MONTREAL - Air Canada plans to upgrade its fleet with as many as 36 Boeing 777 and 60 Boeing 787 Dreamliner aircraft, the company's parent firm, ACE Aviation Holdings Inc., said Monday.
The airline said it has placed firm orders for 18 Boeing 777s, with rights to the remainder. The 777s are slated to go into service in 2006.
Air Canada has also placed firm orders for 14 Boeing 787s, with rights and options for the remainder. The first 787 is due to arrive in 2010.
Boeing said the price of the firm orders is about $6 billion US.
"Our decision to modernize our fleet with the 777 and 787 Dreamliner will move Air Canada into a clear leadership position among North American international carriers with the world's two newest and most efficient twin-engine, long-haul airplanes," said Robert Milton, chair, president and CEO of ACE.
The deal is expected to be finalized by the middle of 2005.
Milton said the new 787s will save Air Canada about 30 per cent on fuel consumption and maintenance costs compared to the 767s they will replace.
Restricted voting shares of ACE were off 50 cents at $35.30 on the TSX on Monday.