Monday, September 9, 2024 Air Canada has announced that it is preparing for a potential orderly shutdown of its operations in response to ongoing labor negotiations with the Air Line Pilots Association (ALPA). The talks, which have been in progress for over 15 months, have yet to reach an agreement, with the union’s wage demands standing as a significant sticking point. As a result, Air Canada and its subsidiary Air Canada Rouge may begin gradually suspending flights starting September 15, 2024.
Air Canada’s President and CEO, Michael Rousseau, stated that while the company remains hopeful for a resolution, it must prepare for the potential disruption. In the event of a strike or lockout notice from ALPA, the airline will implement a three-day wind-down of operations, potentially leading to a full shutdown by September 18, 2024. Goodwill Policy for Passengers To mitigate the impact on customers, Air Canada has activated its goodwill policy, allowing passengers with bookings between September 15 and September 23 to change or defer their travel plans at no additional cost.
The airline is advising travelers to use self-service tools and avoid going to the airport without confirmed bookings, as wait times at contact centers are expected to be high. Air Canada Express, operated by third-party carriers like Jazz and PAL Airlines, will continue running as usual. However, these regional flights only cover about 20% of Air Canada’s daily passengers, many of whom will still be affected by the main carrier’s potential shutdown.
Impact on Operations and Passengers Air Canada operates approximately 670 daily flights, serving over 110,000 passengers globally. A gradual shutdown will help manage the logistics of grounding aircraft, repositioning crews, and ensuring maintenance operations. Cargo operations will also be impacted, with the airline beginning to limit the acceptance of time-sensitive goods.
In the event of a shutdown, Air Canada plans to resume normal operations as quickly as possible once a settlement with ALPA is reached, although it could take 7 to 10 days to fully restore services. Negotiations and Potential Government Intervention Negotiations between Air Canada and ALPA have made progress on many fronts, but wage disputes remain unresolved. The airline has offered to submit to arbitration, but so far, ALPA has not agreed.
The Federal Labour Minister has been involved in the process, and Air Canada hopes the government will intervene, as it has in other labor disputes, to prevent significant disruption for Canadian travelers..
