Air Canada Faces Potential Operational Shutdown

DALLAS — Air Canada (AC) is preparing to suspend most of its flights as negotiations with its pilots’ union over wage demands near a standstill.

The airline's pilots, represented by the Air Line Pilots Association (ALPA), are pushing for pay increases to align with their U.S. counterparts, who secured higher wages in 2023 during a pilot shortage and rising travel demand. 

If no agreement is reached, the airline may begin the shutdown as early as Sunday. AC operates approximately 670 flights daily, and the suspension could disrupt travel for around 110,000 passengers daily.

According to Air Canada’s CEO Michael Rousseau, the company is willing to negotiate but asserts that ALPA’s wage demands exceed typical Canadian wage growth. ALPA has not yet responded to requests for comment.

While negotiations continue, the two parties remain significantly divided. ALPA has highlighted that U.S. rival Delta Air Lines (DL) pays its pilots up to 45% more than AC. However, industry analysts point out that the U.S. market faces different challenges, such as more stringent barriers to pilot entry, making direct comparisons difficult.

The airline and union are in a three-week cooling-off period, which started on August 27, temporarily preventing a strike. Should a shutdown occur, Air Canada estimates it would take seven to 10 days to restore operations fully. 

In the meantime, the company is coordinating with other airlines to accommodate stranded passengers, and flights operated under the Air Canada Express brand will continue as third-party carriers handle them.

This is a developing story.