Air Canada cancels jet orders, defers deliveries amid depressed demand

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Regardless of the pandemic, Air Canada is urgent forward with plans to acquire Montreal’s Transat A.T. Inc. — whose Air Transat airline operates a fleet that features brand-new Airbus A321neo jets. The deal needs to be completed by February, the businesses mentioned final month.

“We preferred Transat earlier than COVID, and we proceed to love Transat after COVID,” Rovinescu mentioned.

Air Transat’s A330 and A321neo jets “match very effectively inside our fleet experience,” Rovinescu added. “Individuals usually do mergers and acquisitions to do price synergies. That isn’t what this train is about. That is far more about income synergies and enlargement into the leisure marketplace for us.”

Wanting forward, Air Canada expects to function 25 per cent of its capability within the fourth quarter in contrast with a yr in the past. Money burn within the quarter will vary from $1.1 billion to $1.three billion, or $12 million to $14 million a day.

Air Canada burned by $818 million of money within the fourth quarter, or $9 million a day. That’s lower than the $15 million to $17 million the corporate had earlier forecast.

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