Air Canada Shops for Jets as Return to Profit Is Forecast

Discussion in 'Air Canada | Aeroplan' started by tcook052, Dec 6, 2012.  |  Print Topic

  1. tcook052
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    tcook052 Silver Member

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    http://www.bloomberg.com/news/2012-...for-jets-as-return-to-profit-is-forecast.html

    Air Canada is considering purchases of mid-sized jets amid growing confidence the country’s biggest carrier will be profitable next year after an anticipated fifth straight loss.

    Talks are under way with Boeing Co., Airbus SAS and Bombardier (BBD/B) Inc. for more than 100 aircraft, Chief Commercial Officer Ben Smith said in a telephone interview. A decision to buy planes may come “in the short term,” Smith said last week, sooner than the one-year timeline the airline gave on Nov. 8.

    Adding single-aisle models with the latest fuel-saving technology that can carry about 150 passengers could help Air Canada shed its status as North America’s least-efficient carrier. Its fleet is twice as old as that of discounter WestJet Airlines Ltd. (WJA), which Montreal-based Air Canada is challenging by creating a low-cost unit.
     
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  2. canucklehead
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    canucklehead Gold Member

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    Hope the C-Series gets a good look! It will be out before the Neo and Max lines and does not have the backorders Boeing and Airbus have for those planes.
     
  3. tomh009
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    tomh009 Gold Member

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    The CSeries would be a good fit for the lower end, given that Air Canada is shifting many of its E-Jets to AC Express already, and the A319s are fairly old and not particularly efficient in the first place. And neither Airbus or Boeing has a strong solution for the 100-150-seat space at the moment.

    Airbus and Boeing are booked out to almost 2020 for the A320 neo and 737 MAX, and the current models make no sense for AC. Bombardier could probably start deliveries in 2015 ...
     
  4. Tom, AC BIS's numbers are growing so bigger planes are IMHO a need. I think AC may have some purchase options with Boeing that would put deliveries closer in if the options are converted. Besides many of the planes coming off the line are bought by leasing firms and AC does lease some of their flleet.
     
  5. tomh009
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    tomh009 Gold Member

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    BIS percentages don't really impact optimal A/C sizes -- routes and frequencies do, they determine whether you need to get more smaller planes or fewer bigger ones. And the gap from Jazz's E75's 73 seats to the 150-160 seats of the 737-8 and A320 neo is huge. (Neither 737-7 or A319 neo is cost-effective and it shows: not a single order for a 737-7 yet, and only 26 for the A319 neo.

    First MAX is not due to be delivered until 2017 (assuming it's on schedule!) so unlikely that AC would be able to get deliveries much before 2020.
     
  6. We'll se when they make their announcement, but I'm betting on my thoughts:p
     
  7. tomh009
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    tomh009 Gold Member

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    Anything is possible ... but as of today there are 969 orders in the 737 MAX queue before AC makes decision (and even more in the A320 neo queue).
    http://www.pdxlight.com/neomax.htm

    And that's before choosing the "right (size of) airplane for the job" ...
     

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