- More than 5,400 Air Canada (TSX:AC) pilots may walk off the job as the airline finalizes contingency plans to suspend most of its operations
- If no agreement between the company and the Air Line Pilots Association is reached, starting Sunday, either side may issue a 72-hour strike or lockout notice, initiating the airline’s three-day wind-down plan
- Air Canada anticipates that if a settlement is not reached, the number of passengers impacted by the suspension plan will gradually rise, reaching around 110,000 per day after 72 hours
- Air Canada stock (TSX:AC) last traded at C$15.25 per share
More than 5,400 Air Canada (TSX:AC) pilots may walk off the job as the airline finalizes contingency plans to suspend most of its operations.
Negotiations between the company and the Air Line Pilots Association (ALPA) continue, but the parties are still significantly divided. If no agreement is reached, starting Sunday, either side may issue a 72-hour strike or lockout notice, initiating the airline’s three-day wind-down plan.
The airline has offered to the union to submit to arbitration. The Federal Labour Minister had assisted the negotiation process by appointing a conciliator and mediator, and if a negotiated settlement is not reached, Air Canada would look to the government to intervene.
In a public statement, Air Canada’s president and CEO, Michael Rousseau, apologized for the inconvenience this would cause customers, but confessed a managed shutdown is the only responsible course available.
“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 lockout notice is given, possibly as early as this Sunday,” he said.
Air Canada anticipates that if a settlement is not reached within the 72-hour notice period, the number of passengers impacted by the suspension plan will gradually rise, reaching around 110,000 a day after 72 hours.
Cargo operations will also be disrupted. Air Canada Cargo transports perishable or live commercial goods, manufacturing components, and other time-sensitive items daily in the belly holds of its aircraft and air freighters.
The airline added that all customers whose flights were cancelled would be notified and will be eligible for a full refund. If there is a strike, the airline has a “goodwill policy” ready that would allow customers to change their travel plans at no additional cost if they booked them for between Sept. 15-23, 2024.
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) last traded at C$15.25 per share and has descended 18.41 per cent since the year began.
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(Top photo of Air Canada pilots protesting at Montreal Trudeau International Airport: Air Canada ALPA)