The Boeing Company (NYSE:BA) said on Tuesday that it and Air Canada (TSE:AC.B) have finalized a $6.5 billion order for 61 Boeing 737 MAX aircraft that will lead the airline’s renewal plan.
The deal consists of 33 737 MAX 8s and 28 737 MAX 9s, including the rights to purchase 30 more 737 MAXs.
"Our narrow-body fleet renewal program with the 737 MAX is expected to yield significant cost savings and is a key element of our ongoing cost transformation program," said Calin Rovinescu, president and CEO of Air Canada. "Projected fuel and maintenance cost improvements of more than 20 percent per seat will generate an estimated cost per available seat mile CASM reduction of approximately 10 percent compared to our existing narrow-body fleet. In addition, the 737 MAX offers improvements to the environment, making this the best choice for Air Canada."
The 737 MAX aircraft is 40 percent quieter, but crucially, it improves fuel efficiency and reduces carbon emissions by 14 percent.
"We're honored Air Canada selected Boeing for its single-aisle fleet renewal," said Brad McMullen, vice president of North America Sales, Boeing Commercial Airplanes. "The 737 MAX will deliver big fuel savings to the airline while providing Air Canada's customers with best-in-class passenger amenities."
The 737 MAX has accumulated more than 1,900 orders to date from 37 countries worldwide.
The first 737 flight is due to take place in 2016, with customers receiving orders at the beginning of the third quarter in 2017.