Air Canada Nears Boeing 787 Deal as Widebody Demand Jumps

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1970-01-01 08:00

Air Canada is closing in on a deal for as many as 20 Boeing Co. 787 Dreamliners to

Air Canada is closing in on a deal for as many as 20 Boeing Co. 787 Dreamliners to renew and expand its long-haul fleet, according to people familiar with the matter, in the latest sign of surging demand for large commercial jets.

The Canadian carrier is near an agreement to order between 15 and 20 of the twin-aisle aircraft, said the people, who asked not to be identified because the discussions are confidential. The 787 carries a list price of just under $300 million for the variant most-used by Air Canada, suggesting a deal value of up to $6 billion before typical industry discounts.

“We have not made any decisions,” Peter Fitzpatrick, Air Canada’s spokesman, said in an email. A Boeing representative declined to comment.

Amos Kazzaz, the Canadian airline’s chief financial officer, told analysts in a conference call Friday the airline is “constantly in the market looking for lift” as demand picks up.

Air Canada would join other airlines locking in delivery positions on the latest generation of wide-body jets as long-distance flying rebounds from a prolonged slump caused by the coronavirus pandemic. United Airlines Holdings Inc. unveiled an order for 100 Dreamliners along with an equal number of options in December. Recent customers include the kingdom of Saudi Arabia, which is starting a new airline, and Air India, which took both Boeing and Airbus SE widebodies as part of its massive 470-plane deal in February.

Large aircraft orders are likely to be in the spotlight next month at the Paris Air Show, the industry’s biggest gathering.

Boeing’s shares extended gains following Bloomberg’s report, rising 3.6% at 2:03 p.m. in New York. Air Canada was up 5.3%.

The airline operates 38 787s, including 30 of the larger 787-9 variant, according to Air Canada’s website.