Today, Air Canada, in a surprising move, has decided to replace their current Airbus narrowbody fleet with the offering from the competition – the Boeing 737 MAX.
They have ordered a total of 61 of the aircraft, with 33 going to the MAX 8 and 23 to the larger MAX 9. The “up to 109” part of the transaction comes from 30 purchase rights and 18 options. At list prices, the firm orders would be a transaction of over six billion dollars, but you better believe that the airline made a stellar deal for the planes.
“We are pleased to announce our agreement with Boeing for the purchase of 737 MAX aircraft as part of the ongoing modernization of Air Canada’s fleet,” said Calin Rovinescu, President and CEO of Air Canada. “Renewal of our North American narrowbody fleet with more fuel efficient aircraft is a key element of our ongoing cost transformation program and the enhanced passenger cabin comfort provided by the Boeing MAX will help us to retain Air Canada’s competitive position as the Best Airline in North America. Our narrowbody fleet renewal program 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 per cent will generate an estimated CASM reduction of approximately 10 per cent as compared to our existing narrowbody fleet.”
By 2019, Air Canada plans to have an all Boeing long-haul fleet, and a majority Boeing short-to-medium haul fleet. Currently, the airline operates a fleet of 27 Airbus A319s, 36 A320s and 10 A321s.