Air Canada cancels $6 billion deal with Boeing
Air Canada, which emerged from
bankruptcy last fall, has canceled an airplane order worth at least $6 billion from Chicago-based Boeing Co. after pilots rejected the deal for more
modern and fuel-efficient planes.
Pilots voted Saturday to reject the aircraft order made April 25, although the Air Canada Pilots Association recommended the purchase be ratified.
The airline said it accepted the pilots' decision and notified Boeing the order was canceled.
"Following a successful restructuring, Air Canada has been transformed into a viable carrier," said Montie Brewer, President and CEO of Air Canada.
"We cannot lose sight of the effort it took to get to where the airline is today. 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."
Brewer said the company will look to the used market to find alternative aircraft.
Had the Boeing purchase been approved, Air Canada would have received 18 new Boeing 777s next year and 14 Boeing 787 Dreamliners - its newest jet -
which are scheduled for delivery in 2010. The airline also would have had purchase rights to 18 more 777s and 46 more 787s to replace Air Canada's
Boeing 767 fleet.
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