Air Canada is preparing for a potential shutdown of most operations next week as contract talks with its pilots' union near an impasse.

Here are five things Canadians should know about the situation, and how it could affect travel plans:

What is the timeline for a potential strike or lockout?

Air Canada said Monday that a 72-hour strike or lockout notice could be issued as early as Sunday, Sept. 15. At that point, the airline would begin winding down operations, a process that would take place gradually over three days. The airline says its "managed shutdown" plan is meant to minimize airport chaos and prevent travellers from being stranded.

What should I do if have a flight scheduled for next week?

If you wish to postpone your trip, Air Canada is allowing customers with travel scheduled between Sept. 15 and 23 to make changes right now to their booking at no cost. You can also elect to cancel your flight and receive a credit for future travel instead.

If you choose to keep your booking and a strike or lockout notice is issued and your flight is cancelled, Air Canada will notify you and you'll be eligible for a full refund.

What if my flight is scheduled for later in the month? How long could disruptions at Air Canada last?

If a work stoppage occurs, Air Canada says it will make every effort to resume normal operations as quickly as possible once a settlement with its pilots is reached. But it could take seven to 10 days to restore the system to full capacity in the wake of a complete shutdown. The airline says it will expand its existing goodwill policy around changes and cancellations beyond Sept. 23 if necessary.

Am I owed compensation if my flight is cancelled?

Passengers will receive refunds for cancelled flights, but customers won't be entitled to any additional compensation. Under Canada's existing Airline Passenger Protection Regulations, labour disruptions are considered out of an airline's control and not eligible for compensation requests.

I'm planning to ship goods by air. Will that also be affected?

Cargo operations would also be affected by a shutdown at Air Canada. The airline has already begun limiting acceptance of some goods due to average shipment timelines and the potential risk of disruption.

This report by The Canadian Press was first published Sept. 9, 2024.

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