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Air Canada back with deal big Boeing jet order

10-Nov-2005

SAN FRANCISCO (XFNews) - Air Canada's parent company announced Wednesday it would buy as many as 96 Boeing Co. wide-body jets worth at least $6 billion, reviving a deal scotched this summer by a contract spat with its pilots union.

The deal includes as many as 60 of Boeing's newest jet, the still unbuilt 787 Dreamliner, as well as up to 36 units of the 777.

So far, firm orders from the parent company, ACE Aviation Holdings, total 18 Boeing 777s, with rights to buy another 18. The deal also includes 14 firm orders for the 787s, with options and rights for 46 more.

The 777s will start to be delivered in 2007; the 787s, in 2010.

The list price on the 787 runs from $125 million to $135 million, while the 777 range, depending on model, can run from $171 million to $253 million. Air Canada is interested in the 787 Freighter, the 777-300ER and the 777-200LR, according to the company.

In April, Boeing and Air Canada had announced the deal, pegging list prices for the firm orders then at $6 billion, but the deal was canceled in June. The order was scuttled after members of Air Canada's pilots' union rejected a cost-cutting deal that would have cleared the way for the purchase.

That issue has since been resolved, ACE Aviation said.

Boeing's stock ended the day down 0.5% at $64.71.


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