Air Canada is getting ready to droop most of its flight operations, doubtlessly starting on Sunday, due to stalled negotiations with the pilot union over wage needs. As Canada largest airline, this choice ought to disrupt over 110,000 passengers daily if a settlement isn’t reached soon.
Ongoing Union Dispute
The airline is in talks with the AirLine Pilots Association (ALPA), which represents over 5,2200 pilots. The pilots are disturbing wages comparable to their U.S. Counterparts, bringing up pay gaps of as much as 45%. U.S. Pilots at airlines like Delta receiving substantial pay will increase in 2023 due to labour shortages and high travel demand for, a context Air Canada pilots are using to push their case.
Air Canada’s Position
Despite the union’s needs, Air Canada maintains that those salaries will increase some distance better than average revenue increases in Canada. CEO Michael Rousseau expressed hope that an agreement should still be reached if the union adjusts its salary expectancies.
Potential Shutdown
If no settlement is reached, Air Canada and its subsidiary, Air Canada Rouge, may want to halt 670 every day flights, affecting lots of passengers. In preparation, the agency is coordinating with other airways to assist stranded passengers in case of sizable cancellations.
Cooling-Off Period
As of Aug. 27, each party entered a three-week cooling-off period, at some stage in which pilots are prohibited from hanging. If no deal is made by way of September 18, a total shutdown should take place, probably taking seven to 10 days for regular operations to resume.
Impact on Stock and Passengers
Air Canada’s stock has already fallen 18% this 12 months amid the uncertainty, and a full shutdown ought to worsen the scenario for both passengers and buyers.
FAQs:
- Why is Air Canada planning a shutdown?
Air Canada is facing a labour dispute with its pilot union over wage needs, that may bring about a suspension of flights. - How many flights will be affected?
If a shutdown occurs, approximately 670 each day flights will be affected, impacting 110,000 passengers each day. - What is the motive for the salary dispute?
The pilots are seeking wages if salary increases to suit those of the U.S. Airline pilots, who secured better salaries in 2023. - When could the shutdown begin?
If no agreement is reached, the shutdown should start as early as September 18, 2024. - What is Air Canada doing to help passengers?
Air Canada is in discussions with different airlines to house passengers in case of flight cancellations. - How long will it take to resume regular operations?
It could take seven to ten days to return to normal once the shutdown is absolutely in place.
