Air Canada cancels big Boeing deal

MONTREAL, June 20 (UPI) -- Air Canada has canceled a $6 billion order for 32 Boeing Co. planes following the rejection a cost-cutting deal by airline's pilots union.

The carrier had ordered 18 Boeing 777s and 14 of the company's light-weight, fuel-efficient 787s, MarketWatch reported Monday.

At list prices, the orders were worth about $6 billion.

Air Canada, which emerged from bankruptcy last fall, announced the Boeing order in April, and earlier this month leaders of the Air Canada Pilots Association endorsed the purchases.

But rank-and-file pilots refused to accept a cost-cutting deal that turned on flying the fuel-efficient Boeing jets.

Air Canada faces no penalty for canceling its order.