Air Canada Prepares for Shutdown as Union Talks Reach Impasse

Air Canada is finalizing contingency plans to suspend most of its operations and talks between the airline and the Air Line Pilots Association (ALPA) union reach an impasse. The shutdown could begin as early as Sept. 15 and will occur gradually over three days.

“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,” said Michael Rousseau, president and CEO of Air Canada. “However, Canadians have recently seen the chaos abrupt airline shutdowns cause for travelers, which obliges us to do everything we can to protect our customers from an increasingly likely work stoppage.”

He called the decision to shut down Air Canada and Air Canada Rouge an “extremely difficult decision,” but said it’s the only option if a 72-hour strike or lockout notice is given. Unless an agreement is reached by Sept. 15, either party may can issue the 72-hour notice.

“We understand and apologize for the inconvenience this would cause our customers,” he added. “However, a managed shutdown is the only responsible course available to us.”

He said Air Canada is publicizing its plans to give travelers the opportunity to reduce the risk of being stranded by using the line’s goodwill policy, which allows them to change or defer imminent travel at no cost.

Air Canada Express flights will continue to operate, as third-party carriers Jazz and PAL Airlines provide these services and their pilots are not part of the negotiations. These regional carriers only carry about 20% of Air Canada’s daily customers.

All customers whose flights are canceled by Air Canada would be notified and will be eligible for a full refund, which can be obtained online at aircanada.com or through the Air Canada mobile app.

Air Canada has also been arranging with other carriers to secure space for customers in the event of flight cancellations. Customers will be notified by Air Canada or their travel agency if options for travel on another carrier are identified for them. Seats on other carriers are expected to be very limited across all airlines, and refunds or accepting a future travel credit, are agreeing to travel on Air Canada at a later date, might be the only options available.

Since Aug. 27, Air Canada has had a goodwill policy in place allowing customers holding bookings on any fare type with travel between Sept. 15 and 23, 2024 to make changes if they wish at no cost or to receive a credit for future travel. This policy will be expanded as warranted.

Under Canada’s Airline Passenger Protection Regulations, customers in Canada are not eligible for compensation for delayed or canceled flights, meals, hotels or other incidental expenses for situations outside the carrier’s control such as a labor disruption. Customers with bookings whose flights are canceled are strongly advised against going to the airport without a confirmed booking for a new flight. Customers are also advised to use self-service tools as contact center wait times are expected to be long.