Yearly Archives: 2013

Boeing issues a new statement concerning failed IAM talks in Puget Sound for the 777X, receives relocation proposals from 22 states

Boeing logo

Boeing (Chicago) has issued this statement concerning the contract extension discussions with the IAM for the Puget Sound (Seattle) area for the new 777X:

Boeing and the International Association of Machinists & Aerospace Workers District 751 have completed a third day of meetings following an attempt last month to secure a contract extension.

This afternoon, in response to a proposal presented yesterday by the union to secure 777X work in the Puget Sound region, Boeing presented a best and final counterproposal. That offer was rejected by the union leadership.

Boeing’s revised 8-year contract extension would have built on the company’s previous offer with substantial economic improvements. On top of the previous $10,000 signing bonus, employees would have received an additional lump sum bonus of $5,000.ย Employees also would have received additional dental benefits.

The proposal would have kept in place the current rate in which employees accelerate to the top of the pay scale โ€“ commonly referred to as “ZOOM.”

The company would have committed to placing final assembly of the 777X, as well as the fabrication and assembly of the airplane’s composite wing, at a Boeing location in the Puget Sound area. In addition, a separate agreement committing final assembly of the 737 MAX at the Renton, Washington site would have been extended through 2024.

As previously proposed, the long-term contract extension would have included changes to the way members earn future retirement benefits. Employees would keep everything they have accrued under the existing defined benefit plan and earn future benefits under a defined contribution plan with the new Special Company Retirement Contribution, starting November of 2016.

“We entered these discussions to address the concerns we were hearing from our employees,” said Ray Conner, president and CEO, Boeing Commercial Airplanes. “We’ve listened to the union leadership and had an open dialogue in hopes of moving toward each other. Unfortunately the offer, which would have ensured this great airplane for the Puget Sound region, was immediately rejected by the union leadership.”

The 777X site selection process has continued in parallel with this week’s IAM meetings. In an overwhelmingly strong response from interested participants, Boeing has received proposals from 22 states, many of which submitted multiple sites for consideration. A total of 54 sites are now being evaluated in the next critical stage of the process.

Who will now build the new 777X?

Boeing 777X Video:

 

 

 

 

 

 

Air Caraibes to lease three Airbus A350-900s from ILFC

International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc., announced today that it has reached an agreement with French Caribbean carrier Air Caraรฏbes Atlantique Airlines (Guadeloupe) to lease three new Airbus A350-900s. The aircraft have an anticipated delivery timeline between 2016 and 2018, and will be operated on the airlineโ€™s long-haul route network.

Copyright Photo: Andi Hiltl/AirlinersGallery.com. The new aircraft is expected to replace the older Airbus A330s.ย Air Caraibes’ (2nd) Airbus A330-323X F-OONE (msn 965) departs from Zurich.

Video:

Air Caraibes:ย AG Slide Show

Southwest completes the installation of Water Vapor Sensing Systems on 87 Boeing 737 aircraft, will fly international routes next year

Southwest Airlines (Dallas)ย has completed the installation of Water Vapor Sensing Systems (WVSS-II) on 87 Boeing 737 aircraft. The water vapor initiative, a result of a partnership between Aeronautical Radio Incorporated (ARINC), National Oceanic and Atmospheric Administration (NOAA) and SpectraSensors, has the potential to improve weather forecasting by providing real-time and frequent humidity data when aircraft takeoff and land at airports around the country.

“Southwest’s meteorology team has always worked closely with ARINC and NOAA, and the WVSS-II project is symbolic of our strong reliance on each other. We are proud to be the only passenger airline currently participating in the project and look forward to the many ways WVSS-II will impact and improve both weather forecasting and the impact on airline operations,” said Rick Curtis, Chief Meteorologist, Southwest Airlines.

National Weather Service (NWS) forecasters routinely use WVSS-II observations in their day-to-day operations. Monitoring the distribution of moisture in the atmosphere and how the moisture levels change with time play an integral role in forecast preparation. Aviation forecasters rely on WVSS-II data to help determine location and timing of fog, cloud formation, and dissipation, and altitudes of cloud ceilings, all critical to determining safe conditions for aircraft travel.

