Air Canada last month suggested the potential sale of Air Canada Jazz, just as executives prepared to meet with key unions to discuss cost cuts at its money-losing regional subsidiary. Air Canada seeks to trim a total of C$650 million ($425 million) in labor costs, an amount equal to roughly 23 percent of its annual payroll and related expenditures. Air Canada Jazz aims to shed C$90 million–the exact amount it lost last year.
Air Canada has converted to firm status a former tentative commitment for 15 new Bombardier CRJ700 Series 705s and 15 CRJ200s. The airline plans to start taking deliveries of CRJ200s this year, followed by the CRJ705s next year, the exact dates depending on the timing of its emergence from bankruptcy. The airline also holds a conditional order for 15 CRJ200s and options on another 45 airplanes.
Canada’s largest aerospace company has apparently given up playing coy about its reliance on government support to compete in the large RJ arena. While calling for the federal government in Ottawa to help pay for the development of a new family of 100- to 125-seat jets, Bombardier president and CEO Paul Tellier threatened to build the airplane at the company’s Short Brothers division in Belfast, N.
Air Canada again added to Embraer’s backlog of 170/190-series jets last month with a firm order for 15 Embraer 175s. The order brings to 60 the number of airplanes Air Canada has ordered from the Brazilian manufacturer and chief competitor of Canada’s Bombardier.
In a scenario all too familiar since the advent of the regional jet age, the pilots of Air Canada and its regional airline subsidiary, Air Canada Jazz, could hold the key to the insolvent company’s plans to field at least 90 new jets from Bombardier and Embraer.
Bombardier Aerospace’s case for the C Series may just have grown sounder last month as Boeing announced it would pull the plug on the 110- to 115-seat 717, the proposed Canadian jet’s main competitor. Boeing plans to end production of the weak-selling 717 by the middle of next year, after the last of a backlog of 18 airplanes rolls off its Long Beach assembly line.
Bankrupt Air Canada last month signed a pair of MOUs that call for a split order for 90 airplanes from Bombardier of Canada and Embraer of Brazil. The transactions, which would include firm orders for 15 Bombardier CRJ200s, 30 CRJ700s and 45 Embraer 190s, remain subject to Air Canada’s ability to attract $4 billion in new investment upon emerging from bankruptcy protection.
The Boeing 777-200LR, the world’s longest range commercial airplane, completed its first intercontinental flight last Friday as it arrived here at Le Bourget. Last week in Montreal, the second 777-200LR prototype launched its “Going the Distance” tour of more than 20 cities in the Middle East, Asia, Europe, Australia and North America.
In what is being billed as the biggest such deal in airline history, Air Canada has picked Thales as its supplier-of-choice for in-flight entertainment systems across its fleet of 241 airplanes. The Thales IFE system, called TopFlight i-4500, will be fitted in Airbus, Boeing, Embraer and Bombardier models flown by the airline.
Boeing last month launched the much-anticipated 777 Freighter with five firm orders from Air France. Based on the 777-200LR, the 777 Freighter will fly as far as 4,965 mn with a full 229,000-pound payload, making it the world’s longest range cargo hauler.