Bombardier seeks new CSeries megadeal
• Bombardier Inc. anticipates another major order for the CSeries jet next year following project-bolstering deals from Delta Air Lines Inc. and Air Canada in 2016, and may announce a smaller contract this month.
The Canadian plane maker is pursuing prospects including some high- volume opportunities and would like to gain a foothold in the lowcost airline segment next year, Colin Bole, senior vice president for sales at its commercial aircraft unit, said Tuesday in London.
Bombardier announced the latest CSeries sale on Dec. 2, with Air Tanzania agreeing to buy two CS300 variants, taking the overall order tally to 360 planes. The manufacturer expects to have handed over a total of seven aircraft this year, five to initial customer Swiss and two to Air Baltic Corp., with production curtailed by issues with the model’s Pratt & Whitney engines. Deliveries will step up to the originally planned 30 to 35 in 2017, he said.
“We are not going to announce another megadeal this year, though there may be something smaller, but I’d say we’re hopeful of at least one more in 2017,” the executive said. Montreal- based Bombardier sold at least 75 CS100 planes to Delta and at least 45 CS300s to Air Canada in agreements that gave the faltering project vital bigname customers.
While U. S. discount operator Spirit Airlines Inc. has said it may be interested in buying the CSeries, the capacity of the two variants available is lower than what is flown by budget carriers such as Ryanair Holdings PLC and Southwest Airlines Co.
Bole said that’s because airlines are seeking to minimize costs per seat mile flown by moving to bigger planes. However, he said, the all-composite CSeries would be profitable at lower occupancy levels, enabling discount carriers to add routes that wouldn’t be viable with current Boeing Co. and Airbus Group SE models.
“We don’t want to cut out Airbus and Boeing,” he said. “The CSeries can be complementary. We actually think there’s a strong sales case for low- cost carriers for certain kinds of services where bigger planes don’t work.”
Bole said there may be a market for a larger version of the CSeries with 150- plus seats. He’s not pushing for such a model, given Bombardier’s estimates of demand for 7,000 planes in the 100- to 150-berth range over the next 10 years.
With Swiss having taken delivery of the CS100 in July, Bombardier is working on certification of the plane for takeoffs from the short runway at London City airport. Simulation of the steep approach to the urban hub has prompted “minor software modifications” which have in turn put back the first flight there to the first quarter, though plans for service entry shouldn’t be compromised, Bole said.
Bombardier’s other new plane, the Global 7000 business jet, completed its ninth flight in Wichita, Kansas, on Monday after first taking to the air on Nov. 4, spokesman Mark Masluch said.