Airline Plans Gradual Shutdown Amid Potential Pilot Strike Next Week
Air Canada is set to cease air cargo shipments on September 19 if its pilots proceed with a strike over unresolved labor negotiations. The airline announced on Monday that it is developing contingency plans for a phased cessation of most operations.
Discussions between Air Canada and the Air Line Pilots Association, which represents over 5,200 pilots of Air Canada and Air Canada Rouge, have stalled significantly, leaving the two parties far apart on contract terms. If an agreement is not reached by Sunday, either side may issue a 72-hour strike or lockout notice, triggering a three-day wind-down plan.
“Air Canada believes there is still an opportunity to reach an agreement with our pilots, provided that ALPA moderates its wage demands, which significantly exceed the average wage increases in Canada,” stated CEO Michael Rousseau. “We understand the potential inconvenience this may cause our customers and sincerely apologize. However, a managed shutdown is the only responsible option available to us.”
The airline is proactively notifying travelers and shippers regarding the potential work stoppage to allow for necessary adjustments to their plans. Last week, Air Canada indicated it would soon halt certain shipments to minimize possible disruptions. Bookings for live animals, horses, and human remains must be finalized by Tuesday, while the airline will stop accepting temperature-controlled, pharmaceutical products, fresh food, high-value items, dangerous goods, and domestic express parcels after Thursday.
Air Canada operates 252 aircraft across 47 countries, including 35 wide-body and freighter flights to the U.S. each week. The airline recently began service with a Boeing 767 freighter to Chicago O’Hare from Toronto three times per week, with additional freighter routes to Atlanta, Los Angeles, and Miami.
In the absence of a resolved contract, Air Canada plans to gradually cancel flights over three days, potentially leading to a total shutdown as early as 12:01 a.m. ET next Wednesday. Some aircraft may be grounded as soon as this Friday. This gradual approach will enable the airline to reposition or repatriate aircraft and crews methodically, facilitating a quick return to normal operations once the labor dispute is settled.
The flag carrier estimates it will take seven to ten days to resume regular operations following a complete shutdown. Air Canada and ALPA have been engaged in discussions for a collective bargaining agreement for the past 15 months. A recent 60-day mediation period led by the Canadian government concluded on August 30, initiating a three-week cooling-off phase before either side can act. The pilots have recently authorized union leaders to call a strike if negotiations remain deadlocked.
Reportedly, Air Canada has proposed a 30% salary increase for its pilots, which would include an upfront minimum increase of 20%, followed by annual raises over a three-year period. The airline argues that while it aims to ensure its pilots remain the highest paid in Canada, exorbitant wage demands are not justified, particularly when compared to U.S. counterparts such as Delta and United Airlines, which operate under different market conditions and have greater revenue opportunities.
Canada’s second-largest airline, WestJet, narrowly avoided a pilot strike last summer by reaching a last-minute agreement. WestJet was in the process of launching its first all-cargo operations using converted Boeing 737-800 freighters, but suspended its freighter network this year due to sluggish business.
Last month, Canada’s freight market faced a brief disruption from a 24-hour workers’ lockout by railroads. The federal government intervened, mandating the railroads’ reopening and sending the dispute to binding arbitration.
