Air Canada at risk of total shutdown

A potential full shutdown of Air Canada is on the horizon if an agreement is not reached between the airline and the union representing its flight attendants by early Saturday. Over 10,000 flight attendants are expected to strike around 1 a.m. EST on Saturday, which could lead to a company-imposed lockout affecting around 130,000 passengers daily.

The shutdown could leave approximately 25,000 Canadians stranded abroad. Air Canada has announced plans to cancel 500 flights by the end of Friday, with 87 domestic and 176 international flights already canceled by Friday lunchtime. The airline had initiated a gradual reduction of operations on Thursday, canceling 18 domestic and four international flights.

Canada's Federal Jobs Minister Patty Hajdu has called for a swift resolution, urging the parties to work with federal mediators to reach a deal. The Canadian Union of Public Employees (CUPE), representing the flight attendants, has declined voluntary arbitration, insisting that Air Canada should return to the bargaining table for negotiations on key issues such as pay raises.

Air Canada's chief operating officer, Mark Nasr, stated that locking out union members, even if it leads to flight halts, would enable an orderly restart process that could take up to a week. Contract talks between the union and Air Canada have been ongoing for about eight months without a provisional agreement. CUPE members voted in favor of a strike in July, with the union issuing a 72-hour strike notice on Wednesday. The airline responded with a lockout notice to prevent flight attendants from working on Saturday. The union rejected a proposal for binding arbitration, opting to negotiate a deal for its members to vote on. The duration of any potential grounding remains uncertain.