Air Canada selects Boeing to revamp single-aisle fleet

TD Guest Writer

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The deal could see Air Canada operate all three versions of the Boeing 737 MAX series
The deal could see Air Canada operate all three versions of the Boeing 737 MAX series

Air Canada has placed a major order with Boeing that will see it revamp its short- and medium-haul fleet.

The national carrier has agreed to purchase 61 Boeing 737 MAX aircraft, with options and purchase rights for a further 48. At least 30 of the aircraft will be the standard B737 MAX 8, which can seat 162 passengers in a two-class configuration, while 28 will be the larger 180-seat

B787 MAX 9. Air Canada has the option however, of changing the order to include the smaller, 126-seat B737 MAX 7.

The first two aircraft are scheduled to be delivered in 2017, with a further 16 arriving in 2018, 18 in 2019, 16 in 2020 and nine in 2021. The B737 MAX jets will replace Air Canada’s existing mainline fleet of Airbus single-aisle aircraft.

“We are pleased to announce our agreement with Boeing for the purchase of 737 MAX aircraft as part of the ongoing modernisation of Air Canada’s fleet,” said Calin Rovinescu, president & CEO of Air Canada.

“Renewal of our North American narrow-body fleet with more fuel-efficient aircraft is a key element of our ongoing cost transformation programme and the enhanced passenger cabin comfort provided by the Boeing MAX will help us to retain Air Canada’s competitive position.

“Our narrow-body fleet renewal programme is expected to yield significant cost savings. We have estimated that the projected fuel burn and maintenance cost savings on a per seat basis of greater than 20%.”

Air Canada currently operates a mainline fleet of 73 Airbus A319, A320 and A321 single-aisle aircraft. It also flies 45 Embraer E190 regional jets, but said it would also “evaluate the potential replacement of its Embraer E190 fleet with more cost-efficient, larger narrow-body aircraft”.

In line with this strategy, the B737 deal gives Boeing the opportunity to purchase up to 20 of Air Canada’s E190 fleet. The E190 aircraft exiting the fleet will be initially replaced with larger narrow-body leased aircraft until the airline takes delivery of the B737 MAXs.

“The company will be reviewing various options over the next six months for the remaining 25 Embraer E190 aircraft including continuing to operate them or replacing them with a yet to be determined number of aircraft in the 100 to 150 seat range,” Air Canada said in a statement.

Overall, Air Canada plans to expand its fleet from 192 aircraft to approximately 214 by the end of 2019.

The airline also currently has outstanding orders for 37 B787 Dreamliners and two B777-300ERs.

Klook.com

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