UPDATE 3-Air Canada says costs may dip, to buy up to 75 Bombardier jets

Wed Feb 17, 2016 11:50am EST
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* Plans to buy CS300 aircraft for list price of $3.8 bln

* Q4 adjusted earnings in line with average analyst estimate

* Operating revenue up 2.5 pct (Adds detail on maintenance deal with Quebec, quote about CSeries)

By Allison Lampert

Feb 17 (Reuters) - Air Canada said on Wednesday its costs would fall this year if the Canadian dollar remained unchanged from 2015 levels, and announced plans to buy up to 75 CS300 aircraft from Bombardier Inc and service the jets in Quebec.

The decision to maintain the CSeries planes in the province for the next 20 years is part of a deal in which the Quebec government agreed to drop a lawsuit against Canada's largest airline over its heavy maintenance operations in Montreal.

Those operations were formerly run by Aveos Fleet Performance.

The Montreal-based carrier had filed an appeal in Canada's Supreme Court over the issue.

"We are very pleased to have settled the Aveos lawsuit and the uncertainty it could have brought," Air Canada Chief Executive Calin Rovinescu told analysts on a conference call to discuss the company's fourth-quarter earnings.   Continued...