Air Canada Signs LOI for up to 75 Bombardier CS300 Aircraft

Air Canada has signed a Letter of Intent with Bombardier for the acquisition of up to 75 Bombardier CS300 aircraft powered by Pratt & Whitney PurePower PW1500G engines as part of its narrowbody fleet renewal plan.

The LOI is for 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.

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

"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," said Calin Rovinescu, President and CEO of Air Canada. "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% should generate an estimated CASM reduction of approximately 10%, when compared to the aircraft it will replace."

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.

Bombardier C Series Aircraft

The 100 to 150-seat C Series aircraft offers 19-inch-wide seats, large overhead bins and some of the largest windows in the single-aisle market.

The C Series aircraft's maximum range has 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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