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Tuesday April 26, 08:48
Boeing to get scores through deal with Air Canada
(by Brigitta Zulfitzler)

Boeing to get scores through deal with Air Canada

Air Canada will buy Boeing’s 32 wide-body airplanes in a deal that can give the Chicago-based aerospace giant more chances to regain the leadership in the industry.

According to list prices, the initial order would total to nearly $6 billion to Boeing.

Boeing has associated its Dreamliner 777 with hopes for a recovery in its long war with the front-runner Airbus.

Airbus, in its turn, intents to develop the A350, a plane taken as a direct competitor to the Dreamliner. But while the last is getting optimistic trends, competitor’s A350 is stumbling in its sales.

Air Canada, which emerged from bankruptcy protection, could use the deal to expand long-range, non-stop services, particularly to Asia and Latin America. Moreover, the purchase can deliver large savings in fuel costs, the airline says.

The agreement has not indicated which specific types of 777s Air Canada will purchase. It is expected to be adjusted by midyear but is subject to final documentation.

The news made a positive impact on the stock as Boeing’s shares floated nearly 3%.

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