Air Canada will gradually suspend its operations if it cannot reach a deal with the Air Line Pilot’s Association (ALPA) over wage demands. The development comes after 15 months of discussions with ALPA failed to culminate in an agreement. If a deal is not finalised, industrial action could affect up to 110,000 passengers daily.
The airline has until 15th September to reach an agreement with the union, which represents over 5,200 pilots at Air Canada and Air Canada Rouge. If an agreement is not achieved, either party could issue a 72-hour strike or lock-out notice. The airline’s 3-day wind-down plan would then be triggered. If this occurs, cancellation of holiday packages and the grounding of aircraft could begin on Friday, 13 September, while a full shutdown could materialise as early as Wednesday, 18 September.
Talks are continuing, but the sides remain opposed. If the parties cannot negotiate a settlement, the carrier could ask the Canadian government to intervene.
Michael Rousseau, President and Chief Executive Officer of Air Canada has stated:
“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.
We understand and apologize for the inconvenience this would cause our customers. However, a managed shutdown is the only responsible course available to us.”
Third-party carriers Jazz and PAL Airlines operate Air Canada Express flights meaning a potential shutdown will not impact passengers travelling on the subsidiary. However, it only carries 20% of the airline’s daily customers meaning cancellations could affect up to 110,000 travellers each day.
Air Canada will notify all passengers affected by cancellations. A full refund can then be acquired online or via the Air Canada mobile app.
However, under Canadian Law, customers in Canada are not eligible for compensation for flight delays or cancellations that are beyond the airline’s control. They are also ineligible for reimbursement for other expenses such as hotels or meals incurred because of industrial action.
As part of its goodwill policy, the airline is allowing passengers with bookings between 15-23 September to make changes to their ticket at no additional cost or receive a credit for future travel.
Any industrial action will also impact cargo operations, and Air Canada is already limiting the acceptance of perishable and live commercial goods.
The airline has advised passengers who receive notice of flight cancellations not to go to the airport without a confirmed booking for a new flight, and to check their flight status on Air Canada’s website before travelling.
If flights are suspended, it will take between 7-10 days for operations to return to normal after an agreement is reached meaning that if strike action does occur, it will cause disruption for some time.
Do you have an upcoming booking with Air Canada? Have your travel plans been impacted?
