Air Canada (TSX:AC.B) has finalized a substantial order for 30 787-10 Dreamliner aircraft from The Boeing Company (NYSE:BA) as the airline looks to enhance its fleet with modern, fuel-efficient aircraft.
The deal encompasses a firm order for 18 jets, and options for an additional 12, aiming to replace aging wide-body aircraft and bolster the airline's long-haul capabilities.
Deliveries of the aircraft are scheduled to commence in the fourth quarter of 2025, with the last aircraft expected to join the fleet in the first quarter of 2027.
The decision to invest in the 787-10 model comes as a strategic move to phase out older, less efficient planes in Air Canada (TSX:AC.B)'s existing fleet.
The 787-10 Dreamliner, being the largest variant in the Dreamliner family, offers impressive capacity, capable of accommodating over 330 passengers depending on the chosen seat configuration. Additionally, the aircraft boasts 175 cubic meters of cargo volume, further enhancing its utility for both passenger and cargo transport.
Air Canada (TSX:AC.B) is currently operating a Boeing 787 fleet, which includes 30 787-9s and eight 787-8s, and the airline has two 787-9s on order. The addition of the 787-10 variant is set to provide the airline with additional flexibility and capacity for long-haul routes.
The 787-10, while having the highest passenger capacity, does have a shorter range compared to other Dreamliner variants. This allows for efficient operation on various long-haul routes, making it suitable for services to Europe and most services from Vancouver to Asia. However, certain routes from Montreal or Toronto to Asia, as well as routes from Vancouver to the South Pacific, may not be within the range of this aircraft.
In conjunction with this Boeing order, Air Canada has diversified its fleet strategy by also placing orders for Airbus A321XLRs, focusing on long-haul flights. Although not wide-body aircraft, the A321XLRs will play a vital role in expanding the airline's reach for extended journeys.