Air Canada's Boeing order to be revived?
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Air Canada's Boeing order to be revived?
This just in from Aviation Week's Aviation Daily of Sept 26.
Rockhound
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Air Canada, Pilots Reach Deal Expected To Revive Boeing Order
09/26/2005 07:57:36 AM
By Steven Lott
Air Canada hopes to salvage its canceled order for as many as 100 Boeing 777s and 787s after the carrier reached a deal Friday with its pilots' union to resolve a dispute over pay for operating the new long-haul aircraft.
The airline in June placed the large order which was going to provide the foundation for the airline's growth plans. Shortly after the order announcement, however, the Air Canada Pilots Association rejected a tentative contract that would have allowed the airline to start flying the new planes, and management canceled the order (DAILY, June 21). The deal was rejected partly because of bitter feelings toward management over pay cuts in 2003 and the merger with Canadian Airlines in 2000. An unofficial, grassroots pilot group lobbied against the agreement.
More recently, the dispute was reviewed by the government's labor board and management was optimistic it could renew the Boeing order (DAILY, Aug. 8). Boeing, however, already moved the first two 777 deliveries for Air Canada to a European carrier. On Friday, Air Canada and the union reached a "protocol agreement detailing terms of a binding arbitration process." Through arbitration, "the airline will obtain certainty on pilot costs and other issues relating to the new aircraft."
Subject to a "satisfactory outcome," Air Canada would "re-engage Boeing to conclude an agreement on the acquisition of 777 and 787 aircraft." Separately, a mediation process will be used to review the current pilot dispute resulting from the merger of Air Canada and Canadian Airlines.
Aviation Week, a division of The McGraw-Hill Companies.
Rockhound
==============================================
Air Canada, Pilots Reach Deal Expected To Revive Boeing Order
09/26/2005 07:57:36 AM
By Steven Lott
Air Canada hopes to salvage its canceled order for as many as 100 Boeing 777s and 787s after the carrier reached a deal Friday with its pilots' union to resolve a dispute over pay for operating the new long-haul aircraft.
The airline in June placed the large order which was going to provide the foundation for the airline's growth plans. Shortly after the order announcement, however, the Air Canada Pilots Association rejected a tentative contract that would have allowed the airline to start flying the new planes, and management canceled the order (DAILY, June 21). The deal was rejected partly because of bitter feelings toward management over pay cuts in 2003 and the merger with Canadian Airlines in 2000. An unofficial, grassroots pilot group lobbied against the agreement.
More recently, the dispute was reviewed by the government's labor board and management was optimistic it could renew the Boeing order (DAILY, Aug. 8). Boeing, however, already moved the first two 777 deliveries for Air Canada to a European carrier. On Friday, Air Canada and the union reached a "protocol agreement detailing terms of a binding arbitration process." Through arbitration, "the airline will obtain certainty on pilot costs and other issues relating to the new aircraft."
Subject to a "satisfactory outcome," Air Canada would "re-engage Boeing to conclude an agreement on the acquisition of 777 and 787 aircraft." Separately, a mediation process will be used to review the current pilot dispute resulting from the merger of Air Canada and Canadian Airlines.
Aviation Week, a division of The McGraw-Hill Companies.
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Air Canada and the union reached a "protocol agreement detailing terms of a binding arbitration process."
Or in other words, the two sides have agreed how the talks will be conducted, not what the outcome will be.
Tiny bit of an advance, but the game is not over by a long way.
Or in other words, the two sides have agreed how the talks will be conducted, not what the outcome will be.
Tiny bit of an advance, but the game is not over by a long way.
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Don't think so; Delta never ordered (or placed options/MoUs) on 787s. I'm sure they'd like to at some stage.
NWA did, however, but I haven't heard anything about the effect of Ch11 on its options.
Boeing is currently looking at ramping up 787 production due to the high demand; between this revived AC order (when it happens), QF's expected order and various others, there's quite a few in the pipeline.
One of Boeing's fears was that this order could be lost to Boeing and gained by the A350 (which has - how shall I put this kindly - less pressure on production slots) if Boeing can't produce aircraft when AC needs them.
NWA did, however, but I haven't heard anything about the effect of Ch11 on its options.
Boeing is currently looking at ramping up 787 production due to the high demand; between this revived AC order (when it happens), QF's expected order and various others, there's quite a few in the pipeline.
One of Boeing's fears was that this order could be lost to Boeing and gained by the A350 (which has - how shall I put this kindly - less pressure on production slots) if Boeing can't produce aircraft when AC needs them.
