Shifting Market Spurs AC & Its Pilots To Amend Long-Term Agreement
Bruce Parkinson, Open Jaw
Air Canada has released details of a successful conclusion to talks on amendments to 10-year labour agreement with its 3,500 pilots represented by the Air Canada Pilots Association (ACPA).
The goal of the changes to the current 10-year agreement reached in OCT 2014 is to boost commercial and operational flexibility and cost competitiveness. For their part, pilots will receive career growth opportunities and other advantages.
AC says the amendments give it the ability to expand the North American narrow-body fleet operated by Rouge according to a formula which will enable expanded Rouge presence in some regional markets. The objective here is to enhance the ability to compete with emerging North American Ultra Low Cost Carriers (ULCCs).
The amendments also include a number of improvements for Air Canada's pilots, notably around terms to defined-contribution plans and sick leave, and greater transferability between Air Canada and Rouge.
"These amendments voted on and ratified by our pilots further emphasize our pilots' alignment with Air Canada's successful business strategy to compete effectively in the highly competitive airline industry, and make adjustments of mutual benefit as the competitive environment evolves," said Benjamin Smith, President, Passenger Airlines.
"Their successful conclusion also underscores the transformative change in culture that is on-going at Air Canada and building the airline into a global champion."
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years.