Order Cancellations | Air Canada backs down and will receive 45 Airbus A220s

Air Canada is changing its tune and will indeed receive 45 Airbus A220 planes, as planned in 2016, when the airline announced its order for the former Bombardier C Series.

Julien Arsenault
The Press

Last month, the company decided to take back 10 A220s in addition to the other two aircraft announced last year. The information went rather unnoticed, but it was disclosed by Air Canada last Friday, in its financial report aimed at providing an update on its fourth quarter results.

“These 12 aircraft are those that Air Canada had previously waived purchase under an amendment to the purchase agreement entered into with Airbus in November 2020”, it is written.

Citing the turmoil caused by the COVID-19 pandemic, the country’s largest airline had signaled its intention to withdraw 12 aircraft from its contract. Airbus had never officially canceled the orders, however.

The A220’s order book totals 745 aircraft, covering several years of production.

In 2016, Air Canada’s commitment to what was then called the C Series proved crucial to the program’s survival.

“We are pleased with our client’s decision to move forward with the delivery of all 45 aircraft under the initial contract,” Airbus Canada communications chief Annabelle Duchesne said in a statement. declaration.

Air Canada operates 27 A220-300 aircraft, the largest version of the family. Six aircraft will be delivered in 2022. The airline will receive six A220-300s in 2024 and six more in 2025.

In its quarterly report, Air Canada points out that it also has options to acquire 30 additional A220-300s.

On February 4, Airbus (1.2 billion) and the Legault government (380 million) confirmed a joint investment of 1.5 billion to accelerate the production rate of the A220 – the element on which the aircraft manufacturer is betting. European to enable the program to be profitable around 2025.

Airbus will soon deliver six aircraft per month: four to Mirabel and two to Mobile. The rate should gradually be established at 14 aircraft monthly around 2025.

By agreeing to invest again, the Quebec state, which had already invested 1.3 billion in the old C Series, retains its 25% stake in the program. Airbus will also have to wait four more years, until 2030, before having the opportunity to buy out its partner’s stake.

If the A220 achieves its objectives, its value should increase, which should allow Quebec not to find itself empty-handed.