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Air Canada: global MAX grounding creates fleet flux

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. 

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