December 11, 2013 - 2:33 PM
MONTREAL - Air Canada plans to spend up to US$6.5 billion to buy 61 narrowbody aircraft from Boeing as it moves to update its fleet over the next decade.
The country's largest carrier (TSX:AC.B) says it could expand the order to as many as 109 of Boeing's 737 MAX planes as it replaces older Airbus and some Embraer aircraft.
The order includes three sizes of Boeing 737 MAX aircraft and includes options for 18 planes and rights to purchase an addition 30 aircraft.
Deliveries of the firm order are scheduled to begin in 2017 with two planes and be completed in 2021.
The Montreal-based airline says it continues to evaluate the replacement of its Embraer E190 aircraft with more cost efficient planes such as Bombardier's (TSX:BBD.B) 110- to 160-seat CSeries.
As part of the deal, Boeing will purchase up to 20 of Air Canada's 45 E190s and replaced them with larger leased planes until the 737 aircraft are delivered. Air Canada will review its options over the next six months for the remaining 25 Embraer planes.
News from © The Canadian Press, 2013