IMPACT AND OPTIONSBREAKING DOWN AIR CANADA’S ‘MANAGED SHUTDOWN’ 

While many experts consider it requisite posturing during a labour negotiation – and an outcome too dire to ultimately be allowed to happen – Air Canada says it is working on contingency plans that would see it suspend most of its operations in the event that an agreement with its pilots union is not reached by Sunday (Sept. 15) when a 72-hour strike or lock-out notice could be triggered.

Air Canada says it remains “far apart” in contract talks with the Air Line Pilots Association (ALPA), which represents Air Canada 5,200 pilots, and airline president and CEO Michael Rosseau says, “Canadians have recently seen the chaos abrupt airline shutdowns cause for travellers, which obliges us to do everything we can to protect our customers from an increasingly likely work stoppage … We understand and apologize for the inconvenience this would cause our customers; however, a managed shutdown is the only responsible course available to us.”

Air Canada and Air Canada Rouge operate close to 670 daily flights on average and carry more than 110,000 passengers within Canada or internationally.

(Air Canada Express flights would continue to operate, as third-party carriers Jazz and PAL Airlines provide these services. However, these regional partners only carry about 20% of Air Canada’s daily customers, many of whom ultimately connect on Air Canada flights.)

So, what happens if the unthinkable actually happens?

Firstly, the airline is advising customers to use the airline’s goodwill policy to defer imminent travel – at no cost.

But for those who are travelling, the airline says it will make every effort to resume normal operations as quickly as possible once a settlement with union is reached; however, it also estimates that will take up to seven to 10 days to do so if there were to be a complete shutdown.

Impact

  • Under the plan announced on Monday to potentially suspend flying, an orderly wind-down of operations would begin once a 72-hour strike or lock-out notice is issued, which can occur any time after 00:01 EDT on Sunday, Sept. 15. Flights throughout the system would be progressively cancelled over three days, with a complete shutdown as early as 00:01 EDT on Wednesday, Sept. 18.
  • Some activities would need to start as early as Friday, Sept. 13, including the cancellation of some holiday packages and the grounding of some aircraft. Air Canada operates globally to 47 countries on six continents with a fleet of 252 aircraft, which will have to be repositioned or repatriated along with their crews.
  • Air Canada projects that unless a settlement is achieved within the 72-hour notice period, the number of passengers affected by the suspension plan will increase progressively during the period to reach approximately 110,000 daily after 72 hours. It adds that by optimally positioning aircraft ahead of a possible disruption, the airline will be able to more quickly restore regular service to customers having travel plans at that time. The aircraft will also be properly safeguarded and receive all necessary routine maintenance during this time.

Options

  • Air Canada advises that the latest information on a possible suspension of service can be found at aircanada.com/action.
  • All customers whose flights are cancelled by Air Canada would be notified and will be eligible for a full refund, which can be obtained online at aircanada.com or through the Air Canada mobile app.
  • The airline has also been arranging with other carriers to secure space for customers in the event of Air Canada flight cancellations. Customers will be notified by Air Canada or their travel agency if options for travel on another carrier are identified for them. However, seats on other carriers are expected to be very limited across all airlines, and refunds or accepting a future travel credit, or agreeing to travel on Air Canada at a later date, may be the only options available.
  • Since Aug. 27, Air Canada has had in place a goodwill policy allowing customers holding bookings on any fare type with travel between Sept. 15 and 23, 2024, to make changes if they wish to at no cost or to receive a credit for future travel. This policy will be expanded as warranted.
  • Under Canada’s Airline Passenger Protection Regulations, customers in Canada are not eligible for compensation for delayed or cancelled flights, meals, hotels or other incidental expenses for situations outside the carrier’s control such as a labour disruption. Air Canada will in all cases inform passengers of their rights under applicable rules if their flight is cancelled or delayed.
  • Customers with bookings whose flights are cancelled in the event of a labour disruption are strongly advised against going to the airport without a confirmed booking for a new flight and to check flight status on aircanada.com before going to the airport. Customers are also advised to use self-service tools as contact centre wait times are expected to be highly elevated.