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Aircraft industry

Boeing Scores Big Win Over Airbus with Air Canada Order

Strategic Insights

— 1 min read

Boeing has secured a major victory in its competition with European rival Airbus after securing a large order from Air Canada. The Canadian airline has agreed to purchase 32 wide-body aircraft, including 14 of Boeing's latest 787 model. This order marks a significant shift in Air Canada's fleet, with Boeings set to become its sole long-haul aircraft in the future. The airline's CEO, Robert Milton, stated that the 787's improved fuel efficiency and maintenance costs, saving approximately 30 percent compared to its existing Boeing 767s, were major factors in the decision.

Key Takeaways:

  • Air Canada has ordered 32 wide-body aircraft, including 14 Boeing 787s, from Boeing, marking a shift away from Airbus and Bombardier CRJ regional jets.
  • The order includes 18 Boeing 777s, with deliveries set to begin next year and the 787s in 2010.
  • The list price for the order is approximately $6 billion, with options for 46 additional 787s and 18 777s.
  • The Boeing 787 is expected to reduce fuel efficiency and maintenance costs by approximately 30 percent compared to the airline's existing Boeing 767s.
  • The order marks a significant milestone for Boeing, with the company now having 217 orders and commitments for the 787 model.
  • The deal is expected to greatly reduce the cash outlay for the airline, with proceeds from the sale of existing aircraft likely to offset the cost of the new order.

Statistics:

  • The list price for the order is approximately $6 billion.
  • The Boeing 787 is expected to reduce fuel efficiency and maintenance costs by approximately 30 percent.
  • Air Canada has taken options on 46 additional 787s and 18 777s.
  • Boeing now has 217 orders and commitments for the 787 model.
  • Air Canada's share price has risen 75 percent since October 2003, despite the steep rise in fuel prices.

Sources:

  • "Air Canada Picks Boeing for New Jets" by Dennis Boutsikker, The Toronto Star (no date given)
  • "Boeing Wins Big Order from Air Canada" by Bloomberg News (no date given)
  • "Air Canada Announces Plans to Sell Aeroplan Frequent Flyer Program" by Canadian Business (no date given)

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