Air Canada Braces For Potential Shutdown As Pilot Negotiations Reach Critical Point

Air Canada, Canada’s largest airline, is preparing for a possible shutdown of most of its operations as negotiations with its pilots’ union approach a deadlock. On September 9, 2024, the airline announced that it is finalizing contingency plans to suspend most of its services. The closure will potentially affect thousands of travelers and employees.

The Air Line Pilots Association (ALPA), representing over 5,200 pilots at Air Canada and Air Canada Rouge, has been in talks with the airline for over a year. Despite reaching tentative agreements on numerous items , wages remain a significant sticking point. Air Canada CEO Michael Rousseau stated that the ALPA’s wage demands “far exceed average Canadian wage increases,” describing them as “excessive.”

On the other hand, according to Investopedia, ALPA contends that corporate greed is holding up the talks. Charlene Hudy, the head of the union’s Air Canada contingent, accused the airline of “not listening to our most pressing needs at the negotiating table regarding fair compensation, respectable retirement benefits, and quality-of-life improvements.”

When To Expect Air Canada’s Potential Strike Or Lockout

Unless an agreement is reached by September 15, either side could issue a 72-hour strike or lockout notice. This would trigger the airline’s three-day wind-down plan, potentially leading to a total work stoppage as early as September 18. Air Canada and Air Canada Rouge operate approximately 670 daily flights, carrying over 110,000 passengers on average.

The airline has warned that a complete shutdown could take seven to ten days to resume normal operations. This potential shutdown comes when the airline industry is still recovering from the impacts of the COVID-19 pandemic. Air Canada’s shares have already declined by more than 18% this year, reflecting ongoing challenges in the sector.

The dispute indicates a larger trend in the airline industry, where pilots are pushing for better compensation and working conditions. Following new contracts between the four largest U.S. airlines and their pilots over the past 18 months, some flight crews in the U.S. now earn roughly double what their counterparts at Air Canada make.