“Water vapor is the most rapid-changing and under-sampled element in the atmosphere,” said Carl Weiss, an aviation meteorologist for NOAA.ย  “On the heels of a tumultuous weather year, WVSS-II is part of a larger initiative contributing to Weather Ready Nation, our initiative focused on building community resilience in the face of extreme weather events. WVSS-II data upon takeoffs and landings allow forecasters to monitor and stay on top of how moisture is changing in the atmosphere, specifically in severe weather situations when preparedness is especially important.”

WVSS-II, manufactured by SpectraSensors, Inc., measures water vapor in the atmosphere hundreds of times during an aircraft’s flight. These measurements are automatically transmitted to ARINC’s headquarters in Annapolis, MD, via the ARINC GLOBALink/VHFTM data link service. The moisture data along with other aircraft weather data are then forwarded in near real-time to the U.S. National Weather Service, which uses them to improve the accuracy of its computer-generated weather forecasts and severe weather warnings.

“The WVSS-II observations add a critical new piece of weather data to the forecasting puzzle,” says Jeannine Hendricks, ARINC’s Manager for the WVSS program. “For the first time in aircraft operations, we are collecting water vapor data that measures the humidity in the air. This has the potential to revolutionize weather forecastingโ€”especially when predicting thunderstormsโ€”a significant weather occurrence for aviation.”

While weather balloons, previously the only method for capturing weather data, measure wind, temperature, and humidity data just twice per day at certain locations, the water vapor sensors gather humidity data throughout the day at multiple points across the nation. The improved water vapor data will have a direct benefit in the accuracy of forecasts of precipitation and clouds, which will benefit the aviation community, its customers, and the general public.

Southwest Airlines plans to continue working with ARINC and NOAA in conjunction with the National Weather Service to expand WVSS-II installations on its aircraft fleet.

In other news, Southwest will announce a schedule for international service next year according to CEO Gary Kelly and Reuters. This will be the first international routes for the carrier. Subsidiary AirTran Airways currently flies to Mexico and the Caribbean.

Copyright Photo: Eddie Maloney/AirlinersGallery.com.ย Boeing 737-8H4 WL N8310C (msn 38807) arrives in Las Vegas.

Southwest Airlines:ย AG Slide Show

Video:

JetBlue Airways launches high-speed inflight Wi-Fi services

JetBlue A320-200 Fleet (Grd) JFK (JetBlue)(LR)

JetBlue Airwaysย (New York)ย today became the first airline to use high-speed Ka-band satellite connectivity with the launch of Fly-Fiโ„ข, its branded inflight internet product. As the next-generation inflight Wi-Fi, Fly-Fiโ„ขย for the first time brings travelers real broadband internet in the sky and the same at-home internet speeds they are accustomed.

JetBlue Fly-Fi Ka-band satellite connectivity is eight times faster than older, slower inflight connections offered on other U.S. airlines. During the beta period rollout, JetBlue will offer free basic web browsing on board, called Simply Surf, on Fly-Fi equipped aircraft through June 2014. In addition, JetBlue offers a live video streaming high-bandwidth plan, Fly-Fi Plus, at $9 per hour for applications like streaming movies or large downloads. JetBlue has partnered with its inflight entertainment and connectivity subsidiary LiveTV as well as satellite provider ViaSat to bring Fly-Fi to life.

JetBlue logo

“Every traveler using Wi-Fi on JetBlue or any other carrier should test their connection with SpeedTest.net, and post their speeds using #WiFiFlightSpeed on social networks. Travelers should be able to see the speeds of all Wi-Fi systems in the sky and make an informed choice,” said Marty St. George, JetBlue senior vice president marketing and commercial strategy. “Customers should demand fast broadband and should discover what true broadband inflight connectivity means.” SpeedTest.net is an accepted public standard for internet speed measurement.

