Ottawa travellers bracing for flight cancellations amid Air Canada strike talks

Air Canada is preparing for the possibility of a major shutdown as talks with its pilots' union, the Air Line Pilots Association (ALPA), remain deadlocked over wage demands. If an agreement is not reached soon, the airline could begin canceling flights as early as Friday, leading to a complete suspension of operations by Sept. 18.

The union, representing more than 5,200 pilots, is pushing for substantial pay increases to bring Canadian pilots' salaries closer to those of their U.S. counterparts. Last year, American pilots secured lucrative raises amid a surge in travel demand and pilot shortages. Air Canada pilots are seeking similar gains, with wage hikes possibly above 45 per cent.

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The potential shutdown could disrupt travel for approximately 110,000 passengers daily. Air Canada and its low-cost subsidiary, Air Canada Rouge, operate about 670 flights per day.

Travellers like Barb Chivers, who with three others heading to Sweden, are uncertain about their return flights, but are hopeful an agreement will be reached.

"It's not something I'm going to worry about," says Chivers. "I'm confident with Air Canada they will reach a deal."

If a shutdown occurs, Air Canada expects it would take up to 10 days to restore full operations. Airline analyst John Gradek estimates a 45 per cent wage increase would cost the airline between $500 million and $600 million over the life of the contract.

"Air Canada is kind of pinched in the possibility of either a lockout or a strike," says Gradek. "The gap is really significant and Air Canada, they recognize that's something must be given to these pilots to catch them up. I don't think Air Canada is really going to sign onto the 40 to 45 per cent range but that's what it's going to take in order to get these pilots to come to the table. The first four years of your contract as an Air Canada pilot your salary range is between $58,000 and $75,000 a year."

Gradek says the cost of a large wage jump is not necessarily unreasonable, given the airline's multibillion-dollar revenue, adding it may be the price to pay in order to prevent a total halt of operations.

"Air Canada has to realize that if you let this thing get to a strike or you take a lock out, the financial impact is going to be significant," he says. "And in my opinion, government is not going to step in. This is not a CP rail strike, this is not a national emergency, the nation does not depend on Air Canada solely to fly. There are three other carriers that are representing Canada with over 200 airplanes and this is not peak travel season so there is more than ample capacity in the marketplace to basically replace Air Canada, both domestically and internationally."

Air Canada is also in discussions with other airlines to assist stranded passengers in the event of flight cancellations. Some travelers, like Marsha Gillespie, have researched the situation and taken precautions.

"We always purchase cancellation interruption insurance," says Gillespie, who is travelling with Chivers. "We've been assured by our insurance carrier that if we have to stay a couple of days extra that our accommodations would be covered and likely our return flights as well if we must use another airline."

Talks between Air Canada and ALPA are ongoing, but both sides remain far apart. ALPA's president, Charlene Hudy, criticized the airline for threatening to disrupt travel and urged them to make a serious offer.

Air Canada CEO Michael Rousseau acknowledged the frustration of pilots but noted that the wage demands far exceed average increases in Canada, adding "There is still time to reach an agreement," but that wage expectations must be moderated.

The Canadian government is monitoring the situation closely, with Labour Minister Steven MacKinnon's office expressing hope that the parties will reach a deal to avoid widespread disruptions.

As negotiations continue, travelers remain on edge, bracing for potential cancellations along with the possibility of higher ticket prices in the future.

"That has been the big question how much of an increase in ticket prices are you going to get as a result of a 45 per cent wage increase," says Gradek. "Nobody knows because there is no relationship between ticket prices and costs because the ticket prices are established by the market ... but it's probably going to go up about three or four per cent."