GURUGRAM- Canadian flag carrier Air Canada (AC) today (September 9, 2024) announced it is finalizing plans to shutdown the majority of its operations amid a potential strike by its pilots.
Negotiations between the company and the Air Line Pilots Association (ALPA), representing over 5,200 Air Canada and Air Canada Rouge pilots, remain in a stalemate.
Air Canada Shutdown Operations
Without an agreement, either party can issue a 72-hour strike or lock-out notice starting September 15, 2024, triggering the carrier’s three-day shutdown plan.
“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, the chaos caused by abrupt airline shutdowns obliges us to protect our customers from a likely work stoppage.”
As a result, Air Canada will begin an orderly shutdown of its mainline and Rouge operations once a strike or lock-out notice is issued, potentially as early as this Sunday.
Air Canada Express flights operated by Jazz and PAL Airlines will continue, but these regional carriers only account for about 20% of Air Canada’s daily passengers.
Rousseau apologized for the inconvenience and stated the company is publicizing its plans to give the more than 110,000 daily Air Canada travelers greater certainty.
Customers will be able to change or defer imminent travel at no cost under the airline’s goodwill policy. Air Canada is also alerting the Canadian government to the potential disruption’s impact on travelers.
Under Negotiations for 15 Months
Air Canada and the Air Line Pilots Association (ALPA) have been in negotiations for 15 months. While the two sides have reached a tentative agreement on a large number of items for a new collective agreement, the union remains inflexible on its unreasonable wage demands.
The company is committed to maintaining its pilots’ historic position as the best-paid commercial pilot in Canada and is continuing to negotiate to secure such an agreement. Alternatively, Air Canada has offered to the union to submit to arbitration.
To date, the Federal Labour Minister has assisted the negotiation process by appointing a conciliator and mediator. If a negotiated settlement is not reached, Air Canada would look to the government to intervene, as it has in recent labor disputes, to avoid major disruption for Canadian travelers and other stakeholders.
Also Read: United Airlines Pilot Salary in 2024: How to Join UA as a Pilot
What You Should Know as A Customer?
Air Canada’s top priority is addressing the needs of its customers and providing them with peace of mind. The airline has published detailed information about its contingency plans at www.aircanada.com/action.
All customers whose flights are canceled by Air Canada will be notified and eligible for a full refund.
Air Canada has also been working to secure space for its customers on other carriers in the event of flight cancellations. Customers will be notified by Air Canada or their travel agency if options for travel on another airline are identified.
However, seats on other carriers are expected to be very limited across the industry, and refunds accepting a future travel credit, or agreeing to travel on Air Canada at a later date, may be the only options available.
Since August 27, Air Canada has had a goodwill policy in place allowing customers holding bookings on any fare type with travel between September 15 and 23, 2024, to make changes at no cost or receive a credit for future travel. This policy will be expanded as needed.
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.
Air Canada will inform passengers of their rights under applicable rules if their flight is canceled or delayed.
Customers with bookings whose flights are canceled in the event of a labor disruption are strongly advised against going to the airport without a confirmed booking for a new flight.
Also Read: American Airlines Pilot Salary in 2024: How Much First Officer and Captain Earn?
Impact on Industry
Air Canada and its regional carrier Air Canada Rouge currently operate close to 670 daily flights on average, transporting more than 110,000 passengers within Canada and internationally. Every day, Air Canada flights bring approximately 24,000 Canadians back home from abroad and return about 15,000 foreign visitors to their home countries.
Under the contingency plan announced today, an orderly wind-down of operations would begin once a 72-hour strike or lock-out notice is issued, which can occur any time after 12:01 AM EDT on Sunday, September 15.
Flights throughout the system would be progressively canceled over three days, with a complete shutdown as early as 12:01 AM EDT on Wednesday, September 18. Some activities, including the cancellation of certain holiday packages and the grounding of some aircraft, would need to start as early as Friday, September 13.
Air Canada projects that unless a settlement is reached within the 72-hour notice period, the number of passengers affected by the suspension plan will increase progressively during the period to reach approximately 110,000 daily after 72 hours.
A gradual shutdown is required as it is the only responsible way to manage such a labor disruption for customers and employees alike.
Air Canada operates globally to 47 countries on six continents with a fleet of 252 aircraft, which will have to be repositioned or repatriated along with their crews.
By optimally positioning aircraft ahead of possible disruption, Air Canada will be able to more quickly restore regular service to customers having travel plans at that time. The aircraft will also be properly safeguarded and receive all necessary routine maintenance during this time.
Also Read Delta Airlines Pilot Salary 2024: How Much They Earn in A Year?
Cargo Flights Affected
Cargo operations will also be affected. Each day, Air Canada Cargo carries perishable or live commercial goods, components for manufacturers, and other time-sensitive items for Canadians in the belly holds of its aircraft and air freighters.
Already, the airline has begun limiting acceptance of some of these goods given average shipment timelines.
In the event of a suspension of operations, Air Canada will make every effort to resume normal operations as quickly as possible once a settlement with the Air Line Pilots Association (ALPA) is reached. However, it is estimated that it will take up to 7 to 10 days to do so after a complete shutdown.
What are your thoughts on Air Canada’s decision to shut down its operations amid negotiations with Pilots and a Potential strike? Let us know in the comments.
Also Read, Southwest Airlines Pilot Salary in 2024: How Much Captain and First Officer Earn?
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.
The post Air Canada 5,200 Pilots to Go on Strike, Airline Shutdown its Operations appeared first on Aviation A2Z.