Creating Fly-Fiโ„ข

JetBlue has spent more than two years working with its wholly owned subsidiary, LiveTV, and ViaSat to create the best customer Wi-Fi experience in the sky. JetBlue set out to find the best onboard internet technology available. With existing technology too slow or too costly, JetBlue chose a different path that mirrors how it approaches bringing humanity back to air travel: invent a new, better experience that puts the customer’s needs first.

JetBlue launches today with three Fly-Fi aircraft, five by yearend and more than 140 aircraft by yearend 2014. JetBlue’s Airbus A320 and A321 fleet will receive their Fly-Fi upgrades during 2014 at a rate of as many as 15 aircraft per month, while the Embraer 190 fleet will be completed in 2015.

In addition to launching Fly-Fi, JetBlue expects to allow taxi-in to taxi-out use of Fly-Fi by January 2014. JetBlue was the first airline to offer expanded use of electronic devices last month.

Copyright Photo: JetBlue Airways.

JetBlue Airways:ย AG Slide Show

Delta adds extra sections and charter flights for the 2014 Bowl Championship Series

Delta Air Lines (Atlanta) has added flights to support fans traveling to the Bowl Championship Series, including the National Championship Game in Pasadena, California as well as the Rose Bowl, Sugar Bowl and Orange Bowl.

A schedule of flights and cities are below:

National Championship, Pasadena, California – January 6, 2014:

Date

Departure Departure Time Arrival Arrival Time

Jan. 4

Tallahassee, Fla.

9:45 a.m. Los Angeles 11:40 a.m.

Jan. 4

Tampa, Fla. 10 a.m. Los Angeles 12:28 p.m.

Jan. 4

Birmingham, Ala. 9:45 a.m. Los Angeles 11:25 a.m.

Jan. 4

Birmingham, Ala. 10:45 a.m. Los Angeles 12:25 p.m.
Jan. 7 Los Angeles 10:05 a.m. Tallahassee, Fla. 5:30 p.m.

Jan. 7

Los Angeles 10:55 a.m. Tampa, Fla. 6:20 p.m.

Jan. 7

Los Angeles 12:55 a.m. Birmingham, Ala. 6:55 a.m.

Jan. 7

Los Angeles 09:05 a.m. Huntsville, Ala. 3:05 p.m.
Jan. 7 Los Angeles 10:30 a.m. Birmingham, Ala. 5:37 p.m.
Jan. 7 Los Angeles 11:30 a.m. Atlanta 6:44 p.m.
Jan. 7 Los Angeles 11:40 a.m. Birmingham, Ala. 5:38 p.m.
Jan. 7

Los Angeles

11 a.m. Atlanta 6:14 p.m.
Jan. 7

Burbank, Calif.

12:20 p.m. Atlanta 7:32 p.m.

Rose Bowl, Pasadena, California – January 1, 2014:

Date

Departure

Departure Time Arrival Arrival Time
Dec. 31 Detroit 10 a.m. Los Angeles 12:11 p.m.
Jan. 2

Los Angeles

10 a.m. Detroit 5:28 p.m.
Jan. 2

Burbank, Calif.

12:25 p.m. Detroit 7:30 p.m.
Jan. 2

Los Angeles

12:30 p.m. Detroit 7:58 p.m.

Sugar Bowl, New Orleans – January 2, 2014:

Date Departure Departure Time Arrival Arrival Time
Jan. 1

Oklahoma City

10:30 a.m. New Orleans 12:10 p.m.
Jan. 3

New Orleans

9 a.m. Oklahoma City 10:50 a.m.

Orange Bowl, Miami, January 3, 2014:

Date Departure Departure Time Arrival Arrival Time
Jan. 2 Columbus, Ohio 9 a.m. Miami 11:30 a.m.
Jan. 5 Miami 9 a.m. Columbus, Ohio 11:45 a.m.

Delta traditionally adds capacity to support the strong demand for nonstop service associated with postseason sporting events.

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 757-232 N6715C (msn 30486) with the special Grammy Awards logo lands in Baltimore/Washington (BWI).

