Air Canada faces the prospect of an almost total shutdown of operations from next week amid a lengthy dispute with pilots.
The carrier said it was is finalising contingency plans to suspend most of its operations.
Talks between the company and Canada’s Air Line Pilots Association (ALPA), representing more than 5,200 pilots at Air Canada and budget arm Air Canada Rouge, continue, “but the parties remain far apart”.
The airline warned: “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.”
Air Canada Express flights will continue to operate, as third-party carriers provide these services.
But these regional partners only carry about 20% of the group’s 110,00 daily passengers, many who ultimately connect onto Air Canada flights.
Air Canada and Air Canada Rouge operate almost 670 flights a day.
“In the event of a suspension of operations, Air Canada will make every effort to resume normal operations as quickly as possible once a settlement with ALPA is reached. It is estimated however it will take up to seven to 10 days to do so after a complete shutdown,” the company said.
Air Canada and ALPA have been in discussions for 15 months.
“Although 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,” the airline said.
Chief executive Michael Rousseau said: ”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.”
He added: ”We understand and apologise for the inconvenience this would cause our customers.
“However, a managed shutdown is the only responsible course available to us.
“We are publicising 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.”