Bombardier Secures Multiple Orders in December
Orders for both CSeries and CRJ regional jets were announced. Nevertheless, Canadian manufacturing will drag through 2014, led by slowdown in aerospace sector.
December was a good month for the company and its new CSeries program. Bombardier Aerospace announced on December 19 that an ‘undisclosed’ airline based in the Americas signed a Letter of Intent to acquire 12 CS100 airliners with options on an additional 18. Based on the list price of the CS100 airliner, a firm-orderc ontract would be approximately $870 million US and could increase to $2.08 billion US for the 18 options, according to the company. On December 20, Bombardier Aerospace announced that airBaltic signed a firm purchase agreement to acquire 10 all-new Bombardier CS300 airliners, with purchase rights on a further 10CS300 aircraft. Based on the list price of the CS300 airliner, the firm-order contract is valued at approximately $764 million US and could increase to $1.57 billion US should the 10 purchase rights be converted to firm orders, according to Bombardier.
These orders are in addition to booked orders and commitments for 352 CSeries aircraft that include firm orders for 138 CSeries airliners the company had through September 2012.
While booking orders, the company is moving towards first flight in 2013. The company said the wings for the first CSeries flight test vehicle (FTV1) are being mated to the fuselage at the company's final assembly facility in Mirabel, Quebec, after arriving from Bombardier Aerospace Belfast in December. First flight of the CSeries is scheduled to happen by the end of June 2013. Complete Airframe Static Test (CAST) article for the CSeries aircraft is complete and airframe tests are scheduled for January 2013.
CRJ Gets a Big Order too.
The existing Bombardier regional jet program, the CRJ, also got a boost in December with an order from Delta Air Lines. Bombardier announced on Dec. 6 that the airline placed a firm order for 40 CRJ900 NextGen regional jets with options on an additional 30. The CRJ NextGen design featuresnew interiors with larger overhead luggage bins, larger windows, improved lighting and redesigned ceiling panels and sidewalls. It also features design improvements for better fuel efficiency.
In addition, a Chinese customer ordered seven CJ700s.
Aerospace Industry Lull Predicted in Canada until CSeries Hits its Stride.
Nevertheless, Canadian aerospace business and profits are expected to dip in the coming year. According to the CapeBreton Post, The Conference Board of Canada predicts a slowdown in new aircraft orders. Coupled with global economic uncertainty, they expect depressed Canadian aerospace manufacturing profits through the end of 2013. An “improved outlook in 2015 and beyond coincides with the impact of Bombardier’s CSeries commercial jet. The smaller version of the plane (CS100) is slated to enter into service in June 2014, followed by the more popular larger model (CS300) by the end of that year.