Air Canada ups orders for Boeing

MONTREAL- Air Canada is now the largest customer for the Boeing 787 in North America, after announcing Tuesday it'll increase its firm orders of the Dreamliner to 37, up from 14.

Deliveries of the 787s, which are replacing Air Canada's older, less fuel-efficient aircraft, are to begin in 2010, the company said.

The 787 base model seats between 210 to 250 passengers and lists in U.S. dollars between $148 million and $158 million, Boeing says.

The announcement, combined with additional orders for Boeing 777s, means Air Canada is relying fully on Boeing for its long-haul aircraft and turning its back on rival Airbus SAS in that category.

On Tuesday, Virgin Atlantic Airways Ltd. also announced an order for 15 Dreamliners, worth about $2.8 billion US at list price, Boeing said.

Air Canada estimates the fuel and maintenance costs for a B787 are about 30 per cent lower than those of the older B767.

As part of the carrier's fleet renewal program, older Airbus A340s and A330s, along with Boeing 767 aircraft will be replaced.

The airline said it expects to meet its target of removing from service 23 aircraft in 2007.

Air Canada's revised agreement with Boeing includes options for an additional 23 aircraft, bringing the total to 60 Dreamliners. At the same time, Air Canada has reduced its original firm order for B777s by two aircraft, the airline said in a statement.

The carrier is expected to take delivery of 16 B777s by the end of 2008, in addition to one it's leasing.


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