Air Canada cancels Boeing orders after pilots vote
6/20/2005
Air Canada said Saturday that it has been informed by the Air Canada Pilots Association (ACPA) that the tentative agreement on costs and other issues relating to the Boeing order has been rejected by the union membership. ACPA leadership had recommended ratification of the tentative agreement which had been negotiated with the assistance of Mediator Mr. M.G. Mitchnik. The Company accepts the pilots' decision and has notified Boeing of the order cancellation.
The agreement with Boeing announced April 25 was subject to the successful completion of certain conditions including the negotiation of satisfactory terms by the airline with its pilots. The order is subject to cancellation without penalty.
"We are naturally disappointed at having to cancel the wide body aircraft order but these aircraft can only be brought into our fleet on a pre- determined economic basis. Despite best efforts on the part of ACPA, the agreement has been rejected," said Montie Brewer, President and CEO of Air Canada. "Following a successful restructuring, Air Canada has been transformed into a viable carrier. We cannot lose sight of the effort it took to get to where the airline is today and while the cancellation of this aircraft order will be disappointing to our employee group at large, including many of our pilots, it is the right decision given the circumstances.
The agreement with Boeing included firm orders for 18 Boeing 777s, plus purchase rights for 18 more, in a mix of the 777 family's newest models: the 777-300ER, the 777-200LR Worldliner , and the newly announced 777 Freighter. Air Canada's 777 deliveries were scheduled to begin next year with the arrival of three 777-300ERs in 2006. The renewal plan also included firm orders for 14 Boeing 787 Dreamliners, scheduled for delivery in 2010.
Good for these guys. They were not willing to take it in the shorts to get a few airplanes.
6/20/2005
The agreement with Boeing announced April 25 was subject to the successful completion of certain conditions including the negotiation of satisfactory terms by the airline with its pilots. The order is subject to cancellation without penalty.
"We are naturally disappointed at having to cancel the wide body aircraft order but these aircraft can only be brought into our fleet on a pre- determined economic basis. Despite best efforts on the part of ACPA, the agreement has been rejected," said Montie Brewer, President and CEO of Air Canada. "Following a successful restructuring, Air Canada has been transformed into a viable carrier. We cannot lose sight of the effort it took to get to where the airline is today and while the cancellation of this aircraft order will be disappointing to our employee group at large, including many of our pilots, it is the right decision given the circumstances.
The agreement with Boeing included firm orders for 18 Boeing 777s, plus purchase rights for 18 more, in a mix of the 777 family's newest models: the 777-300ER, the 777-200LR Worldliner , and the newly announced 777 Freighter. Air Canada's 777 deliveries were scheduled to begin next year with the arrival of three 777-300ERs in 2006. The renewal plan also included firm orders for 14 Boeing 787 Dreamliners, scheduled for delivery in 2010.
Good for these guys. They were not willing to take it in the shorts to get a few airplanes.
