Loading

Air Canada: global MAX grounding creates fleet flux

Premium Analysis

As contingency planning continues worldwide for the still-grounded Boeing 737 MAX, Air Canada faces distinct challenges among North American operators, since the aircraft was pegged to be the backbone of the Air Canada's narrowbody fleet and the airline was in the process of a significant ramp-up with the aircraft when the grounding occurred.

Compared with American, Southwest and United, the 737 MAX represents a higher proportion of Air Canada's fleet.

Air Canada deserves credit for navigating the complexities created by the removal of the MAX from service, but the airline has warned that even with the contingencies it has in place, its 3Q2019 financial performance will be affected by the aircraft's grounding.

The airline has already removed the 737 MAX from its flight schedule through early 2020, and is warning that it could take up to a year from when the aircraft returns to service for the airline to achieve a subfleet of 50 Max aircraft.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,008 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.