Air Canada pilots have voted down a proposal that would have seen the carrier launch a discount airline with lower paid staff to compete with discount brands like Sunwing.
"The pilots have spoken," said Captain Paul Strachan, president of the Air Canada Pilots Association (ACPA). "We must return to the bargaining table to address their concerns."
Ninety-eight per cent of the ACPA’s some 3,000 pilots voted with 67% rejecting the tentative agreement.
Both the negotiating committee for Air Canada's pilots union and the airline’s chief executive Calin Rovinescu made a last-ditch plea to pilots with letters asking them to support the motion last week.
The carrier can’t afford to lose any more market share as the competition lures travellers with cheap fares, they said. Air Canada’s Airbus fleet could be reduced by as many as eight aircraft in the next four years if it doesn’t launch a discount airline.
"We thank all Air Canada pilots for demonstrating such a concerted interest in their contract and deep concern for the future of their airline. We hope to reward their commitment with a tentative agreement that responds to their valid concerns while promoting the long-term health of Air Canada."
The pilots will continue to operate the airline's schedule under their existing contract.