Despite the fact both Air Canada and its pilots' union are in a legal position to grind the airline to an abrupt halt, the federal labour minister is confident the two sides will come to terms instead.

The union representing Air Canada's 3,000 pilots has been handed an overwhelming strike mandate, after its members voted 97 per cent in favour of job action Tuesday night.

"Pilots were forced to take this vote as a defensive measure because the corporation chose to put itself in a legal lock out position," the president of the Air Canada Pilots Association Captain Paul Strachan said in an email.

Air Canada was already in a position to lock out the pilots, meaning both sides are now in a position to essentially shutter the airline's operations with just 72 hours notice.

Nevertheless, Air Canada COO Duncan Dee has assured propsective customers they have no reason to fear their plans will be dashed at the last minute by a work stoppage.

"It is business as usual, and customers can continue to make their travel plans and book with confidence," Duncan said in a statement.

Echoing the airline's call to customers, Strachan said pilots are more interested in striking a deal than going on strike.

"Air Canada pilots have demonstrated their commitment to reaching a negotiated settlement by continuing to fly under a contract that expired in March 2011," he said.

While federal Labour Minister Lisa Raitt recognizes the two sides "are really far apart," she is counting on their assurances they will remain at the bargaining table.

"I'm definitely relying upon the good faith of both parties when they tell me that they want to do a deal," Raitt told CTV's Don Martin Tuesday night, explaining that she expects the appointment of retired judge Louise Otis to mediate the talks will help.

"We're providing the space and the expertise to get it done and we expect that the pilots and Air Canada will not have a work stoppage," Raitt said.

Given that Air Canada has reached deals with its machinists, crew schedulers and flight dispatchers in recent days, Raitt says the airline has proven it's possible.

"They're on a roll," she said.

But negotiations between the airline and its pilots' union have been ongoing for 17 months already, including a proposed contract that was rejected in a two-thirds vote last May.

The negotiations have also seen their share of Ottawa's involvement, including a two-month round of conciliation and mediation led by another federal appointee.

Among the sticking points is Air Canada's rumoured plan to launch a low-cost airline to compete with its discount and charter rivals. Pilots fear the move would not only lower their wages, but could also lead to the outsourcing of work to foreign or even other domestic carriers.

On the back of rising fuel costs and increased domestic competition, Air Canada's latest financial report detailed a $249 million loss in 2011, including $60 million in the fourth quarter.