Air Canada work stoppage would hurt businesses as well as passengers, P.E.I. officials say

Officials on Prince Edward Island are closely watching developments around a possible Air Canada shutdown as a deadline looms in a labour dispute with the company's pilots.

The airline's managershave called for the federal government to be ready to intervene to avoid the major disruptions a shutdown would cause for more than 110,000 travellers a day.

Starting Sunday, Air Canada will be in a positionto issue a 72-hour notice of alockout, and its pilots' union is equally able to signal the start of a legal strike in 72 hours. The airline has said such notice would trigger its three-day wind-down plan heading to a full work stoppage.

"Everybody is trying to make alternate plans and travelling. We are a large nation that depends on air travel and it is essential in this country," Bobby Morrissey, the MP for P.E.I.'s Egmont riding, told CBC News on Friday.

"Government has to respect both sides. The bargaining unit, under the legislation, has the right to negotiate on behalf of their workers, but at the same time, government has an overall responsibility to ensure that transportation remains effective and that transportation is there for those that need it."

Morrissey said Transportation Minister Pablo Rodriguez continues to monitor the situation, but the hope is the two sides can negotiate a resolution to avoid a shutdown.

Prime Minister Justin Trudeau said on Fridaythat it's up to Air Canada and the union representing its pilots to reach an agreement to avoid disrupting travellers and businesses.

The airline says the pilots' union is being inflexible with "unreasonable wage demands." The union has said corporate greed is holding up talks, adding that Air Canada continues to post record profits while expecting pilots to accept below-market compensation.

'Increasingly concerned'

The airline's flights in the month of September represent more than 70 per cent of the total seat capacity at P.E.I.'s largest airport, carrying around 1,200 passengers a day along with cargo, Charlottetown Airport Authority CEO Doug Newsonsaid in a statement to CBC News.

"As each day passes with no resolution, we become increasingly concerned [about] the impact this may have on our community, passengers, and the province's tourism industry, which remains very busy during the fall shoulder season," Newson said in the statement.

"We encourage all travelers to stay informed about their flight status. Keeping up to date with official updates from Air Canada will help manage your travel expectations."

Kent Scales, president of the Tourism Industry Association of P.E.I.'s board of directors, wrote a letter to federal officials this week to express concern over the possibility of an Air Canada work stoppage.

He wrote that the province is entering one of its busiest periods of the year for leisure and business travel, and encouraged Ottawa to support the negotiations.

"Air Canada provides an essential service for bringing visitors to our shores, and any disruption in their operations particularly during the busy fall season would cause widespread challenges," Scales wrote.

"Any disruption in air travel would result in mass cancellations, reduced bookingsand decreased visitor spending, affecting the livelihoods of countless Islanders. Additionally, the broader economic ripple effects would be felt by businesses and workers already struggling to recover from the financial impacts of the pandemic."