This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-25329272
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Boeing wins $6.5bn Air Canada order | Boeing wins $6.5bn Air Canada order |
(about 1 hour later) | |
Air Canada has ordered 61 Boeing 737 MAX planes worth $6.5bn (£4.2bn) at list prices, a big win for the planemaker over its rival, Airbus. | |
The planes will replace its current fleet of Airbus narrow-body aircraft. | The planes will replace its current fleet of Airbus narrow-body aircraft. |
Air Canada said the new planes will help it cut fuel and maintenance costs on a per-seat basis by more than 20%. | Air Canada said the new planes will help it cut fuel and maintenance costs on a per-seat basis by more than 20%. |
Airlines have been keen to upgrade their fleets to more fuel-efficient aircraft amid high fuel prices and falling profit margins. | Airlines have been keen to upgrade their fleets to more fuel-efficient aircraft amid high fuel prices and falling profit margins. |
"Renewal of our North American narrow-body fleet with more fuel efficient aircraft is a key element of our ongoing cost transformation programme," Calin Rovinescu, chief executive of Air Canada, said in a statement. | "Renewal of our North American narrow-body fleet with more fuel efficient aircraft is a key element of our ongoing cost transformation programme," Calin Rovinescu, chief executive of Air Canada, said in a statement. |
'Vote of confidence' | |
The rising demand for fuel-efficient aircraft has triggered competition among planemakers as they fight for a bigger share of the growing market. | |
The 100-200 seat narrow-body - or single-aisle - aircraft market is forecast to generate $20 trillion (£12.8tn) over the next 20 years. | |
The sector is currently dominated by Airbus's A320 and Boeing's 737 aircraft. | |
Air Canada's order includes options and rights to purchase 48 additional Boeing planes. | |
The airline said it was also evaluating the potential replacement of its Embraer E190 fleet with "more cost efficient, larger narrow-body aircraft that are better suited to its current and future network strategy". | The airline said it was also evaluating the potential replacement of its Embraer E190 fleet with "more cost efficient, larger narrow-body aircraft that are better suited to its current and future network strategy". |
Analysts said that Air Canada's decision to opt for Boeing planes to replace the existing Airbus fleet was a major endorsement for the US firm. | |
"It's a strong vote of confidence in the 737 MAX," said Chris Murray, an analyst at AltaCorp Capital. |
Previous version
1
Next version