Air Canada strike? Airline prepares to shut down [Video]

Air Canada (AC.TO) is finalizing plans to suspend most of its operations, likely beginning Sunday, as talks with the pilot union are nearing an impasse over “inflexible” wage demands, the country’s largest airline said on Monday.

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 labor 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, …