NACC Deeply Concerned Over Impact of Rail Work Stoppage on Airline Operations and Supply Chains
Ottawa ON, August 20, 2024 – The National Airlines Council of Canada (NACC) today expressed its significant concern with the potential work stoppage at Canada’s Class 1 railroads, especially given the impact it would have on Canada’s airline operations and supply chains.
The Canada Industrial Relations Board (CIRB) has recognized that a strike at Canada’s two largest railroads will result in economic hardship and the possibility of harm to Canada’s global reputation as a reliable trading partner. Canada’s airlines and the travelling public will not be immune from these negative impacts. Rail is a critical mode of transport in the aviation supply chain. For instance, 40 to 50% of aviation fuel used at Toronto Pearson airport is shipped via rail. Any interruption of service would not only result in disruptions to the aviation supply chain, but would result in increased costs as a result of pursuing alternative methods of transport.
As the parties continue to negotiate, NACC asks that the Government of Canada be prepared to act quickly to avoid disruption and protect Canadians, the Canadian economy, and Canada’s aviation sector, should negotiations fail.
“Canada’s air travel system relies on an efficient, functional rail system in order to transport goods essential to the operation of Canada’s airlines and airports”, stated Jeff Morrison, President and CEO of NACC. “It is critical that the parties arrive at a settlement, but if not, the federal government must be prepared to step in using every tool available in order to prevent massive disruption to Canada’s supply chain, economy and reputation, including the significant disruptions and cost impacts it would have on Canada’s aviation sector” he added.
About the National Airlines Council of Canada:
The National Airlines Council of Canada represents Canada’s largest national and international passenger air carriers: Air Canada, Air Transat, Jazz Aviation LP and WestJet. It promotes safe, sustainable, accessible and competitive air travel by advocating for the development of policies, regulations and legislation to foster a world-class transportation system.
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