- Air Canada (TSX:AC) and the union representing thousands of its pilots negotiated a new labour deal and averted a nationwide shutdown
- The airline’s team said it had reached a tentative four-year collective agreement with the Air Line Pilots Association
- Customers who used the airline’s labour disruption goodwill policy to reschedule their flights originally set between Sept. 15 and 23 to a date before Nov. 30, 2024, can revert their booking to the original flight in the same cabin
- Air Canada stock opened trading at C$16.50 per share
Air Canada (TSX:AC) and the union representing thousands of its pilots negotiated a new labour deal and averted a nationwide shutdown.
In a statement, the airline’s team said it had reached a last-minute tentative four-year collective agreement with the Air Line Pilots Association (ALPA), which represents more than 5,200 pilots at Air Canada and Air Canada Rouge.
The announcement was made shortly after midnight on Sunday, which would have been the deadline to issue 72-hour strike notice. Those with flights scheduled received an email alerting them that their flights would not be disrupted.
Both sides seemed far apart last week when Air Canada stated it had offered salary increases of more than 30 per cent over four years, plus improvements to benefits, and said the union was being inflexible with “unreasonable wage demands.”
The terms of the new agreement are being kept confidential until they are ratified by the membership, which is expected to occur within the next month, and approved by the Air Canada Board of Directors, but it was revealed that a framework for the airline’s future growth has been established.
Customers who used the airline’s labour disruption goodwill policy to reschedule their flights originally set between Sept. 15 and 23 to a date before Nov. 30, 2024, can revert their booking to the original flight in the same cabin at no additional cost, provided there is available space.
Air Canada and Air Canada Rouge will continue their operations as usual.
Air Canada is Canada’s largest airline with a presence in more than 180 airports in Canada, the United States and internationally across six continents. The airline and Air Canada Rouge operate close to 670 daily flights on average and carry more than 110,000 passengers within Canada or internationally.
Air Canada stock (TSX:AC) opened trading more than 4 per cent higher at C$16.50 per share, but has descended 15.66 per cent since the year began.
Join the discussion: Find out what everybody’s saying about this airline stock’s potential pilot strike on the Air Canada Bullboard, and check out Stockhouse’s stock forums and message boards.
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(Top photo via Air Canada)
