**Breaking News: Air Canada Shocks Aviation World with Boeing Exit**

In a stunning turn of events, Air Canada has announced its decision to part ways with Boeing’s 737 Max aircraft, sending shockwaves through the commercial aviation industry. This unexpected move marks a seismic shift for the Canadian flag carrier, which has long been a staunch supporter of Boeing. Effective immediately, Air Canada will transfer its entire fleet of 737 Max aircraft to its low-cost subsidiary, Air Canada Rouge, by 2028.

The 737 Max, once seen as a cornerstone of Air Canada’s short and medium-haul strategy, now faces an uncertain future as the airline pivots towards an all-Airbus fleet. This decision comes as Air Canada grapples with the need to modernize Rouge’s aging Airbus A320 fleet, which averages nearly 18 years old. By transferring the newer 737 Max models, Air Canada aims to enhance Rouge’s operational efficiency and profitability, capitalizing on the aircraft’s 20% lower operating costs per seat compared to the A320.

Air Canada currently operates 43 Boeing 737 Max 8 aircraft, with plans to receive nine more by 2026. However, the airline is now focused on a strategic shift towards long-haul and ultra-long-haul routes, prompting the need for a fleet that aligns with these ambitions. This transition raises questions about the future of Boeing in the Canadian market and its ability to regain lost ground against Airbus.

Experts suggest this move could bolster Boeing’s position with Air Canada Rouge while simultaneously signaling a significant blow to Boeing’s reputation, given the aircraft’s troubled history. As Air Canada embraces Airbus for its future, the implications for both manufacturers will be felt industry-wide.

Stay tuned as this story develops, with potential ramifications that could reshape the competitive landscape of North American aviation.