Canadian airline Air Transat (TRZ) has narrowly averted a strike by its pilots with a tentative new labour pact reached at the eleventh hour.
The leisure airline, which primarily flies to sun destinations, had canceled most of its flights and was winding down operations ahead of the possible work stoppage on Dec. 10.
While the pilot strike appears to have been avoided, clearing the way for Air Transat to resume normal operations, neither the company nor the union have released details of the agreement.
Air Transat employs about 750 pilots and they were demanding pay parity with other Canadian airlines such as Air Canada (AC) and WestJet.
In a news release, Air Transat said, “Our priority now is to quickly restore our operations and deliver on our commitment to provide service that meets our standards.”
The Air Line Pilots Association was aiming for a new contract that boosts wages, job security and quality of life following big gains at Air Canada and WestJet.
Air Canada’s pilots are receiving a 42% pay increase over four years.
Air Transat’s pilots are expected to vote on the new collective agreement in coming days.
The showdown with the pilots’ union comes as Air Transat tries to turn an annual profit for the first time since 2018.
Cancelled trips in recent days include to sun destinations in Mexico, the Dominican Republic, Peru and Spain, as well as European destinations such as London and Paris.
TRZ stock has declined 57% in the last five years and now trades at $2.52 per share in Toronto.
