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Air Canada launches compensation policy after strike disrupts hundreds of thousands

Air Canada launches compensation policy after strike disrupts hundreds of thousands
Policy
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Michael Rousseau, President and Chief Executive Officer | Air Canada

After a multi-day cabin crew strike that led to the cancellation of hundreds of flights, Air Canada has resumed operations across its network. The airline announced it is introducing an “exceptional policy” aimed at reimbursing passengers for transportation expenses incurred due to the disruption.

The strike ended on Tuesday, August 19, after Air Canada and the Canadian Union of Public Employees (CUPE) reached an agreement. While flights have restarted, the airline cautioned that schedules may not return to normal for up to ten days. The company estimates at least half a million passengers were affected during the walkout.

On Tuesday, Air Canada stated it would cover transportation costs for travelers who made alternative arrangements while services were halted. Specifics about eligible expenses or reimbursement amounts have not yet been disclosed. Full refunds are available for customers whose flights were canceled during the strike period.

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Flexible rebooking options have also been introduced. Passengers with tickets between August 15 and 22 can switch their flight to another Air Canada or Air Canada Rouge service without additional charges, including some cases where rebooking on other airlines is permitted. For trips scheduled between August 23 and September 30, travelers can change their flight in the same cabin free of charge if changes are made at least two hours before departure.

According to Air Canada's website, 76,560 customers are expected to fly today; this includes 21,739 who were rebooked following Tuesday’s cancellations. Services are gradually resuming as the airline works to restore customer confidence. Mark Nasr, Executive Vice President and Chief Operations Officer at Air Canada, said:

“When customers buy a ticket on Air Canada, we are making a commitment to deliver them safely and on schedule. Following this disruption, we know confidence has been shaken. We’re working hard to fully restore their trust, starting by getting customers on their way again. To do that, we [are] introducing an exceptional policy.”

Air Canada began grounding flights on August 14 after receiving a 72-hour strike notice from CUPE. Travelers were advised about likely delays and cancellations ahead of time. The carrier confirmed yesterday that both its mainline and leisure operations would resume following the agreement with CUPE—an agreement which included a commitment from cabin crew members to return to work.

Flights have resumed but significant disruption remains: according to FlightAware data today, approximately 31% of scheduled flights—about 191 services—are still canceled. These include domestic routes as well as transborder flights connecting Canadian cities with major U.S. destinations such as Chicago and Los Angeles; long-haul international services like London Heathrow and Tokyo Narita remain affected as well.

Michael Rousseau, President and Chief Executive Officer of Air Canada, commented: “Restarting a major carrier like Air Canada is a complex undertaking. Full restoration may require a week or more.”

Negotiations between Air Canada and CUPE had been ongoing since March regarding a new collective agreement for over 10,000 flight attendants. Last week’s offer from the airline included a proposed pay increase of 38% over four years along with improved pensions and benefits packages; however, CUPE argued these measures did not keep pace with inflation or address unpaid duties performed while aircraft are grounded.

Following several days of mediation overseen by William Kaplan—a mutually agreed-upon mediator—the parties reached an agreement ending daily cancellations that had peaked at more than 700 per day between August 16 and August 18.

Details of the settlement remain confidential until ratification is complete.

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