Open this photo in gallery:
Air Transat says it has tabled an offer and is waiting for the union to respond as it prepares to suspend flights.Armando Franca/The Associated Press
Contract talks continued late on Monday between Transat AT Inc. TRZ-T and the union that represents its 750 pilots as the airline prepared to wind down operations ahead of a possible strike on Wednesday.
Both sides said progress has been made toward a tentative collective agreement between the Montreal-based operator of Air Transat and the Air Line Pilots Association.
Transat on Monday began flying a special program to bring passengers home early, operating four such flights for customers scheduled to return on Wednesday, said Alex-Anne Carrier, a Transat spokeswoman.
Scheduled flights operated as usual late on Monday afternoon, despite Air Transat’s warning it would begin suspending service by then. “Our priority remains the same: to bring our travellers back home and limit the impact on their travel plans,” Ms. Carrier said.
The airline said Sunday that it would suspend all service as of Tuesday.
Air Transat pilots make push for equal pay with Air Canada
Air Transat is scheduled to fly 30 flights on Tuesday and 47 on Wednesday, according to aviation data company Cirium. No cancellations had been made as of 6:10 p.m. ET on Monday, Cirium said.
Geraint Harvey, a Western University professor who researches airline labour, said just the threat of cancelled flights will have a huge impact on passenger sentiment and future bookings.
“There’s going to be a lot of resentment from passengers, even if their flights aren’t affected,” Prof. Harvey said. “This kind of disruption at this time of year is going to be upsetting for them.”
Air Transat, already on shaky financial ground, faces a loss of revenue if it does cancel flights, he said.
The pilots are seeking better pay, working conditions and job security. Talks began almost a year ago.
The union has said its benchmark is the deal reached by Air Canada pilots in 2024. That agreement provided raises of 42 per cent over four years.
Air Transat said it has offered pilots a pay raise of 59 per cent over five years, with improvements to working conditions. The union said it has not received an offer that high.
Prof. Harvey said the Transat pilots are understandably seeking large pay hikes, having come through the tumult of the past several years in aviation.
“If you’re a pilot, you’re going to be looking for the very best deal, bearing in mind what’s happened over the last 10 years and thinking about the future,” he said.
Ms. Carrier said the company has tabled an offer and is waiting for the union to respond. “We are working tirelessly and still hope to reach an agreement during the day to minimize operational disruptions,” Ms. Carrier said.
The union told pilots in a memo on Monday that “progress has been made, but there is still work to do. We are working tirelessly to reach an agreement that achieves the collective priorities of our group.”
“We remain committed to negotiating in good faith until a deal can be reached to avoid a strike,” reads the memo, obtained by The Globe and Mail.
The pilots’ union issued the strike notice on Sunday, 72 hours ahead of the deadline. The company will also be in a legal lockout position on Wednesday, provided it issues the required notice.
Founded in 1986, Transat is a leisure-focused carrier that sells flights and vacation packages, and has a fleet of 43 planes.
Transat has struggled with a large debt to the federal government incurred during the pandemic. In the summer, the company renegotiated the debt in a deal that left it owing $334-million instead of $772-million, but gave Ottawa a 20-per-cent stake in the airline.
The agreement has angered Pierre Karl Péladeau, whose Financière Outremont Inc. owns 9.5 per cent of Transat. Mr. Péladeau, chief executive officer of Quebecor Inc., last week launched a battle for control of Transat’s boardroom. He labelled Transat a financial and operational underperformer.
Transat has not had a profitable year since 2018, when it made $10-million. The company is slated to report 2025 financial results on Dec. 18. Its share price on the Toronto Stock Exchange has fallen by 60 per cent over the past five years.
A takeover agreement the airline made with Air Canada fell apart in 2021 after the European regulator signalled it would block the deal.
