Air Canada reaches last-minute agreement with pilots union, averting strike

By Gnaneshwar Rajan

(Reuters) -Air Canada said early on Sunday it had reached a tentative agreement with its pilots union over a new four-year collective agreement, in a last-minute deal that will avert a near-term strike or lockout.

Before the tentative agreement was reached, Canada's largest airline had been preparing to progressively cancel flights over three days and to completely shut down its operations as early as 12:01 a.m. EDT (0401 GMT) on Wednesday, Sept. 18.

Air Canada and Air Canada Rouge, which operate nearly 670 flights per day carrying about 110,000 passengers as well as freight, will now continue flying as normal, the airline said.

Air Canada said in a statement the terms of its new agreement with the Air Line Pilots Association (ALPA) representing more than 5,200 pilots will remain confidential, pending a ratification vote by its members expected to be completed over the next month.