Please note that Air Canada is facing a grounded strike
Air Canada has announced that negotiations with the Airline Pilots Association (ALPA) have reached an impasse over pay, and the airline is preparing to cancel some flights in the coming days, with the strike likely to last three days starting Sept. 15.
Once the strike begins, a 72-hour strike action will begin at 12:01 am Eastern Time on Sunday, September 15, at which point Air Canada may phase out operations. More flights are expected to be canceled during those three days, and the company's operations could come to a complete halt by Wednesday, Sept. 18.
Air Canada operates 252 aircraft in 47 countries, including 35 widebody and cargo flights to the United States each week. The company began operating a 767 freighter in early June, flying from Toronto to Chicago's O 'Hare Airport three times a week. Other freight destinations in the United States are Atlanta, Los Angeles and Miami.
The airline operates six Boeing 767-300 converted freighters and manages cargo traffic on the lower levels of passenger aircraft. The company said last week it would soon stop receiving some shipments to minimize potential disruption. Air Canada Cargo said live animals, horses and human remains must be booked no later than Tuesday. The airline said it would no longer accept temperature control, medicines, fresh food, high-value or dangerous items and domestic express packages after Thursday.
Talks between the airline and the Air Line Pilots Association, which represents more than 5,200 pilots at Air Canada and Rouge Air Canada, have stalled, with the two sides still far apart on contract terms. Unless the two sides reach an agreement by Sunday, either side could issue a 72-hour strike or lockout notice, triggering Air Canada's planned three-day shutdown.
Air Canada CEO Michael Rousseau said in a statement: "Air Canada believes there is still time for us to reach an agreement with our pilot community as long as ALPA moderates its wage demands, which far exceed the average wage increase in Canada." We understand the inconvenience this has caused our customers and apologise for this. However, for us, a managed closure is the only responsible course of action."
Air Canada said it is alerting travellers and shippers of the possible shutdown so they can adjust their plans as needed.
Without a contract solution, Air Canada plans to phase out flights over three days, with a complete shutdown as early as 12:01 a.m. Et next Wednesday. Some planes could be grounded as soon as Friday. The gradual closure will allow the airline to relocate or repatriate aircraft and crew in an orderly manner in order to quickly resume normal service once the labor dispute is resolved.
Canada's flag carrier estimates it will take seven to 10 days to fully return to normal operations after a complete shutdown.
Air Canada and ALPA have been discussing a collective bargaining agreement for 15 months. The Canadian government's 60-day mediation ended on Aug. 30, triggering a three-week cooling-off period after which either side can take action against the other. Pilots recently authorized union leaders to call a strike if negotiations stall. Bloomberg News, citing people familiar with the matter, reported last week that the airline had offered pilots a 30 percent pay raise. Pilots at Canada's largest airlines will receive an initial pay increase of at least 20 per cent, followed by increases in each of the next three years, the report said.
Air Canada said the union "remains inflexible on its unreasonable wage demands" and argued that the company is committed to maintaining its pilots' status as Canada's highest-paid commercial pilots, but that it is unfair for pilots to demand higher wages comparable to those of U.S. competitors such as Delta and United Airlines, which face different market conditions. U.S. airlines, for example, have greater revenue opportunities and are negotiating deals at a time when the supply of pilots is tighter. ALPA pilots have previously said Delta's current pay rate is 45 percent higher than the Canadian airline's hourly rate.
Last summer, Canada's second-largest airline, WestJet, reached a last-minute deal that averted strike action by pilots. At the time, the airline was trying to launch its first all-cargo operation with a converted Boeing 737-800 freighter. The company shut down its freight network this year because of slow business.
The Canadian freight market was briefly affected by a 24-hour work stoppage by rail workers last month. The federal government ordered the railroad to reopen and sent the dispute to binding arbitration.
Once the strike begins, a 72-hour strike action will begin at 12:01 am Eastern Time on Sunday, September 15, at which point Air Canada may phase out operations. More flights are expected to be canceled during those three days, and the company's operations could come to a complete halt by Wednesday, Sept. 18.
Air Canada operates 252 aircraft in 47 countries, including 35 widebody and cargo flights to the United States each week. The company began operating a 767 freighter in early June, flying from Toronto to Chicago's O 'Hare Airport three times a week. Other freight destinations in the United States are Atlanta, Los Angeles and Miami.
The airline operates six Boeing 767-300 converted freighters and manages cargo traffic on the lower levels of passenger aircraft. The company said last week it would soon stop receiving some shipments to minimize potential disruption. Air Canada Cargo said live animals, horses and human remains must be booked no later than Tuesday. The airline said it would no longer accept temperature control, medicines, fresh food, high-value or dangerous items and domestic express packages after Thursday.
Talks between the airline and the Air Line Pilots Association, which represents more than 5,200 pilots at Air Canada and Rouge Air Canada, have stalled, with the two sides still far apart on contract terms. Unless the two sides reach an agreement by Sunday, either side could issue a 72-hour strike or lockout notice, triggering Air Canada's planned three-day shutdown.
Air Canada CEO Michael Rousseau said in a statement: "Air Canada believes there is still time for us to reach an agreement with our pilot community as long as ALPA moderates its wage demands, which far exceed the average wage increase in Canada." We understand the inconvenience this has caused our customers and apologise for this. However, for us, a managed closure is the only responsible course of action."
Air Canada said it is alerting travellers and shippers of the possible shutdown so they can adjust their plans as needed.
Without a contract solution, Air Canada plans to phase out flights over three days, with a complete shutdown as early as 12:01 a.m. Et next Wednesday. Some planes could be grounded as soon as Friday. The gradual closure will allow the airline to relocate or repatriate aircraft and crew in an orderly manner in order to quickly resume normal service once the labor dispute is resolved.
Canada's flag carrier estimates it will take seven to 10 days to fully return to normal operations after a complete shutdown.
Air Canada and ALPA have been discussing a collective bargaining agreement for 15 months. The Canadian government's 60-day mediation ended on Aug. 30, triggering a three-week cooling-off period after which either side can take action against the other. Pilots recently authorized union leaders to call a strike if negotiations stall. Bloomberg News, citing people familiar with the matter, reported last week that the airline had offered pilots a 30 percent pay raise. Pilots at Canada's largest airlines will receive an initial pay increase of at least 20 per cent, followed by increases in each of the next three years, the report said.
Air Canada said the union "remains inflexible on its unreasonable wage demands" and argued that the company is committed to maintaining its pilots' status as Canada's highest-paid commercial pilots, but that it is unfair for pilots to demand higher wages comparable to those of U.S. competitors such as Delta and United Airlines, which face different market conditions. U.S. airlines, for example, have greater revenue opportunities and are negotiating deals at a time when the supply of pilots is tighter. ALPA pilots have previously said Delta's current pay rate is 45 percent higher than the Canadian airline's hourly rate.
Last summer, Canada's second-largest airline, WestJet, reached a last-minute deal that averted strike action by pilots. At the time, the airline was trying to launch its first all-cargo operation with a converted Boeing 737-800 freighter. The company shut down its freight network this year because of slow business.
The Canadian freight market was briefly affected by a 24-hour work stoppage by rail workers last month. The federal government ordered the railroad to reopen and sent the dispute to binding arbitration.
