Sign in Subscribe
Aircraft industry

Air Canada Chooses Airbus A319 Over McDonnell Douglas in Major Fleet Replacement

Strategic Insights

— 1 min read

Air Canada is replacing its fleet of 35 aging DC-9's with the A319 aircraft produced by Airbus Industrie, a move expected to save the carrier money and improve its operations. The deal, announced today, includes the purchase of 25 A319's and an option on an additional 10 planes, valued at approximately $1 billion. This acquisition will give Air Canada the second-largest fleet of Airbus planes in North America, behind United Airlines. According to Kym Robertson, a spokeswoman for Air Canada, the A319 is a better fit for the airline due to its shared engine, cockpit, and galley with the A320, which will simplify maintenance and pilot training.

Key Takeaways:

  • Air Canada will replace its fleet of 35 DC-9's with 25 A319's and has an option on an additional 10 planes.
  • The A319 purchase is valued at approximately $1 billion, making it a significant investment for the carrier.
  • The A319's shared engine, cockpit, and galley with the A320 will simplify maintenance and pilot training.
  • This acquisition will give Air Canada the second-largest fleet of Airbus planes in North America, behind United Airlines, which has 100 Airbus models in service.
  • Air Canada suffered heavy losses in the past but predicts breaking even in 1994.
  • Canadian Airlines International recently concluded a deal with American Airlines that may face regulatory review by the US government.

Statistics:

  • 35 DC-9's will be replaced by 25 A319's and the option for 10 more.
  • The A319 purchase is valued at approximately $1 billion.
  • Air Canada has a fleet of 75 Airbus models, second only to United Airlines' 100.
  • Air Canada suffered a loss of $32 million (Canadian) for the first quarter of this year, fewer than expected.
  • Air Canada lost $293 million (Canadian) after provisions for staff reductions and investments in the first quarter of last year.

Sources:

  • Air Canada press release (no date)
  • Richardson Greenshields of Canada Ltd. statement by Philip Koven (no date)
  • Airbus Industrie product catalogue (no date)
  • American Airlines press release (no date)
  • Canadian Airlines International press release (no date)

Read more