August 13, 2025
The Right Honourable Mark Carney
Prime Minister of Canada
80 Wellington Street Ottawa, ON K1A 0A2
Re: Request for Government Intervention to Prevent Airline Disruption
Dear Prime Minister,
I am writing on behalf of the 91 Chambers of Commerce and Boards of Trade across Atlantic Canada to express our concern regarding the ongoing labour negotiations between Air Canada and the Canadian Union of Public Employees (CUPE), which represents approximately 10,000 flight attendants. The Atlantic Chamber of Commerce recognizes the close ties between our region's prosperity and dependable air transportation and that the current situation could result in disruptions that affect both short-term operations and the broader confidence in our economic recovery and development.
With CUPE issuing a 72-hour strike notice today, the potential for a work stoppage as early as August 16, 2025, raises important considerations for the economic vitality and connectivity of Atlantic Canada. In mid-August alone, Air Canada (including Mainline and Rouge) operates more than 40 flights daily, offering over 14,000 seats per day in and out of the region—accounting for a substantial 75% of the total daily seats available (with the remaining 25% handled by Air Canada Express partners like Jazz or PAL). Holding nearly 45% of the market share in Atlantic Canada, Air Canada's services play a key role in supporting business travel, tourism, and general mobility in this geographically isolated area, where alternatives are often constrained. A strike could interrupt these services, leaving travelers without options, delaying shipments, and affecting supply chains that businesses rely on to maintain their operations.
The economic effects of such a disruption would be significant. On average, Air Canada's operations contribute $3.9 million to the region's GDP each day and generate $8.1 million in economic output across the four provinces daily. These contributions highlight the airline's important position in our local economies, where even brief interruptions could result in lost revenue, uncertainties for jobs, and reduced investor interest. Tourism, which forms a significant part of our regional economy and supports seasonal employment, would be notably impacted, as visitors depend on these flights to access our coastal areas, cultural events, and hospitality experiences. In addition to tourism, businesses in resource extraction, manufacturing, and professional services could encounter logistical difficulties, including postponed meetings,
interrupted exports, and higher costs that might slow the progress we've achieved in recovering from the pandemic. For many small and medium-sized enterprises—the foundation of our communities—these issues could add to ongoing pressures such as supply chain constraints and
increasing operational costs, making it harder to sustain growth.
We acknowledge the value of fair negotiations and the rights of workers and believe that the best deals arise from good faith bargaining at the table, enabling both parties to develop agreements that serve mutual interests without unnecessary external involvement or extended disputes. However, If the situation progresses further, the Government of Canada must be prepared to act with options to limit disruptions, such as binding arbitration.
Sincerely,
Rhonda Tulk-Lane
CEO, Atlantic Chamber of Commerce
Cc:
The Honourable Chrystia Freeland
The Honourable Patty Hajdu