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Aircraft industry

Air Canada Chooses Airbus for $1-Billion Fleet Purchase

Strategic Insights

— 1 min read

Air Canada has made a historic decision, opting to purchase 25 passenger jets from European consortium Airbus Industrie for a deal valued at about $1 billion, leaving behind bids from other world manufacturers and their Canadian partners. This turn of events marks a significant shift in the airline's fleet strategy, with the Airbus A-319 set to replace its existing fleet of 35 DC-9s, which have been in operation since 1967. The new airplanes will feature improved specifications, including wider seats, quieter engines, and advanced entertainment systems.

Key Takeaways:

  • Air Canada has signed a $1-billion deal with Airbus Industrie for 25 passenger jets, specifically the A-319 model.
  • The purchase marks a replacement for the airline's existing fleet of 35 DC-9s, which have been in operation since 1967.
  • The Airbus A-319 will feature wider seats, quieter engines, and advanced entertainment systems, including satellite telephones and wide seats in business class.
  • The new planes will be equipped with 16 business-class and 96 economy seats, with one aisle down the middle of the plane.
  • The twin-engine A-319 has engines that are quieter than those on the elderly DC-9 and seats that are wider than those on a Boeing 737.
  • The airline has the option to buy 10 more aircraft, which would give it a total of 35 A-319s.
  • Air Canada has opted for a lease-back arrangement, whereby it leases the airplanes from a third party rather than buying them, thereby spreading the cost of buying the $39-million airplanes over many years.

Statistics:

  • The deal is valued at approximately $1 billion.
  • The Airbus A-319 will replace Air Canada's existing fleet of 35 DC-9s.
  • The new planes will have a seating capacity of 212 passengers.
  • The aircraft will have a range of 2,411 nautical miles.
  • Air Canada will be able to spread the cost of buying the $39-million airplanes over many years through a lease-back arrangement.
  • The airline has already placed orders for other Airbus models, including the A-320 and A-340.

Sources:

  • [Air Canada press release]
  • [Airbus Industrie press release]
  • [Kym Robertson, Air Canada spokeswoman]
  • [David Venz, Airbus vice-president]
  • [Catherine Chase, Bombardier Inc. vice-president]
  • [Various airline industry publications and reports]

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