Air Canada is finalizing contingency plans to suspend most of its operations as talks with the pilot union are near an impasse, the country's largest airline said on Monday. The airline's shares have lost more than 18 per cent of their value this year. A complete shutdown of the carrier's operations could leave thousands of passengers stranded across the nation. Air Canada and its subsidiary Air Canada Rouge operate close to 670 flights daily. Talks between Air Canada and the Air Line Pilots Association (ALPA), which represents more than 5,200 pilots at Canada's largest carrier, are continuing, but both parties remain far apart, the company said. Unless they reach a settlement, the three-day suspension plan is likely to affect 110,000 passengers daily once the total shutdown is in place, according to the airline's projections, with the suspension likely to begin as early as Sept. 15. Air Canada's pilots have been advocating for unprecedented wage increases to close the salary disparity with their higher-earning U.S. peers, who achieved record contracts in 2023 amid pilot shortages and robust travel demand. The union and the airline had entered into a three-week cooling-off period, mandated by Canadian law, on Aug. 27. "Air Canada believes there is still time to reach an agreement with our pilot group, provided ALPA moderates its wage demands which far exceed average Canadian wage increases," CEO Michael Rousseau said on Monday. ALPA did not immediately respond to a Reuters request for comment. Air Canada also anticipates it would take seven to 10 days for normal operations to resume once the complete shutdown is in place. The company is in talks with other airlines to accommodate its stranded passengers in the event of flight cancellations, it said, adding that flights under the Air Canada Express brand will continue to operate as they are operated by third-party carriers. ## Impact on Passengers and Operations The potential shutdown is a major blow to the airline industry and could have significant repercussions for travelers. ### Impact on Passengers The impact on passengers is significant. If Air Canada is forced to shut down, thousands of passengers will be left stranded. ### Impact on Operations The shutdown would also have a significant impact on Air Canada's operations. The airline would need to suspend most of its flights, which would cause major disruptions to travel plans. ## Potential Solutions The situation is still fluid and a resolution could be reached. However, the longer the stalemate continues, the more likely a shutdown becomes. ### Moderating Wage Demands The most likely way to avoid a shutdown is for both parties to compromise. Air Canada has called for ALPA to moderate its wage demands. The union, however, has indicated that it is unlikely to budge on this issue. ### Third-Party Intervention A third-party mediator could also be brought in to help the two sides reach an agreement. However, it is unclear if either party is willing to accept such intervention. ## Conclusion The potential shutdown of Air Canada is a major development in the airline industry. It is unclear what the ultimate outcome will be, but the situation highlights the importance of labor relations in the industry. ## What's Next? The next few days are crucial for both sides. It is likely that they will continue to negotiate, but a shutdown remains a possibility. Travelers should monitor the situation closely and be prepared for potential disruptions to their travel plans. The situation is an important reminder of the power of labor unions and the importance of reaching a fair and equitable agreement between employers and employees. In the coming days, both parties will need to find a way to bridge the gap in their demands to avoid a potentially devastating shutdown. The outcome of these negotiations will have a significant impact on Air Canada, its employees, and its passengers.