Air Canada is preparing for a potential shutdown of most operations next week as it says contract talks with its pilots union remain far apart.

The airline said Monday that talks are nearing an impasse over the Air Line Pilots Association鈥檚 鈥渆xcessive鈥� wage demands.

鈥淎ir Canada 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,鈥� said chief executive Michael Rousseau in a statement.

The ALPA, which represents more than 5,200 pilots at Air Canada, did not immediately respond to a request for comment.

Rousseau said it鈥檚 increasingly likely that there will be a work stoppage, and the airline will have to begin an orderly shutdown of Air Canada and Air Canada Rouge once a 72-hour strike or lock out notice is given. The airline says its finalizing its contingency plan to suspend flights gradually over three days if needed.

Unless an agreement is reached, either side could issue a notice as early as Sept. 15.

The airline is allowing customers with bookings between Sept. 15 and 23 to make changes if they want to at no cost, or to receive a credit for future travel. It says the policy will be expanded as warranted.

Air Canada says a tentative agreement has been reached on a large number of items during the contract talks, but wages remain a key sticking point.

Air Canada and Air Canada Rouge operate close to 670 daily flights on average and carry more than 110,000 passengers.

If flights are suspended, Air Canada says it will take up to seven to 10 days to resume normal operations after a complete shutdown. Air Canada Express flights will continue to operate during a strike, the airline said.

Air Canada pilots in August voted 98 per cent in favour of a strike mandate, which the union said showed pilots were willing to go the distance to secure their desired contract.

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The Canadian Press