Air Canada increases order for Boeing 787

Air Canada boosted its order for Boeing's new 787 Dreamliner to 37 aircraft from its original call for 14. The airline said it will become the largest North American customer for the Dreamliner.

Air Canada, which announced the increased order on Tuesday, said the jets will begin arriving in 2010. The revised order includes options for another 23 787s for a total of up to 60 Dreamliners.

"As we take delivery of new, fuel-efficient aircraft, we are removing older aircraft from the fleet to create one of the youngest, most efficient, customer-friendly fleets in the world," said Montie Brewer, Air Canada's president and CEO, in a release.

Air Canada also said it has cutits order for Boeing 777s by two aircraft which were due to be delivered in 2009. The carrier is scheduled to take delivery of of 16 777s, plus one leased from International Lease Finance Corp., by the end of 2008. Air Canada received its first 777 on March 30.

The airline also said it is making progress on reducing its fleet size through subleases or returning leased aircraft. Air Canada said it expects to meet its goal of removing eight widebody and 15 narrowbody aircraft from its fleet this year.