With contract talks between Air Canada and its 3,000 pilots scheduled to continue this week, the airline says it is confident it can avoid a lockout despite a midnight deadline.

Air Canada spokesman Peter Fitzpatrick tells CTV News that his airline is confident a disruption can be avoided and that customers can continue to make travel plans with confidence.

Air Canada has been in negotiations with the pilots' union, the Air Canada Pilots Association (ACPA), since October 2010. The two sides reached a tentative agreement in May 2011, but that was ultimately rejected by the pilots.

The pilots said they had not received enough assurances about a two-tier pension system and the possible creation of a low-cost airline.

Since early November 2011, the two sides have been in discussions assisted by a federally-appointed conciliator.

The union and the airline entered a 21-day cooling off period in late January. That ends at 12:01 a.m. Tuesday, at which point Air Canada would be in a legal position to file 72-hours notice of a lockout. The pilots could strike after giving the same notice.

A labour disruption could come as early as Friday morning, but Air Canada says talks will continue beyond the deadline.

Air Canada has been able to reach tentative deals with three of its other unions in the past three days:

  • the International Association of Machinists and Aerospace Workers, which represents baggage and cargo handlers, mechanics and cleaners
  • the Canadian Airline Dispatcher Association
  • the CAW, which represents in-flight crew schedulers.

All three deals must still be ratified.