Air Canada has placed an order with Boeing for up to 109 B737 Max aircraft.
The new jets will replace the airline's existing mainline fleet of Airbus narrowbody aircraft.
The agreement, which is "subject to final documentation", includes 61 firm orders plus 18 options and rights to purchase an additional 30 planes.
Of the 61 firm orders, 37 are for B737 Max 8 aircraft and 28 are for B737 Max 9s "with substitution rights between them as well as for the 737 Max 7 aircraft".
Deliveries are scheduled to begin in 2017 with two aircraft, 16 aircraft in 2018, 18 in 2019, 16 in 2020 and nine in 2021.
Calin Rovinescu, president and CEO of Air Canada, said: "We are pleased to announce our agreement with Boeing for the purchase of 737 Max aircraft as part of the ongoing modernisation of Air Canada's fleet.
"Renewal of our North American narrowbody fleet with more fuel efficient aircraft is a key element of our ongoing cost transformation program and the enhanced passenger cabin comfort provided by the Boeing Max will help us to retain Air Canada's competitive position as the Best Airline in North America.
"Our narrowbody fleet renewal program is expected to yield significant cost savings. We have estimated that the projected fuel burn and maintenance cost savings on a per seat basis of greater than 20 per cent will generate an estimated CASM reduction of approximately 10 per cent as compared to our existing narrowbody fleet."
Air Canada last week unveiled the cabin design and seating that will feature on its Boeing 787 Dreamliner fleet (see news, December 5).
Graham Smith
