Air Canada concludes agreement for Boeing 777s and 787 Dreamliners

Air Canada has concluded an agreement with Boeing for the acquisition of up to 36 Boeing 777s and up to 60 Boeing 787 Dreamliners.

The agreement includes firm orders for 18 Boeing 777s, plus purchase rights for 18 more, in a yet-to-be-determined mix of the 777 family's newest models: the 777-300ER, the 777-200LR Worldliner, and the newly announced 777 Freighter. Delivery of the first six 777 aircraft is scheduled commencing in March through to July 2007. The agreement also includes firm orders for 14 new Boeing 787 Dreamliners, plus options and purchase rights for an additional 46 aircraft. Air Canada's first 787 is scheduled for delivery in 2010.

"The finalization of an agreement on the Boeing 777 and 787 is truly welcome news for our customers, employees and investors," said Robert Milton, Chairman, President and CEO of ACE Aviation Holdings Inc. "The superior customer comfort and operating economics of these aircrafts will place Air Canada in a leadership position among North American international carriers and allow us to compete alongside the leading European, Middle East and Asia Pacific carriers."

The operating cost of the 777 and 787 will be significantly less than the airplanes they will replace. Air Canada estimates the fuel burn and maintenance cost savings alone on the 787 to be approximately 30% versus the 767s they will replace.

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