Delta Air Lines:ย AG Slide Show

Air Transat’s parent reports a fiscal year net profit of $54.7 million

Transat A.T. Inc., the parent of Air Transat (Montreal) (website), posted revenues of $808.6 million (all amounts in Canadian dollars) for the quarter ended October 31, 2013, compared with $763.4ย million in 2012, an increase of $45.2ย million, or 5.9%. The Corporation recorded a margin before amortization and depreciation1ย of $80.1ย million , compared with $52.9ย million in 2012, and net income of $54.7ย million ( $1.40 per share on a diluted basis), compared with a net profit of $16.6ย million ($0.43 per share on a diluted basis) in 2012. Before non-operating items, amortization and depreciation, and restructuring charges, Transat reported a margin of $80.6 million , compared with $52.9 million in 2012, and adjusted after-tax income3ย of $54.8 million in 2013 ( $1.40 per share on a diluted basis), compared with $28.7 million ( $0.75 per share on a diluted basis) in 2012.

For the fiscal year ended October 31, 2013, Transat posted revenues of $3.6 billion, versus $3.7ย billion in 2012, a decrease of $66.1 million, or 1.8%. The Corporation recorded a margin before amortization and depreciation1ย of $110.9ย million, versus $17.0ย million in 2012, and a net profit of $58.0ย million ( $1.51 per share on a diluted basis) compared with a net loss of $16.7ย million ( $0.44 per share on a diluted basis) in 2012. Before non-operating items, amortization and depreciation, and restructuring charges, Transat reported a margin of $116.6ย million, compared with one of $17.0ย million in 2012, and net adjusted after-tax income of $62.6 million in 2013 ( $1.63 per share on a diluted basis), versus an adjusted after-tax loss of $15.3ย million ( $0.40 per share on a diluted basis) in 2012.

“We achieved very good results on the trans-Atlantic market and posted profits on the Sun destinations market as well as in France ,” said Jean-Marc Eustache , President and Chief Executive Officer of Transat. “As a result, we had our best fourth quarter ever as well as the best summer in our history. And for the year, we are back to profitability, with a margin improvement of $100 million . Our efforts on all fronts, including costs, product, marketing, revenue management, and so on delivered the expected results. Our cost-reduction and margin-improvement program is tracking to plan.”

Fourth quarter highlights

The Corporation posted revenues of $808.6 million, compared with $763.4ย million in 2012, and a margin before amortization and depreciation1ย of $80.1ย million ( $80.6 million before amortization and depreciation and restructuring charges), compared with $52.9ย million ( $52.9ย million before restructuring charges) in 2012. The increase in revenues was attributable mainly to higher average selling prices, which more than offset the impact of the Corporation’s decision to reduce capacity on its markets (transatlantic and France ), which accounts for the 5.0% reduction in the number of travellers. Across all markets, average selling prices and margins were higher.

Revenues of North American business units, which are generated by sales in Canada and abroad, rose by $55.9ย million (10.9%) compared with the same period in 2012. The increase stemmed in part from the decision to account for all sales of flights between Canada and United Kingdom in North America , whereas a significant portion of said sales was previously accounted for in Europe . For the quarter, capacity on the transatlantic market decreased by 9% compared with 2012; capacity on Sun destinations was similar. North American business units generated a margin before amortization and depreciation1ย of $68.6 million, compared with $55.9 million in 2012. Before restructuring charges, Transat posted a margin before amortization and depreciation of $69.1ย million , versus $55.9ย million in 2012. The improvement in margin is mainly attributable to higher selling prices as well as the Corporation’s cost-reduction initiatives.

Revenues of European business units, which are generated by sales in Europe and in Canada , decreased by $10.7ย million (4.3%) over 2012, mainly due to the aforementioned change in the accounting of certain sales in different geographic areas. European operations resulted in a margin before amortization and depreciation1ย of $11.5ย million , compared with an operating loss before amortization and depreciation of $3.0ย millions in 2012. The improvement in the margin is mainly attributable to higher selling prices and cost-reduction initiatives.

