A major disruption to Air Transat’s holiday travel season was successfully avoided after the airline and its pilots’ union, the Air Line Pilots Association (ALPA), reached a tentative agreement just hours before a strike deadline.
The Montreal-based carrier and the union, representing 750 pilots, had been engaged in close to a year of intense negotiations to replace a contract that dated back to 2015. The union had issued a strike notice for 3 a.m. ET on Wednesday, forcing Air Transat to begin suspending flights the previous day in anticipation of a full shutdown.
Details of the Agreement
While the specific details were not immediately released, the union confirmed the deal is a “modern contract” that appropriately acknowledges the professional contributions of Air Transat pilots.
Pilots were primarily seeking better pay and improved working conditions to align their compensation with industry counterparts, particularly those at Air Canada, whose pilots secured a 42-per-cent pay hike last year. Analysts noted that under the previous deal, a mid-seniority Air Transat pilot earned about $200,000 annually, compared to $300,000 at Air Canada.
Restoring Operations
Air Transat CEO Annick Guérard apologized to customers whose travel plans were disrupted by the strike threat. With the agreement in place, the immediate focus shifts to rapidly restoring operations after the precautionary flight suspensions and ensuring a smooth service delivery throughout the busy holiday season.
Context of Financial Strain
The agreement provides crucial stability for Transat, which is currently facing financial challenges, including mounting losses, significant government bailout debt, and pressure from major investor Pierre Karl Péladeau. Experts believe the airline’s financial position was a key factor pushing both parties—management and the union—toward a compromise deal.
The agreement now moves to a vote, where a majority of union members must approve the contract before it is finalized.
