Pact with pilots may save Air Canada order

Published 9:00 pm Wednesday, June 8, 2005

Hey, we’ve got breaking news here at the Herald aeroblog. I was JUST posting some links about how Air Canada’s order for 32 777s and 787s could be in jeopardy, because of a contract conflict with the airline’s pilots, when this story from Reuters popped up, announcing the conflict has been resolved this morning.

http://www.metronews.ca/reuters_business.asp?id=77548

So what’s the context? Yesterday, the CEO of Air Canada’s holding company told analysts he was ready to cancel the deal if he couldn’t get an agreement with the pilots who will fly the new planes.

Key Quote, from an earlier story from Reuters Canada: “If no agreement is reached by June 10, Air Canada can cancel the orders without penalty, Robert Milton, chairman, president and chief executive of ACE Aviation Holdings Inc.,, Air Canada’s parent, told analysts.”

http://www.reuters.ca/locales/c_newsArticle.jsp?type=businessNews&localeKey=en_CA&storyID=8735029

And here’s a link to The Globe and Mail in Toronto, which suggests that the order was not in doubt, but rather that Milton was playing hardball with his pilots’ union. It’s a broader story about Air Canada and its investors:

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050609/RACE09/TPBusiness/TopStories