dfish
26th Apr 2005, 01:34
Air Canada to modernize fleet
MONTREAL — ACE Aviation Holdings Inc. announced plans today to modernize Air Canada's fleet with the purchase of up to 36 Boeing 777s and 60 Boeing 787 Dreamliners.
"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," ACE chairman and president Robert Milton said in a release.
"The superior customer comfort and operating economics of these aircraft will put us in the company of the leading European, Middle East and Asia Pacific carriers."
The company says the plan will improve efficiency and lower costs. So far, it includes firm orders for 18 Boeing 777s and 14 new Boeing 787 Dreamliners.
Earlier in April, Milton had said the company was planning to replace the carrier's entire fleet of wide-body jets over several years. A Wall Street Journal report pegged the upgrade at a cost of $6 billion US.
ACE Aviation (TSX: ACE.B) recently secured $642 million U.S. in financing and has previously signalled its plan to make a major aircraft order.
Milton has also said ACE will quickly pursue the sale of a stake in its Aeroplan frequent-flyer unit, which has a total value estimated at between $900 million and $1.6 billion U.S. That move could involve an initial public offering and creation of an income trust.
"Our analysis of these aircraft pointed to overwhelmingly attractive economics," Milton said. "We have estimated the fuel burn and maintenance cost savings alone on the 787 to be approximately 30 per cent versus the 767s they will replace."
The companies expect to finalize the agreement by mid-year.
Delivery of some of the planes could begin next year with three Boeing 777s. The first of the planes will operate between Vancouver and Tokyo.
Montreal-based Air Canada emerged from bankruptcy-court protection last September after dramatically slashing debt and staff. It and rival WestJet Airlines of Calgary benefited from the collapse of cut-rate competitor Jetsgo in March
MONTREAL — ACE Aviation Holdings Inc. announced plans today to modernize Air Canada's fleet with the purchase of up to 36 Boeing 777s and 60 Boeing 787 Dreamliners.
"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," ACE chairman and president Robert Milton said in a release.
"The superior customer comfort and operating economics of these aircraft will put us in the company of the leading European, Middle East and Asia Pacific carriers."
The company says the plan will improve efficiency and lower costs. So far, it includes firm orders for 18 Boeing 777s and 14 new Boeing 787 Dreamliners.
Earlier in April, Milton had said the company was planning to replace the carrier's entire fleet of wide-body jets over several years. A Wall Street Journal report pegged the upgrade at a cost of $6 billion US.
ACE Aviation (TSX: ACE.B) recently secured $642 million U.S. in financing and has previously signalled its plan to make a major aircraft order.
Milton has also said ACE will quickly pursue the sale of a stake in its Aeroplan frequent-flyer unit, which has a total value estimated at between $900 million and $1.6 billion U.S. That move could involve an initial public offering and creation of an income trust.
"Our analysis of these aircraft pointed to overwhelmingly attractive economics," Milton said. "We have estimated the fuel burn and maintenance cost savings alone on the 787 to be approximately 30 per cent versus the 767s they will replace."
The companies expect to finalize the agreement by mid-year.
Delivery of some of the planes could begin next year with three Boeing 777s. The first of the planes will operate between Vancouver and Tokyo.
Montreal-based Air Canada emerged from bankruptcy-court protection last September after dramatically slashing debt and staff. It and rival WestJet Airlines of Calgary benefited from the collapse of cut-rate competitor Jetsgo in March