Air Canada prepares to shut down as pilots strike over pay
Pilots said the current pay rates at US rival Delta Air Lines are up to 45% higher than the Canadian carrier’s hourly rates
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Air Canada is finalising plans to suspend most of its operations, likely starting on Sunday, as talks with the pilot union are nearing an impasse over “inflexible” wage demands, the country’s largest airline has said.
Air Canada and its low-cost subsidiary, Air Canada Rouge, together operate nearly 670 flights per day. Unless they reach a settlement with the Air Line Pilots Association, the shutdown could affect 110,000 passengers daily.
The airline’s pilots have been pushing to close the salary gap with their U.S. peers, who signed lucrative labour deals in 2023 amid pilot shortages and strong travel demand.
“Air Canada should stop threatening to disrupt air travel and come to the bargaining table with serious proposals to keep the flagship Canadian carrier competitive in the global aviation market,” said Charlene Hudy, who heads the local union representing the airline’s pilots.
Talks between ALPA, which represents more than 5,200 pilots at the carrier, are continuing, but both parties remain far apart, the company said.
“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,” CEO Michael Rousseau said.
ALPA pilots have previously said the current pay rates at U.S. rival Delta Air Lines are up to 45% higher than the Canadian carrier’s hourly pay rates.
The model has been under fierce scrutiny ever since a mid-air blowout on one of the type earlier this year.
“We appreciate their (Air Canada pilots) frustration, but also note that the situation is not exactly apples to apples given the barriers to entry around pilot supply in the U.S.,” TD Cowen analyst Thomas Fitzgerald wrote in a note last week.
On Aug. 27, the union and the airline entered into a mandated three-week cooling-off period, during which the union cannot go on strike.
Air Canada anticipates it would take seven to 10 days for normal operations to resume, once the complete shutdown is in place.
The company said it is in talks with other airlines to accommodate its stranded passengers in the event of flight cancellations.
“Our government firmly believes in the collective bargaining process and Canadians are counting on the parties to get a deal,” a statement from Canadian Labour Minister Steven MacKinnon’s office said.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments