Air Canada is working on plans to start suspending operations ahead of a looming pilot strike, the carrier said in a statement Monday morning.
Flight cancellations could start as early as Friday.
Unless a settlement is reached by Sunday, either Air Canada or the Air Line Pilots Association (ALPA), which represents 5,200 Air Canada pilots, could issue a 72-hour lockout or strike notice.
Air Canada president and CEO Michael Rousseau said in a statement that while there was still time to reach an agreement with the pilots, “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.”
The 72-hour shutdown notice period could begin anytime after midnight on Sunday, with operations expected to come to a complete halt by Wednesday, Sept. 18. However, some operations would have to start winding down as early as Friday, the airline said.
Duncan Dee, former Air Canada chief operating officer, told Global News, “Air Canada will start winding down their operations by moving aircraft closer and closer to their bases, where they have crews and mechanics available to take care of those aircraft during a disruption so that in a restart of operations, they can do so much more quickly, with much less impact on travelers.”
Rosseau said 80 per cent of Air Canada’s passengers could be affected by work stoppages. The airline said it will begin an “orderly shutdown” of Air Canada and Air Canada Rouge operations once a strike or lockout notice is issued.
Air Canada Express flights will continue to operate, as third-party carriers Jazz and PAL Airlines provide these services. However, these regional partners carry only about 20 per cent of Air Canada’s daily customers, many of whom ultimately connect on Air Canada flights.
The airline said a work stoppage could affect 110,000 passengers a day.
The Air Line Pilots Association has not set a strike date, but the pilots have voted overwhelmingly to approve a strike mandate if an agreement on a new contract cannot be reached.
First Officer Charlene Hudy, chair of the Air Canada ALPA master executive council, said in a statement, “Rather than taking shots at the professional pilots who safely transport their passengers day in and day out, Air Canada should stop threatening to disrupt air travel and come to the bargaining table with serious proposals to keep the flagship Canadian carrier competitive in the global aviation market.”
Hudy said Air Canada was to blame for the looming disruptions, urging the airline to “get serious” about the negotiations.
“Air Canada continues to post record profits – and reward its executives handsomely – while expecting pilots to accept below market compensation,” she said.
Dee said that the impact of any work stoppage will be felt disproportionately by travellers in Ontario, Quebec and Atlantic Canada since WestJet no longer serves communities there.
He said while international travelers may have options outside of Air Canada, domestic travelers would be hit hardest.
“The travel, during this time of year, changes. So you go from vacationers primarily to business travelers and travelers who have much less, flexibility with their travel,” he said.
Under the airline’s policy, customers with tickets for travel between Sept. 15 and 23 can rebook on any other Air Canada flight with the same origin and destination up to Nov. 30 at no additional cost. Customers who want to cancel and rebook their travel for after that date will have their change fees waived but will have to pay any fare difference.
The pilots’ union says negotiations had stalled as of last week.
Hudy added, “What we can say is that as of last week, talks had completely stalled.”
Hudy did not share any further details of offers from Air Canada but said percentage increases in wages would depend on the seniority of the pilot. She said this would mean that junior pilots would likely see the highest increase in the event of a deal being reached.
“They live in the biggest cities across Canada and currently make a salary that makes it very hard to sustain a family,” Hudy said.
“One quarter of our pilots have a second job, with almost 80 per cent of those needing the job out of necessity. We are trying to change that. Additionally, due to our latest 10-year contract, our compensation has not kept up with inflation, nor the levels of our peer carriers.”
John Gradek, an aviation expert at McGill University, said Air Canada pilots get paid significantly less compared to their U.S. counterparts.
“There is a lot of catching up that has to be done both in terms of working conditions as well as salaries. The U.S. carriers have been significantly bumping up salaries for their pilots over the last 18 to 24 months, between 35 and 45 per cent increases,” he said.
Dee cautioned against comparing the Canadian and American aviation sectors.
“Air Canada pilots have pensions. Many U.S. commercial pilots have what’s called a 401K, which is basically a company and employee-funded RRSP. In the case of Air Canada, you’ve got different structures of compensation,” he said.
However, Gradek said it’s about unions wanting a share of the pie.
“The airlines have made great strides in terms of getting passengers to fly. And they’re making money. And I think that the unions are saying, okay, it’s time for us to share in the pie.”
Last week, Air Canada said in a statement that it intended to reach a negotiated settlement with the union.
The airline said progress has been made in its negotiations and it hopes to reach a deal, but it still faces the possibility of a strike by its 5,200 pilots as early as Sept. 17 when the union will be in a strike position.