Air Canada to suspend flights for potential labour disruption

Canada's largest airline Air Canada said on Monday it is finalizing contingency plans to gradually suspend most of its operations starting as early as Sept. 15 for potential labour disruption, reported Xinhua.

Talks between the company and the Air Line Pilots Association (ALPA), representing more than 5,200 pilots at Air Canada and Air Canada Rouge, continue, but the parties remain far apart, Air Canada said in a news release.

According to the release, unless an agreement is reached, beginning on Sept. 15, either party may issue a 72-hour strike or lock out notice, which would trigger the carrier's three-day wind down 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 chief executive officer of Air Canada.

"A managed shutdown is the only responsible course available to us," Rousseau said, adding that they are also alerting the government of Canada to the potential disruption's impact upon Canadians.

More than 110,000 people travel with Air Canada each day. Customers are advised to use the airline's goodwill policy to defer imminent travel at no cost.

Air Canada Express flights will continue to operate, as third-party carriers Jazz and PAL Airlines provide these services. However, these regional partners only carry about 20 percent of Air Canada's daily customers, many of whom ultimately connect on Air Canada flights, the release said.

Air Canada's pilots have been fighting for wage increases to match their higher-earning U.S. counterparts. They overwhelmingly voted in favor of the job action last month. The airline and the union entered into a three-week cooling off period, which is mandated by Canadian law, on Aug. 27.