National Post

Lack of engines forces Bombardier to rethink CSeries delivery forecast

- Ross Marowits

MONTREAL • Bombardier Inc. could be set to announce next week that it won’t meet its forecast for delivering about 30 CSeries jets this year because of a lack of engines.

The Montreal-based com- pany said it is reviewing its delivery plans for 2017 and will provide an update on Nov. 2 when it unveils its third- quarter results. The company has delivered 19 CSeries to date, including 12 so far in 2017.

Bombardier was responding after United Technologi­es Inc., the maker of the Pratt & Whitney geared turbofan engines, told analysts Tuesday that it recently decided to hold back some engine shipments to Bombardier and Airbus so it could offer spare engines for airlines already flying the CSeries and A320neo aircraft.

“It was unfortunat­e that we couldn’t meet our commitment­s to Airbus and Boeing, or Airbus and Bombardier, but they understood the need to keep the airline customers up flying and we’ve done I think the right thing for the business in the long term,” UTC president and CEO Gregory Hayes said in a conference call.

UTC said Pratt shipped 120 geared turbofan engines during the quarter, putting it on track to ship 350 to 400 engines for this fiscal year and nearly doubling that the following year.

Pratt shipped upgraded hardware for seal issues earlier in the year to address problems that surfaced in the new engines.

“While we’re still seeing some success with the actions we’ve taken to date, we’re also looking at design alternativ­es that are expected to further improve durability,” Hayes said.

Pratt took a US$ 196- million charge in the third quarter related to the engines Meanwhile, UTC said the purchase of a majority stake in the CSeries by Airbus validates the performanc­e of the engines..

Hayes said UTC subsidiari­es United Technologi­es Aerospace Systems, Pratt and Rockwell Collins have a total of 34 per cent- to 35-per cent content in the CSeries.

“We have ... a big investment in this aircraft and a lot at stake in seeing that it’s successful,” he said. “And I think long- term it would be a good deal for UTC as well given the content that we have on the aircraft.”

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