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Air Canada expands its fleet
By Bernard Simon
Published: January 30 2005 23:16 | Last updated: January 30 2005 23:16
Air Canada plans to order about 50 wide-body aircraft later this year for its expanding international network.
The Montreal-based carrier, which emerged from a court-supervised restructuring last October, is one of the few traditional North American airlines replenishing its fleet. While most US carriers remain in deep financial difficulty, Air Canada is forecasting an operating profit of about C$1.6bn (US$1.28bn) this year.
The Canadian carrier used the restructuring to cut its debt from C$12bn to C$4bn, and to raise C$1.1bn in new equity. With the bulk of its debt and lease obligations denominated in US dollars, Air Canada has also benefited from a sharp rise in the Canadian dollar.
Robert Milton, chief executive, said the airline was likely to order either the Boeing 7E7 Dreamliner or the Airbus A-350, each with a capacity of about 250 passengers. The new aircraft will replace an ageing fleet of wide-body Boeing 767s.
The 7E7 is due to enter service in 2008. Airbus's shareholders gave the go-ahead for the A-350 last month, with a target introduction date of 2010.
Air Canada is already bumping into capacity constraints as it expands its international services, especially to Asia and Latin America.
It has recently brought two mothballed 767s back into service and is leasing several used 767s and long-range Airbus A-340s.
The carrier will also start taking delivery later this year of 105 Embraer and Bombardier regional jets to improve flexibility.
By Bernard Simon
Published: January 30 2005 23:16 | Last updated: January 30 2005 23:16
Air Canada plans to order about 50 wide-body aircraft later this year for its expanding international network.
The Montreal-based carrier, which emerged from a court-supervised restructuring last October, is one of the few traditional North American airlines replenishing its fleet. While most US carriers remain in deep financial difficulty, Air Canada is forecasting an operating profit of about C$1.6bn (US$1.28bn) this year.
The Canadian carrier used the restructuring to cut its debt from C$12bn to C$4bn, and to raise C$1.1bn in new equity. With the bulk of its debt and lease obligations denominated in US dollars, Air Canada has also benefited from a sharp rise in the Canadian dollar.
Robert Milton, chief executive, said the airline was likely to order either the Boeing 7E7 Dreamliner or the Airbus A-350, each with a capacity of about 250 passengers. The new aircraft will replace an ageing fleet of wide-body Boeing 767s.
The 7E7 is due to enter service in 2008. Airbus's shareholders gave the go-ahead for the A-350 last month, with a target introduction date of 2010.
Air Canada is already bumping into capacity constraints as it expands its international services, especially to Asia and Latin America.
It has recently brought two mothballed 767s back into service and is leasing several used 767s and long-range Airbus A-340s.
The carrier will also start taking delivery later this year of 105 Embraer and Bombardier regional jets to improve flexibility.
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