Air Transat: Labor conflict and management conflict

We told you about the Air Transat labor conflict, but the timeline has ended up being moved up significantly, and the strike vote ends today (it’ll likely be “yes”, but that does not necessarily mean there will be a strike). Meanwhile, their 2^nd-largest shareholder, Pierre Karl Péladeau (a Québec billionaire and former PQ leader), is very unhappy with the airline’s performance and is trying to restructure its governance.

Speaking of which, we told you that Air Transat lost $114 million in 2024, for a 6^th consecutive year of net losses.

So this is relevant because the financial context is quite different from that of the Air Canada flight attendant strike this summer. But it’s far from certain that the pilots’ union sees it that way…

Here’s an update regarding the 2 conflicts at Air Transat: the potential strike and the governance battle.

Labor conflict at Air Transat

Flytrippers will publish the ultimate guide on the potential strike with all the details on your rights tomorrow, when the strike vote will officially be positive (we can stop pretending we don’t know the result).

But we wanted to give you an update right away, given that they’ve moved very quickly to the next steps.

This is so you can get ahead and be one of the savvy travelers who act quickly (today!) based on the instructions below if your trip absolutely cannot be delayed.

Here’s the updated timeline for what’s next:

• December 2: The strike vote ends
• December 3: The union inaugurates a strike center in Montreal and announces the vote results
• December 7: The union and the airline can issue a 72-hour notice for a strike or a lockout
• ~December  7: The airline could preemptively cancel certain flights if notice is given
• December 10: The strike and lockout can legally begin, and all flights would be canceled
• ~December 12: The approximate date when the government would likely intervene based on this summer
• ~December 20: The approximate date the majority of disruptions would likely be over based on this summer

Of course, both sides could reach a deal before the 10^th. But that’s far from certain.

Here’s a quote from the most recent press release from the union of Air Transat pilots at the beginning of the strike vote in November:

Still, the 2 sides remain far apart on most key issues, with management bargaining slowly, as the deadline for a possible strike draws near.

“We showed today that we are fully prepared to walk out if that’s what it takes to improve our outdated, decade-old contract.” (chair of the Air Transat ALPA Master Executive Council) Bradley Small said. “We demand a modern contract, and we hope that management recognizes our resolve and comes back to the table ready to bargain in earnest.”

The talks continue and the Air Transat leadership obviously wants to avoid a disruption to operations.

I’m sharing a sneak peek of your 5 options if you have a flight between December ~7 and 20.

As mentioned, we’ll provide a lot more information tomorrow; join 100,000 savvy travelers who receive our free newsletter to get it directly in your inbox.

Here are your options regarding the potential Air Transat strike:

• You can cancel your trip right away based on the normal rules of your fare class
  • Not recommended at all if you have to pay change fees
  • This is just for those who deal very poorly with uncertainty
• You can do nothing and hope the strike doesn’t happen
  • Your flight might take place without changes
  • You can wait to know more closer to your flight date
• You can wait to be rebooked for free on another airline if there is a strike and your flight is canceled
  • This can take a few days, though
  • You’ll get 500 CAD or 1000 CAD in hotels and meals with zero effort
  • If you paid for your flight with a good credit card (as always)
  • Thanks to flight delay insurance
  • The airline must also provide you with food and lodging (except for domestic flights)
  • You’ll be entitled to 975 CAD (600 EUR) per person if your flight departs from Europe
  • You get additional rights if the flight is canceled before the strike
  • You get additional rights if the flight is canceled due to a lockout
  • Don’t miss all the details in the guide tomorrow
• You can book a fully refundable backup flight if you cannot be delayed
  • Choose a fully refundable fare if you’re comfortable with the price to be sure to have a flight
  • If you need it, you’ll already have a seat guaranteed and be ahead of everyone
  • If you don’t need it, you simply get a refund obviously
• You can book another flight at the normal cheaper price (non-refundable) if you cannot be delayed
  • You can hope your initial flight gets canceled so that one gets refunded
  • Or you can hope Air Transat at least offers to waive change fees

Management conflict at Air Transat

This is certainly not as relevant for travelers, but it is if you’re like me and you’re passionate about the aviation industry (and a former management consultant, too).

Pierre Karl Péladeau (PKP) is dissatisfied with the company’s financial performance.

Here are the details:

• PKP is Air Transat’s 2^nd-largest shareholder
  • With 9.5% of shares
  • Via his company Financière Outremont inc.
  • He also tried to buy the airline several times
• He filed an official request
  • To call an extraordinary shareholders’ meeting
  • Before February 6, 2026
• The Board of Directors is currently reviewing the request
  • And will respond later
• PKP says that “Transat has shown operational and financial performance consistently below expectations”
  • He says he has pointed out “serious shortcomings”
  • And wants to propose “crucial measures to rectify the situation”
  • And “restructure the deficient balance sheet” and conduct a “comprehensive strategic review”
• PKP is also proposing major changes to the Board of Directors
  • Reducing it from 11 to 6 seats
  • Getting a seat for himself
  • Also getting 2 more for his own collaborators

We know Air Canada had announced it would acquire Air Transat, but the deal fell apart because of the pandemic the government’s response to the pandemic. Sunwing was also recently bought by WestJet.

We’ll see if Air Transat can eventually return to profitable operations while remaining independent, after more than half a decade of net losses. The partnership with Porter, an airline that is growing rapidly, will definitely help.

And the rumors of launching a credit card, too. It would be about time: credit cards are literally the most profitable business line for other North American airlines. To be continued!

Learning how to travel for less

Join over 100,000 savvy Canadian travelers who already receive Flytrippers’ free newsletter so we can help you travel for less (and keep you updated on all things travel)! 

Summary

This update on the Air Transat labor conflict and management conflict is just to keep you in the loop so you can book a backup flight quickly. We will have many more details on the potential strike when the strike vote becomes official tomorrow.

What would you like to know about the Air Transat conflict update? Tell us in the comments below.

See the flight deals we spot: Cheap flights

Discover free travel with rewards: Travel rewards

Explore awesome destinations: Travel inspiration

Learn pro tricks: Travel tips

Featured image: Air Transat plane (photo credit: Jason Rosewell)