News / Economy

Sources: Air Canada Appears Close to Buying up to 60 Jets

FILE - Passengers walk past Air Canada planes on the runway at Pearson International Airport in Toronto.
FILE - Passengers walk past Air Canada planes on the runway at Pearson International Airport in Toronto.
Reuters
Air Canada appears close to deciding whether to buy up to 60 new narrowbody jets from Airbus or Boeing Co., a decision that could settle which of the giant plane makers wins their annual order race, industry sources said.

The Canadian flag carrier has said it is looking to renew its fleet of single-aisle aircraft, which currently includes more than 50 Airbus A320 and A321 jets, as well as 45 Embraer 190 planes.

Chief Executive Calin Rovinescu had previously said he hopes a decision will be made by the end of the year, noting the decision would involve more than 100 airplanes.

A spokesman for Air Canada said no decision had been made, but two people familiar with the matter said a decision could come as early as next week when the airline's board meets.

The airline spokesman declined to comment on the timing of any board discussions.

“We typically don't talk about board meetings,” said Air Canada spokesman Peter Fitzpatrick, who also declined to comment on the board's agenda. “I can tell you on the record that no decision has been made.”

Industry sources said Air Canada was expected to address its fleet renewal needs in two phases, starting with a decision on whether to stick with Airbus for medium-haul jets, and pick its revamped A320neo version, or switch to the Boeing 737 MAX.

Both plane makers claim their latest medium-haul offerings provide better fuel savings and easier maintenance.

The airline is expected to opt for 30 or more jets immediately by placing firm orders and place options for up to another 30 as insurance against a faster than expected upturn in the economy, the sources said, asking not to be identified.

Such a deal would be worth up to $6 billion if all the options were exercised.

Airbus and Boeing both declined to comment.

The decision is subject to delay or changes in volume but if approved, would mark the climax to a bruising and widely watched campaign between the world's dominant plane makers.

Airbus was ahead of its U.S. rival in the number of orders in the first 11 months of the year, but the race for the 2013 order crown looks finely balanced once recent deals that have yet to make it into the order books are added to the tally.

The sources denied an industry report that Airbus had already been selected for the deal.

Boeing, which dominates Air Canada's fleet of wide-body jets, is trying to overturn Airbus as incumbent operator for medium-haul planes at Air Canada.

A win for Boeing in its home region would mark a rebound in the region after Airbus displaced it at Mexican low-cost airline VivaAerobus in a fierce contest earlier this year.

However, analysts say airlines do not frequently make the switch between different jets because of the costs of re-training and accommodating new spare parts.

Air Canada could place additional orders for the slightly smaller Embraer jets at a later date and is expected to compare the new, domestically produced Bombardier CSeries with the Embraer E2 family.

RBC analyst Walter Spracklin said in a client note on Friday that Air Canada could potentially put in an order for 30 CSeries planes.

Prospective airlines have been holding off making firm order decisions on the CSeries, which started flight tests in September, until Bombardier releases flight data.

“A full performance data set could be two to three months away,” said Spracklin.

You May Like

For Lebanon-based Refugees, Desperation Fuels Perilous Passage

In a war that has caused an estimated three million people to flee Syria, efforts to make perilous sea journey in search of asylum expected to increase More

South African Brewer Tackles Climate Change

Mega-brewer SAB Miller sent delegates to climate summit in Peru, says it is one of many private companies taking their own steps to fight climate change More

Indonesia Reports Increase in Citizens Joining Islamic State

Officials say more than 350 of its citizens are now in Syria or Iraq to fight with Islamic State - 50 more than last month More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8033
JPY
USD
117.19
GBP
USD
0.6372
CAD
USD
1.1634
INR
USD
63.622

Rates may not be current.