Fiscal year highlights

For the fiscal year, the Corporation’s revenues stood at $3.6ย billion, compared with $3.7ย billion in 2012. Transat recorded a margin before amortization and depreciation1ย of $110.9ย million ( $116.6ย million before amortization and depreciation and restructuring charges), compared with $17.0ย million in 2012 ( $17.0ย million before restructuring charges). Revenues were similar to those posted in 2012. The higher average selling prices offset the Corporation’s decision to reduce capacity on all its markets (Sun, transatlantic and France ). The improvement in margin is mainly due to higher selling prices as well as to the cost-reduction initiatives.

For the winter season, Transat posted revenues of $1.9ย billion , versus $2.0ย billion in 2012, and an operating loss before amortization and depreciation1ย of $22.2ย million ( $18.3ย million before amortization and depreciation and before restructuring charges), compared with one of $58.1ย million in 2012 ( $58.1ย million before restructuring charges). The decrease in revenues mainly stemmed from the Corporation’s decision to reduce capacity on its markets (Sun, transatlantic and France ), which resulted in a 12.0% decrease in traveller numbers. Across all markets, average selling prices and margins were higher than in 2012.

For the summer season, the Corporation recorded revenues of $1.7ย billion , compared with $1.7ย billion in 2012, and a margin before amortization and depreciation of $133.1ย million ($134.9ย million before amortization and depreciation and before restructuring charges), versus $75.1ย million in 2012 ($75.1ย million before restructuring charges). The higher average selling prices offset the Corporation’s decision to reduce capacity on its markets (transatlantic and France ), which had resulted in a 12.0% decrease in traveller numbers. Across all markets, average selling prices and margins were higher than in 2012.

Financial position

As at October 31, 2013, the Corporation’s free cash totalled $265.8ย million, compared with $198.5 million at the same date in 2012 (including the November 2012 sale of the Corporation’s ABCP). The working capital ratio was 1.1, against 1.0, and deposits from customers for future travel amounted to $410.3ย million , compared with $382.8ย million a year earlier. Off-balance-sheet agreements stood at $768.3ย million as at October 31, 2013 , compared with $557.1ย million as at October 31, 2012 , the increase being attributable to the leasing of four Boeing 737-800 aircraft and the renewal of the leases on six Airbus A330s, offset by payments made during the 12-month period.

Outlook for the first six months

On the sun destinations market, Transat’s capacity is approximately 3% higher than that marketed last year. To date, 41% of that capacity has been sold, load factors are lower by 2%, and selling prices are higher by 5% compared to those recorded last year at the same date.

In France , where winter is low season, compared with last year at this time medium-haul bookings are higher by 10%, long-haul bookings are down by 2% and selling prices are down by 2%.

On the transatlantic, also the low season, Transat’s capacity is 8% lower than that marketed last winter. To date, 53% of that capacity has been sold, load factors are lower by 6%, and selling prices are higher by 8%

The Sun destinations market in Canada accounts for a substantial portion of Transat’s business during the winter season, and margins are both thin and volatile. At this early stage in the season, forecasting is difficult because of the following factors: a significant portion of capacity remains to be sold, bookings are last minute, and the Canadian dollar has weakened relative to the U.S. currency. However, to the extent that the conditions do not deteriorate, the Corporation expects to record better results than period last year for the winter.

It is extremely early to comment on the trans-Atlantic market for the summer 2014, as only 9% of the seats have been sold. Transat’s capacity is 2% higher than in 2013, load factors are similar, and prices are superior.

Cost-reduction and margin-improvement Initiatives

Transat is continuing with implementation of the initiatives in its return-to-profitability plan, including measures to reduce operating costs and changes to its systems and processes. In April 2013, the Corporation also announced its decision to internalize narrow-body medium-haul aircraft (Boeing 737-800s) for its Sun destination routes outbound from Canada, starting in May 2014 . The various measures (cost-reduction initiatives, additional revenues and efficiency gains) had a favorable impact of $20 million on the margin in 2012 and of $15 million in 2013. The Corporation expects another $20 million in 2014, as well as in 2015, when internalization of the narrow-body fleet will produce its full benefits.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Air Transat will start operating four Boeing 737-800s in May 2014. The pictured nine Airbus A310-300s will gradually exit the fleet by 2015. Airbus A310-304 C-GTSY (msn 447) arrives at Malaga, Spain.

