Air Canada prepares for partial shutdown ahead of looming pilot strike

Air Canada is preparing to suspend operations as a potential pilot strike looms, the airline announced in a statement on Monday.

If an agreement is not reached by Sunday, either Air Canada or the Air Line Pilots Association (ALPA), representing 5,200 Air Canada pilots, could issue a 72-hour strike or lockout notice.

Air Canada president and CEO Michael Rousseau emphasized that while there is still time to negotiate a deal, the airline must prepare for the worst. “Canadians have recently seen the chaos caused by abrupt airline shutdowns, which obliges us to do everything we can to protect our customers from an increasingly likely work stoppage,” Rousseau said.

He noted that 80 per cent of Air Canada's passengers could be affected by the strike. In the event of a work stoppage, Air Canada will begin an "orderly shutdown" of its main operations, including Air Canada Rouge.

However, flights operated by Air Canada Express, through third-party carriers Jazz and PAL Airlines, will continue. These regional partners handle about 20 per cent of the airline’s daily customers, many of whom rely on connecting flights with Air Canada.

The airline estimates that a strike could disrupt travel for 110,000 passengers daily.

While the pilots' union, ALPA, has not set a strike date, its members have overwhelmingly approved a strike mandate if no agreement on a new contract is reached.

For customers scheduled to fly between September 15 and 23, Air Canada is offering rebooking options for flights with the same origin and destination up to November 30 at no extra charge. Travelers who wish to cancel and reschedule for after that period will have their change fees waived, though they may need to cover any fare differences.

Negotiations between Air Canada and the pilots have stalled, according to First Officer Charlene Hudy, chair of the Air Canada ALPA master executive council. "Due to the confidential nature of negotiations, we cannot comment on specific proposals being exchanged," Hudy said last Thursday. She added that talks had "completely stalled" as of last week.

Hudy declined to provide details on Air Canada's offers but indicated that salary increases in any deal would depend on pilot seniority, with junior pilots likely to see the largest increases. She highlighted that many junior pilots, who live in major Canadian cities, struggle to support families on their current wages.

“One-quarter of our pilots have a second job, and nearly 80 per cent of those do so out of necessity,” Hudy said. She also noted that pilot compensation has not kept pace with inflation or the pay levels of other airlines, due to a decade-long contract.

Air Canada stated last week that it remains committed to reaching a negotiated settlement. The airline expressed optimism about progress in the talks but acknowledged that a strike could occur as early as September 17 when the union is legally allowed to take action.