Could an Airbus A321neo order be on the cards for Air Canada? Bloomberg is reporting that the Canadian flag carrier has been in preliminary talks with Airbus SE for 10 to 20 of the long-range A321neo variant. There is no specification of whether it would be the A321LR, which is currently in service, or the heavily anticipated A321XLR, set to join fleets next year.

President and Chief Executive, Mike Rousseau, expressed interest in the narrowbody's back in 2021:

"I think we've done a pretty good job covering ourselves for growth beyond our expectations, but certainly also for even further fine-tuning and potentially getting rid of the A319-100s if the market doesn't come back as fast as we want it to. That gives us the opportunity to then step into potentially a new type of aircraft like the A321neo(LR)s, for example, that that potentially has a place in Air Canada's fleet as we go forward"

Why the Airbus A321neo?

The interest in the A321neo comes as a surprise. The carrier is currently replacing its aging A320ceos with new Boeing 737 MAX 8s, 8 of which are still awaiting delivery. However, with Air Canada committing to rebuilding its global network in the wake of the pandemic, the A321neo may be the jet to do it.

With over 4,000 orders on the books for the narrowbody, the A321neo has proved a popular choice with airlines. Offering a range of 4,000 NM and a capacity of 180-200 in a traditional two-class configuration, it fills the hole left by the Boeing 757 in the middle-of-the-market segment. It currently serves on transatlantic services with JetBlue, SAS, and Air Transat.

The A321XLR is pinned to expand that further, boasting a range of 4,700 NM, well above the 737 MAX 8's range of 3,550 NM. If chosen by Air Canada, the A321XLR could open up medium capacity, long-haul routes into Central Europe from Toronto and Montreal, and transpacific services to Japan from Vancouver.

Air Canada's fleet development

The Airbus A220 has already set a precedent for Air Canada's success with smaller jets, of which it currently has 37. The A220 has been a hit on its low capacity, mid-range services which operate across North America, Central America, and the Caribbean. Last month, the carrier reversed its canceled order for 12 of the type, joining the fleet in 2024.

Speaking of the airline's decision on the A220, Rousseau has said:

"Following a rigorous evaluation of its capabilities, we're confident that the aircraft's superior range, economics and seating capacity will provide a stellar passenger experience and contribute significantly to our development plans to expand our network and increase point-to-point service to Canadian and transborder markets."

It's likely that the A321neo would have more than just a "potential" home in the Air Canada fleet, fitting in alongside the A220 and 737 MAX 8 to provide strong point-to-point services across North America and Europe.

What do you think of Air Canada's interest in the A321neo? Let us know in the comments section.