In a public announcement this morning, Boeing announced Air Canada has signed an order to purchase 61 737 MAX aircraft, and choosing Boeing as its partner to overhaul its single-aisle fleet of aircraft. As of currently published prices, the deal is worth $6.5 billion; it will be fulfilled with 33 737 MAX 8 aircraft and 28 737 MAx 9’s. The agreement also includes 18 options and 30 rights to purchase additional MAX aircraft from Boeing.
“Our narrowbody fleet renewal program with the 737 MAX is expected to yield significant cost savings and is a key element of our ongoing cost transformation program,” said Calin Rovinescu, President and CEO of Air Canada in a statement this morning. “Projected fuel and maintenance cost improvements of more than 20 percent per seat will generate an estimated CASM reduction of approximately 10 percent compared to our existing narrowbody fleet. In addition, the 737 MAX offers improvements to the environment, making this the best choice for Air Canada.”
Compared to current 737 models, the 737 MAX is 14% more fuel efficient and reduces carbon emissions by a similar margin; the operational footprint is further reduced by 40%.
“We’re honored Air Canada selected Boeing for their single-aisle fleet renewal,” said Brad McMullen, vice president of North America Sales, Boeing Commercial Airplanes. “The 737 MAX will deliver big fuel savings to the airline while providing Air Canada’s customers with best in class passenger amenities.”
As of this writing, Boeing reports more than 1,900 737 MAX orders to date from 37 customers internationally. Boeing also says production is on schedule for a first flight in 2016 with deliveries beginning in the latter part of 2017.
