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

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.

Negotiations between Air Canada and the union representing 10,000 flight attendants have stalled hours before the strike notice deadline. The union says it has declined the airline's proposal to resolve negotiations using an arbitrator,