Sept 9 (Reuters) - Air Canada ( ACDVF ) is finalizing

contingency plans to suspend most of its operations as talks

with the pilot union are near an impasse, the airline said on

Monday.

Talks between Air Canada ( ACDVF ) and the Air Line Pilots Association

(ALPA), which represents more than 5,200 pilots at Canada's

largest carrier, are continuing, but both parties remain far

apart, the company said.

Air Canada's ( ACDVF ) pilots have been advocating for unprecedented

wage increases to close the salary disparity with their

higher-earning U.S. peers, who achieved record contracts in 2023

amid pilot shortages and robust travel demand.

The union and the airline had entered into a three-week

cooling off period, which is mandated by Canadian law, on Aug.

27.

The airline and its unit Air Canada Rouge are preparing to

gradually suspend flights over three days, potentially starting

as early as Sept. 15.

Unless an agreement is reached, beginning Sunday, the

carrier or the union are likely to issue a 72-hour strike notice

or a lock-out notice that triggers the three-day wind down plan.

"Air Canada ( ACDVF ) believes there is still time to reach an

agreement with our pilot group, provided ALPA moderates its wage

demands which far exceed average Canadian wage increases," CEO

Michael Rousseau said on Monday.

ALPA did not immediately respond to a Reuters request

for comment.