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Air Canada to Purchase Bombardier C Series as Part of its Fleet Renewal Program

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Air Canada to Purchase Bombardier C Series as Part of its Fleet Renewal Program

Old 18th Feb 2016, 01:55
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Air Canada to Purchase Bombardier C Series as Part of its Fleet Renewal Program

Good Evening All:

Taken from the Canada News Wire:

Agreement includes 45 firm orders plus options to purchase an additional 30 aircraft

MONTREAL, Feb. 17, 2016 /CNW Telbec/ - Air Canada today announced that it has entered into a Letter of Intent (LOI) with Bombardier Inc. for the acquisition of up to 75 Bombardier CS300 aircraft powered by Pratt & Whitney Pure Power ® PW1500G engines as part of its narrow body fleet renewal plan. The LOI contemplates 45 firm orders plus options to purchase up to an additional 30 aircraft and includes substitution rights to CS100 aircraft in certain circumstances.

Deliveries are scheduled to begin in late 2019 and extend to 2022. The first 25 aircraft on delivery will replace Air Canada's existing mainline fleet of Embraer E190 aircraft, with the incremental aircraft supporting Air Canada's hub and network growth, creating one of the world's youngest, most fuel efficient airline fleets.

The C Series purchase is subject to completion of final documentation and satisfaction of certain other closing conditions precedent.

"We are delighted to announce this important agreement with Bombardier for the purchase of CS300 aircraft as part of the ongoing modernization of Air Canada's narrow body fleet," said Calin Rovinescu, President and CEO of Air Canada. "With its high fuel efficiency performance and greater seating capacity, the next generation technology of the C Series is very well suited for our current and future network strategy and will be an extremely efficient addition to our fleet. The renewal of our North American narrowbody fleet with more capable and efficient aircraft is a key element of our ongoing cost transformation program - plus the enhanced passenger cabin comfort provided by the CS300 will help us to retain Air Canada's competitive position as the only Four-Star international network carrier in North America.

"The entry of the C Series into our fleet is expected to yield significant cost savings. We have estimated that the projected fuel burn and maintenance cost savings (on a per seat basis) of greater than 15 per cent should generate an estimated CASM reduction of approximately 10 per cent, when compared to the aircraft it will replace.

"Air Canada has a long history of collaboration with Bombardier. Air Canada Express regional partners operate one of the largest fleets of Bombardier aircraft in the world with a mix of over 135 regional jets and turboprop aircraft by December 31, 2016.

"We were one of the launch customers for the Canadair Regional Jet and today's announcement reflects our continued support for Canada's aerospace industry and for the new technologies the industry may develop. We fully expect the new technology of the C Series to efficiently meet the demanding needs of our current and future network strategy," concluded Mr. Rovinescu.

The acquisition of the C Series aircraft represents a key element of Air Canada's narrowbody fleet renewal program and complements the acquisition of 61 Boeing 737 MAX aircraft announced in December 2013 to replace the larger end of the airline's mainline narrowbody fleet. The Boeing agreement provides for Boeing to purchase up to 20 of the 45 Embraer E190 aircraft in Air Canada's fleet and the first 25 C Series will replace the remaining E190s. Boeing 737 MAX deliveries are scheduled to begin in late 2017 and extend to 2021, while the C Series deliveries are scheduled to start in late 2019 and extend to 2022.

About Bombardier C Series aircraft

According to Bombardier, the C Series family of aircraft, representing the fusion of performance and technology, is a 100 per cent all-new design. By focusing on the 100- to 150-seat market segment, Bombardier has designed the C Series aircraft to deliver unparalleled economic advantage to operators and to open up new opportunities for single-aisle aircraft operations. By employing advanced materials, state-of-the-art technologies and advanced aerodynamics, combined with the groundbreaking Pratt & Whitney PurePower® PW1500G engine, the C Series aircraft is delivering a greater-than 10 per cent unit cost advantage compared to similarly-sized, re-engined aircraft. In addition to delivering best-in-class economics with the C Series aircraft, Bombardier has placed considerable emphasis on cabin design to ensure a superior passenger experience. The aircraft offers 19-inch-wide seats that set a new industry standard, large overhead bins that accommodate a carry-on bag for each passenger, and the largest windows in the single-aisle market. Together these attributes create a widebody feel that offers passengers an unparalleled level of comfort. All noise performance testing on the CS100 aircraft has been completed and data confirms it is the quietest in-production commercial jet in its class. The aircraft's noise performance and its outstanding short-field capability make it ideal for varied types of operations. The C Series aircraft's maximum range has also been confirmed to be up to 3,300 NM (6,112 km), some 350 NM (648 km) more than originally targeted.
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