Air Canada says cancelled airplane deal no setback to expansion plans
Air Canada cancelled a $6 billion Boeing 777-787 order it placed in April.
The order was cancelled after pilots rejected a new agreement last weekend. The order was contingent on several stipulations, including a new contract with the pilots.
The massive order included eighteen 777s, plus purchase rights for eighteen more of a mix of 777’s and others. Deliveries were to have started next year.
The airline had counted on the deal to open new routes and cut flying costs. But CEO Montie Brewer said the transaction was “not material” to the company’s growth strategy.
“We will adjust our plans and it is anticipated that the company will continue to grow on an unaltered basis,” he said.
He said the airline would find alternative aircraft, probably in the used market.
“This does not change our plans, our vision or our potential; we will just have to do it differently,” he said.
One option for Air Canada to continue expansion plans would be to order more Airbus A 340s from European aircraft maker Airbus.
The airlines, 3,100 pilots rejected the deal in part because of growing dissatisfaction from members over seniority conditions, according to media accounts.
The airline said the new Boeing planes would have saved up to 30% on operating costs.
Air Canada is raising fares to offset spiraling fuel prices.
Base fares for flights within Canada are being raised each way by $8 Canadian on short-haul flights and $10 on long-haul flights. The increases just went into effect.
Report by David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt