**Air Canada Prepares for Shutdown as Pilot Union Talks Stall Over Wage Demands**

Air Canada is bracing for a potential shutdown as negotiations with its pilot union reach a critical juncture. With the three-week cooling-off period—mandated by Canadian law—set to expire soon, the airline is preparing contingency plans to halt the majority of its operations if an agreement cannot be reached.

**Air Canada Prepares for Shutdown as Pilot Union Talks Stall Over Wage Demands**

The dispute centers on wage demands from the Air Line Pilots Association (ALPA), which represents over 5,200 pilots at Canada’s largest airline. The union is pushing for significant pay increases to bridge the gap between Air Canada’s pilots and their U.S. counterparts, who secured historic pay raises in 2023. These increases came amid a global pilot shortage and rising demand for air travel, further intensifying the pressure on Air Canada to meet ALPA’s demands.

Despite ongoing discussions, the two sides remain far apart. Air Canada has expressed frustration with the union’s wage expectations, which the airline claims far surpass average Canadian wage growth. CEO Michael Rousseau remains hopeful but insists ALPA must adjust its demands to reflect a more moderate position.

The situation is time-sensitive. Both the airline and the union have the legal right to issue a 72-hour notice of strike or lockout beginning Sunday, which would trigger a gradual three-day wind-down of operations, potentially starting as soon as September 15. The plan would affect not only Air Canada but also its low-cost subsidiary, Air Canada Rouge, disrupting travel plans for thousands of passengers.

Air Canada continues to emphasize its willingness to negotiate, stressing that a deal is still possible if ALPA tempers its wage increase demands. However, unless significant progress is made soon, the airline could be forced into an unprecedented suspension of flights, marking a significant disruption in Canadian air travel.

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