The Montreal-based airline, which transports about 130,000 customers a day, said the union representing flight attendants made a recent counteroffer seeking “exorbitant” pay increases, and has rejected an offer to enter third-party binding arbitration.

Air Canada said on Tuesday it has asked the federal government for a referral to binding arbitration on its contract talks with the flight attendants union, after the airline declared an impasse in the negotiations.

Air Canada flight attendants' union would need to notify their intention by end of the day Tuesday if they intend to walk off the job on Saturday.