Groups representing at least 200,000 businesses in Canada called on the government of Justin Trudeau to prevent a potential strike by national carrier Air Canada, arguing that it may damage the economy.

The Canadian Chamber of Commerce, the Business Council of Canada and nearly 100 other associations in a letter to the federal labor minister asked him to order arbitration to settle the labor dispute.

This comes after Air Canada said it was preparing to suspend most of its flights starting next Sunday as it faces an impasse in talks with its pilots over wage demands.

A total shutdown of its operations has been scheduled for Sept. 18 if talks break down.

"No one wins in a strike, but a labor disruption would cause a lot of harm to a lot of people," Goldy Hyder of the Business Council of Canada told a news conference in Ottawa.

"Canadians cannot afford another disruption to our economy," he said.

Trudeau called the carrier and the Air Line Pilots Association union, representing more than 5,200 pilots, have said they remain far apart on a deal after 15 months of ongoing negotiations.

Labor Minister Steve MacKinnon said Wednesday significant issues remained unresolved, but he was optimistic a strike could be averted.

He urged both sides to "knuckle down and get a deal."

The airline's pilots are pushing to close a pay gap with their American counterparts, but Air Canada says their demands "far exceed average Canadian wage increases."

Candice Laing, of the Canadian Chamber of Commerce, said a disruption at Air Canada would not only disrupt passenger travel, but also air transport of food, manufactured goods and other materials.

"It's about businesses of all sectors of the economy and communities of all sizes... trying to stay connected across our incredible land mass and geography," she said. "This is a national issue."

Air Canada flies to 47 countries and carries an average of 110,000 passengers a day on its 670 flights.