Air Transat:ย AG Slide Show

American orders 30 Bombardier CRJ900s to be operated by PSA Airlines and 60 Embraer ERJ 175s

American Airlines (Dallas/Fort Worth), a wholly owned subsidiary of American Airlines Group Inc., announced today that it has signed agreements with Bombardier Inc. and Embraer S.A. to purchase 90 new 76-seat regional jets. Consistent with American’s Plan of Reorganization and Merger Agreement, these aircraft will provide much improved economics for the airline as they will replace smaller, less efficient 50-seat regional aircraft scheduled for retirement.

American has firm orders for 30 Bombardier CRJ900 NextGen aircraft, with options for up to 40 more. The CRJ900s will have 12 First Class, 32 Main Cabin Extra and 32 Main Cabin seats, and the firm order of CRJ900 aircraft will be operated on behalf of American by PSA Airlines, Inc. (2nd) (Dayton), a wholly owned subsidiary of US Airways. American expects to begin taking delivery of the CRJ900s in the second quarter of 2014.

American also has firm orders for 60 Embraer ERJ 175 type aircraft with options for up to 90 more. They will feature 12 First Class, 20 Main Cabin Extra and 44 Main Cabin seats, and American expects to begin taking delivery in the first quarter of 2015. The company will determine which regional carrier will fly the E175s at a later date. Both the CRJ900 and the E175 will fly in the American Eagle livery.

Both the CRJ900 and the E175 are powered by General Electric CF34-8 engines. “GE Aviation has enjoyed a strong relationship with American Airlines and US Airways. We are thrilled to be part of the fleet renewal program underway following the merger,” said Allen Paxson, general manager of the Regional Engines and Services at GE Aviation.

The pilots of PSA Airlines, represented by ALPA, issued this statement on this news:

โ€œThe pilots of PSA Airlines, a wholly owned subsidiary of US Airways, welcome the news of American Airlinesโ€™ purchase of 30 CRJ900s as an important and exciting step forward for PSA. This firm order fulfills the pledge made to us in a letter of commitment our pilots ratified in September.

โ€œWhen PSA pilots voted on our new contract in March, and on subsequent agreements, we had to make some difficult decisions. As a result, we preserved core provisions in our contract and improved pilotsโ€™ job security here at PSA and career progression to our mainline partner. Todayโ€™s announcement of a new aircraft order, coupled with our first scheduled seniority-based interviews at US Airways, prove that our tough decisions have borne fruit.

โ€œWhile we acknowledge that the planned delivery schedule of these new aircraft is ambitious, the pilots of PSA stand ready to work with our managements to protect and improve our airline and our futures as an integral part of the new American Airlines.โ€

Copyright Photo: TMK Photography/AirlinersGallery.com. Republic Airlines (2nd) currently is the only Embraer ERJ 175 operator for American Airlines. ERJ 170-200LR (ERJ 175) N401YX (msn 17000363) taxies at Toronto (Pearson).

American Airlines:ย AG Slide Show

US Airways Express-PSA Airlines:ย AG Slide Show

American Eagle-Republic:ย AG Slide Show

Makani Kai Air Cessna 208B Grand Caravan crashes into the water off of Molokai’s north shore, one dead

Makani Kai Air (Makani Kai Helicopters) (Honolulu) Cessna 208B Gran Caravan N687MA (msn 1002) (above) carrying eight passengers and a pilot crashed into the Pacific Ocean off the north shore of Molokai, Hawaii yesterday afternoon. State Health Department Director Loretta Fuddy died in the ditching. The single engine Caravan had departed from Kalaupapa bound for the Honolulu base.

According to the charter airline the company has been “providing air charter, air tours, aircraft management and aircraft maintenance since 1988”.

