In a year that’s seen soaring fuel costs, a deadly crash, and angering Quebec to the point that its CEO decided to retire, Air Canada is hoping its new jet can deliver a W.
What happened: Air Canada showcased its first A321XLR plane from Airbus ahead of its maiden commercial voyage next week. The single-aisle aircraft consumes 20% less fuel than its predecessor and can fly up to 4,700 nautical miles, meaning AC can use it to launch more routes to Europe and South America, which are growing in demand, at a lower cost.
It’s one of 30 that Canada’s largest airline ordered from the European manufacturer, though Air Canada said “friction” is causing delays in deliveries for the other ones.
The airline also inked a deal with Airbus in February, ordering eight of its A350-1000 models, and should receive its first Boeing 787-10 Dreamliner later this year.
Why it matters: Fuel efficiency and more routes are nice, but the main goal of these new planes is premium offerings. The A321XLR is introducing an upgraded version of business class with 14 lie-flat seats, and the new Dreamliners’ business classes are even fancier.
“Demand for premium experiences [is] growing much more quickly than demand for the core product,” Air Canada COO Mark Nasr said in an interview. “We’re going to shift to be more of a premium offering, and we’ll grow revenue just by that change.”
Zoom out: This trend holds true for the aviation industry writ large. Business class has long made up the bulk of airline trip revenue, but the growing economic divide has now made it an even bigger focus. —QH
