Air Canada Pilots Vote Against Boeing Planes Order

[Sierra Mike]

NEW YORK -(Dow Jones)- Air Canada (ACNA.YY) said Saturday that its union had voted to reject a tentative Boeing Co. (BA) (BA) aircraft order made in April, the Canadian Press news agency reports.

While the Air Canada Pilots Association had recommended ratification of the tentative agreement, its pilots voted against the order, the CP said.

Had the deal been passed by the company's union members, Air Canada would've received 18 new Boeing (BA) 777s next year, plus purchase rights for 18 more, according to the CP report.

The April 25 order also would have seen new Boeing (BA) 787 aircraft scheduled for delivery in 2010 to replace Air Canada's Boeing (BA) 767 fleet.

I'm not entirely sure what the reasoning is behind this move. It could be borne from fealty to Airbus, which AirCanada has used pretty much exclusively over the past decade or so, or it could be economically-related--the pilots might not want the organization making such a major cash outlay. Whatever the reason, it's a multi-billion dollar hit Boeing probably wasn't prepared to absorb. Read all about it here (http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&news_id=dji-00000420050619&feed=dji&date=20050619&cat=INDUSTRY).

SM

[Cousin Dave]

More anti U.S. sentiments from our northern neighbors.

[ethics]

787 does look amazing.

Here's some basic benefits.

[Advocat]

More anti U.S. sentiments from our northern neighbors.

Not in the least... this is the result of a long-standing disagreement between some Air Canada pilots and management:
http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050624/RPILOTS24/TPBusiness/Canadian

Feuding factions within the Air Canada Pilots Association are clashing over seniority rankings as they mount rival campaigns to entice management to agree to union conditions for reviving cancelled orders for new jets. In airline union infighting, seniority is crucial because it determines which pilot wins better-paid assignments on larger planes, and sets priorities for vacation time.

On one side are pilots who formerly worked for Canadian Airlines International Ltd. (CAI) and on the other are employees who call themselves Original Air Canada (OAC) pilots since they were hired by the Montreal-based carrier. While both sides in the union say they want Air Canada to renew talks with Boeing Inc., they are basing such support on competing agendas: The ex-CAI camp backs the status quo on seniority while the OAC side is seeking wholesale changes in the rankings.

Captain Rob McInnis, of the ex-CAI camp, said yesterday it's unfortunate that Air Canada had to cancel its Boeing order after 54 per cent of unionized pilots who cast ballots last week on a tentative labour pact voted to reject the offer.

"The vote, in our opinion, was hijacked by a vocal minority of Original Air Canada pilots who were not satisfied with the pilot seniority list," he said yesterday. "The hijackers' behaviour reflects badly on the maturity and professional image of all Air Canada pilots."

One-third of the 3,000 pilots eligible to vote did not cast ballots on a proposed contract for flying the new Boeings. Air Canada made its plane purchase contingent on the pilots' approval of the offer.

Apparently, when the two airlines merged into Air Canada, some pilots who were making $200+ per hour previous to merger found their seniorty status altered or superceded, resulting in reductions in pay to as little as $75 per hour.

Want to guess which group of pilots showed up and voted in a block? :doh:

[Sierra Mike]

So what? When airlines merge in the US, or one buys out another, the weaker/smaller carrier's pilots get time reductions. Picture when TWA was absorbed by American, and all those fat-cat B747 senior captains who made $200,000 a year flying for TWA had to go through retraining on B767s and B777s, which is all American had at the time for transcontinental flights. They had to fly right seat, so they were making a lot less than what they were used to...but if they wanted a job, they had to do it.

I don't think that this is an example of anti-American attitudes, either.

SM

[Sierra Mike]

787 does look amazing.

Here's some basic benefits.
It looks like a sweet ride, and I'm SO happy I bought a lot of Boeing stock before they announced this aircraft. It's been selling really well, too. I think Boeing might have been right in not going after the A380 directly, and going for the domestic demand in Asia.

SM

[cmhbob]

My question is how did the pilots get approval authority over aircraft purchases? I would think that would be a major problem for management. Are there other airlines like that?

[Advocat]

My question is how did the pilots get approval authority over aircraft purchases? I would think that would be a major problem for management. Are there other airlines like that?

It appears it was a carrot/stick dangled as part of negotiations; the orders wouldn't go through unless the contract was agreed to. Unfortunately, a segment of the pilot's organization used this as a hammer in order to try and get the company to change the order of things and their senority (read pay) reinstated.