The airline specializes in aerial tours of Molokai from other points in Hawaii. Here is the information on this “Kalaupapa Experience” tour from the airline’s website:

Makani Kai Air Kalaupapa Experience

Read the full story from the Star Advertiser in Honolulu: CLICK HERE

Dramatic video of the Caravan ditching:

Video of a typical Molokai aerial tour:

Top Copyright Photo: Ivan K. Nishimura/Blue Wave Group. The ill-fated Cessna 208B Grand Caravan N687MA (msn 1002) taxies at Honolulu on October 25, 2013 (all others by Makani Kai Air).

Makani Kai Air logo

Air Canada switches back to Boeing for its narrow body fleet, plans to order up to 109 Boeing 737 MAX aircraft

B

Air Canada (Montreal) has announced its mainline narrowbody fleet renewal plan that includes commitments, options and rights to purchase up to 109 Boeing 737 MAX aircraft. The new aircraft will replace Air Canada’s existing mainline fleet of Airbus narrowbody aircraft, creating one of the world’s youngest, most fuel efficient and simplified airline fleets.

The agreement with Boeing, which is subject to completion of final documentation and other conditions, includes firm orders for 33 737 MAX 8 and 28 737 MAX 9 aircraft with substitution rights between them as well as for the 737 MAX 7 aircraft. It also provides for options for 18 aircraft and rights to purchase an additional 30. Deliveries are scheduled to begin in 2017 with 2 aircraft, 16 aircraft in 2018, 18 aircraft in 2019, 16 aircraft in 2020 and 9 aircraft in 2021, subject to deferral and acceleration rights.

“We are pleased to announce our agreement with Boeing for the purchase of 737 MAX aircraft as part of the ongoing modernization of Air Canada’s fleet,” said Calin Rovinescu, President and CEO of Air Canada. “Renewal of our North American narrowbody fleet with more fuel efficient aircraft is a key element of our ongoing cost transformation program and the enhanced passenger cabin comfort provided by the Boeing MAX will help us to retain Air Canada’s competitive position as the Best Airline in North America. Our narrowbody fleet renewal program 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 20 per cent will generate an estimated CASM reduction of approximately 10 per cent as compared to our existing narrowbody fleet.”

Air Canada continues to evaluate the potential replacement of its Embraer ERJ 190 fleet with more cost efficient, larger narrowbody aircraft that are better suited to its current and future network strategy. Consistent with this strategy, the agreement with Boeing provides for Boeing to purchase up to 20 of the 45 Embraer ERJ 190 aircraft currently in Air Canada’s fleet. The E190 aircraft exiting the fleet will be initially replaced with larger narrowbody leased aircraft until the airline takes delivery of the Boeing 737 MAX aircraft.ย  The company will be reviewing various options over the next six monthsย for the remaining 25 Embraer E190 aircraft including continuing to operate them or replacing them with a yet to be determined number of aircraft in the 100 to 150 seat range.

Air Canada’s plan is for its total fleet including Air Canada rougeโ„ข, excluding aircraft flown by its contracted regional carriers, to grow from 192 aircraft as at September 30, 2013 to approximately 214 by the end of 2019, on a pro forma basis. Additionally, for further growth flexibility, Air Canada has 13 options and rights to purchase 10 Boeing 787 aircraft, rights to purchase 13 Boeing 777 aircraft as well as the 18 options and 30 purchase rights for Boeing MAX aircraft.

Images: Boeing.

Air Canada logo-1

Air Canada:ย AG Slide Show

Boeing 737 MAX Video:

Planned Boeing 737 MAX Cockpit:

Boeing 737 MAX Cockpit (Boeing)(LR)

NTSB Chairman Hersman’s briefing on the Asiana Airlines Boeing 777 crash at San Francisco

National Transportation Safety Board’s Chairperson Hersman briefs the media at yesterday’s hearing in Washington on the Asiana Airlines Boeing 777 crash. The main theme of the investigation is centered around the overuse of automation.

Read the analysis by Reuters: CLICK HERE