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SEATTLE, April 25, 2005 -- Boeing [NYSE: BA] and Air Canada today announced an agreement to renew the airline's wide-body fleet with up to 36 Boeing 777s and up to 60 Boeing 787 Dreamliners. Air Canada will use the airplanes to modernize its existing fleet and improve operating efficiencies. The agreement includes firm orders for 18 777s, plus purchase rights for 18 more, in a yet-to-be-determined mix of the newest 777 models: the 777-300ER, the 777-200LR Worldliner (the longest range airplane in the world), and the 777 Freighter. Deliveries of the 777s begin next year. The agreement also includes firm orders for 14 787s, a mix of 787-8s and 787-9s, plus options and purchase rights for an additional 46 airplanes. Air Canada's first 787 will be delivered in 2010. The firm orders are valued at approximately $6 billion at list prices. The order is subject to several conditions including final documentation. The companies expect to finalize the agreement by mid year. "Our decision to modernize our fleet with the 777 and 787 Dreamliner will move Air Canada into a clear leadership position among North American international carriers with the world's two newest and most efficient twin-engine, long-haul airplanes," said Robert Milton, president and chief executive officer of ACE Aviation Holdings, Inc., the parent company of Air Canada. "The superior customer comfort and operating economics of these aircraft will put us in the company of the leading European, Middle East and Asia Pacific carriers." The 777 and 787 are uniquely suited to meet Air Canada's current route structure and growth plans, which include long-range, non-stop routes for both passengers and cargo, with an increasing emphasis on growing markets in Latin America and China. "Our analysis of these aircraft pointed to overwhelmingly attractive economics. We have estimated the fuel burn and maintenance cost savings alone on the 787 to be approximately 30 percent versus the 767s they will replace," said Milton. "Particularly important in the current high fuel price environment are that the savings on these two line items alone will be more than twice incremental ownership costs in acquiring these aircraft." Operating in the same fleet, the 777 and 787 will allow Air Canada to tailor capacity to seasonal demand with two aircraft types that fly the same speed and range yet offer different seating capacities. "We are proud to be a part of Air Canada's plans for future growth and look forward to supporting the airline fully as it begins to incorporate our 777s and 787s into its fleet," said Boeing Commercial Airplanes President and CEO Alan Mulally. Montreal-based Air Canada said last week its strategy for passenger service includes enhanced daily non-stop flights between Toronto and Beijing by 2006, and Toronto and Shanghai flights by the middle of next year. It will start Vancouver to Guangzhou service in the summer of 2007. For cargo operations, Air Canada will begin offering Toronto to Shanghai service next month and boost that cargo service on daily routes next year. Canada's flag carrier also expects to start Toronto to Guangzhou cargo service in 2007 and eventually plans to add Tianjin to its freight operations. "The timing of Air Canada's decision is critical for locking in rapidly disappearing early delivery positions for the 787, which is essentially sold out through 2010," said Mulally. "Air Canada also has secured three of the very few remaining near-term delivery slots for the 777." Air Canada is the 18 th airline to select the 787 Dreamliner, bringing the total number of announced firm orders and commitments to 217. Air Canada joins a growing team of 787 launch customers who've recognized the 787's exceptional value and superior operating performance. The Dreamliner is designed with airlines, passengers, investors and the environment in mind. The technologically advanced airplane will use 20 percent less fuel than today's airplanes of comparable size, provide customers with up to 45 percent more cargo revenue capacity, and present passengers with innovations including a new interior environment with higher humidity, wider seats and aisles, larger windows, and other conveniences. The Boeing 777 family of airplanes is the world's most advanced, and continues to evolve with the recent addition of the world's longest range airliner, the 777-200LR Worldliner, and the Boeing 777 Freighter. To date, more than 35 airlines have placed orders for 699 777s, making it the most preferred airplane in its class. ### Boeing Contacts:
Boeing Commercial Airplanes Media Relations: 206-766-2910
Yvonne Leach, 787 Dreamliner 206-854-5027
Marc Birtel, 777 Program 206-390-4115 subscribe/unsubscribe
'''April 27, 2005'''

An American Airlines 777 landing at Heathrow airport
Boeing has secured two large orders for new aircraft.

Air Canada has ordered US$6 billion in new airliners, while Air India has signed a deal for a further US$7 billion.

The Air Canada deal includes firm orders for 18 777s and 14 of the new mid-size, long-range 787 Dreamliner. Options are included for 18 more 777s and 46 more 787s.

The Air India order is worth US$6.8 billion for 50 787s.

Air India says the new fuel-efficient airliner will save US$300 million in fuel a year, while Air Canada has estimated a 30% fuel saving over their existing 767s. Air India have also said that the 20 extra seats the 787 offers over a similarly-sized Airbus A330 was a decisive factor.

Korean Air also bought 20 Dreamliners earlier this month.

Boeing now has a total of 237 orders and commitments for the 787.

The Boeing 777 is a family of long range widebody twin engine airliners built by Boeing Commercial Airplanes. It carries between 305 and 550 passengers and has a range from 5,600 to 8,870 nautical miles (10,400 to 16,400 km). The first flight of the 777 was in 1994.

The Boeing 787, or Dreamliner, is a mid-sized passenger airliner currently under development by Boeing Commercial Airplanes and scheduled to enter service in 2008. It will carry between 200 and 350 passengers depending on the seating configuration, and be more fuel-efficient than earlier airliners. In addition, it will be the first major airliner to use composite material in the majority of its construction.