike would also have a global impact. Air Canada operates to 47 countries on six continents with a fleet of 252 aircraft, which will have to be repositioned or repatriated along with their crews.

By positioning aircraft ahead of a possible disruption, Air Canada says it will be able to more quickly restore regular service to customers having travel plans at that time.

Aircraft would also be properly safeguarded and receive all necessary routine maintenance during this time.

Cargo operations would be affected, too. Each day, Air Canada Cargo carries in the belly holds of its aircraft and air freighters perishable or live commercial goods, components for manufacturers, and other time-sensitive items for Canadians.

Already, the airline has begun limiting acceptance of some of these goods given average shipment timelines.

If Air Canada experiences a complete shutdown, it will take up to seven to 10 days to restore operations to normal.

Air Canada & ALPA negotiations

Air Canada and ALPA have been in discussions for 15 months now.

Last week, it was reported that Air Canada was offering it’s a pilots a pay boost of about 30 per cent over the next three years, as well as enhancements to pension and health benefits as well.

Although a tentative agreement has been reached on a large number of items for a new collective agreement, the union “remains inflexible on its unreasonable wage demands,” Air Canada said in its latest update.  

“Devastating” repercussions

ACTA issued a statement last week, urging Ottawa to engage promptly in facilitating a resolution to the possible strike.

“If its planes are grounded, the repercussions on the travel industry would be devastating, with Canadian consumers, employees, and businesses across the nation also feeling the effects,” ACTA said.

Wendy Paradis, president of ACTA, noted that members are fielding calls from people across the country and throughout the world concerned about potential disruptions to their long-awaited travel plans and critical business trips.

“This uncertainty alone threatens our industry's long-term growth,” Paradis stated. “We urge the federal government to take swift action in support of a resolution that will safeguard travel plans and protect our sector's stability.”

ACTA noted that it represents small to large-sized businesses across the country.

“For these businesses, a labour disruption at Air Canada would mean significant financial strain and uncertainty, threatening their ability to operate effectively and meet their clients' needs,” the association said. “It is essential that there be no disruption, as these businesses rely on a stable travel environment to thrive and ensure that Canadians can travel safely and with confidence.”

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