Air Canada Prepares for Major Disruptions Amid Pilot Labor Dispute
Air Canada is bracing for a significant operational shutdown as it faces an "increasingly likely" strike or lockout situation with its pilots' union. The Montreal-based airline, alongside its subsidiary Air Canada Rouge, is rapidly advancing plans to suspend flights, starting as early as September 13, due to ongoing deadlock in contract negotiations with the Air Line Pilots Association (ALPA).
Negotiations between Air Canada and ALPA, which represents around 5,200 pilots at the airline, have been dragging on for over a year without significant progress. The airline has indicated that a strike or lockout could officially commence on September 18, provided that a 72-hour notice is given. To mitigate the impact on travelers, Air Canada plans to gradually halt flights over a three-day period, beginning with international and vacation destinations as soon as September 13.
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This looming labor dispute threatens to disrupt the travel plans of more than 110,000 passengers daily across 670 flights, both domestic and international. In anticipation of these disruptions, Air Canada is offering customers flexibility with flight changes and has secured a "very limited" number of seats on other airlines for those affected by cancellations. However, under federal regulations, travelers are entitled to refunds or credits but not compensation for lodging or food, as these disruptions fall outside the airline's control.
The pilots' union is pushing for substantial wage increases to bring their compensation in line with U.S. counterparts, who have recently secured significant pay hikes due to a pilot shortage. ALPA has cited that pilots at Delta Airlines, for instance, are earning up to 45 percent more than their Canadian peers. In contrast, Air Canada pilots had their last contract renewed with modest yearly raises of around 2 percent.
The airline has expressed a desire to resolve the situation amicably but has also stated that the union’s demands are far above what is considered reasonable. According to Air Canada CEO Michael Rousseau, the airline believes an agreement is still possible if ALPA moderates its wage demands.
With the deadline approaching and both sides still at odds, the prospect of a full-scale shutdown looms large. Air Canada anticipates that it could take between seven to ten days for operations to normalize once the shutdown is enacted. In the meantime, the airline continues to negotiate and make contingency plans to manage the fallout from this potential strike.
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