ACE Aviation Holdings, parent of Air Canada, has reopened talks with Boeing for the airline to take delivery of a new fleet of 777s in early 2007, after a dispute over pay rates was resolved by binding arbitration.

The Canadian airline could also change its widebody plans by adding leased 777s to its fleet next year instead of the planned Boeing 767s detailed in a fleet-upgrade programme from April. ACE earlier this year held a tentative agreement to order 18 777s and 14 787s, with options on 64 more widebodies. However, that deal collapsed after the carrier’s pilots union rejected a new pay scale as part of an ongoing dispute over seniority.

The Boeing deal now appears to be revived, with ACE chief executive Robert Milton saying that he spoke last week with Boeing Commercial Airplanes chief executive Alan Mulally.

Source: Flight International