Air Canada Orders 45 Bombardier CSeries Jets

Air Canada with Boeing 787-9 Dreamliner

Bombardier and Air Canada announced the signing of a letter of intent to purchase up to 75 CSeries CS300. The agreement includes 45 firm orders and 30 options, and includes conversion rights to the CS100 under certain circumstances. Based on list prices, the order is valued at approximately USD 3.8 billion.

In a press conference held today in Saint-Laurent, Quebec, Calin Rovinescu, President and CEO, Air Canada, together with members of his leadership team were greeted by Alain Bellemare, President and CEO, Bombardier Inc. Together Bellemare were Fred Cromer , president of Bombardier Commercial aircraft and Rob Dewar, vice president of program C series aircraft.

These aircraft come as part of the plan to renovate the narrow body fleet of Air Canada, it began in December 2013 with the acquisition of 61 Boeing 737 MaxS. "The renewal of our fleet of narrow-body aircraft in North America with more capable and efficient is a key to our transformation program ongoing costs -PLUS comfort element of improved passenger cabin provided by the CS300 will help us maintain the competitive position of Air Canada as the only international carrier Four star network in North America, "Rovinescu said.

Fred Cromer said the order as a "very important for the CSeries aircraft program strategic score and we are looking forward to further strengthen a relationship that spans 30 years." Air Canada and Bombardier have a longstanding relationship. To date, the regional partners Air Canada Express operate a mixture of more than 120 regional jets and turboprops. According to Rovinescu, Air Canada was "one of the launch customers for the Canadair Regional Jet, and today's announcement reflects our continued support for Canada's aerospace industry and new technologies can develop the industry."

The plan to renew the fleet of single-aisle involves the removal of 45 Embraer E190 service with Air Canada. 20 of these aircraft will be made by Boeing as part of the operation MAX 737, while the remaining 25 aircraft will be replaced by the CSeries. The Boeing 737 MAX Deliveries are scheduled to begin in late 2017 and extended to 2021, while deliveries of the C series are scheduled to begin in late 2019 and extended to 2022.
According to Bellemare, order, which is one of the largest to date for the program in the C series "will be the catalyst for future orders in North America and worldwide."

Bombardier CSeries, the CS100

With this agreement, the Montreal-based manufacturer has now received 678 firm orders and commitments for both variants of-the CS100 and CS300 CSeries stretched. Swiss will be the launch customer for the CS100, and the aircraft is expected to enter service in the first half of the year. Last December, the CS100 received your certification, and the CS300 is on track to receive in the coming months.

Air Canada seeks to be the first carrier in North America to operate the CSeries. Although Porter Airlines planned to rely on CSeries for its expansion, the elected liberal Canadian government reiterated its commitment not to allow the jets to Billy Bishop Toronto Airport, base and the largest center of this regional airline. In addition, this week WestJet CEO Gregg Saretski said the CSeries was "too small" for the airline, and "too big" for Encore regional operator.

A recent tour of the United States CSeries has spurred rumors in the industry about a possible order of United and Delta Air Lines. To date, in the case of States, the airline has said it could place an order for up to 50 CS100, while Delta Air Lines CEO Richard Anderson said the Atlanta-based company is "taking a look very serious "in the purchase of the aircraft. For Bombardier, the order represents a major victory for the program of the C series, tarnished by financial problems. Last October, the Government of Quebec announced an investment of USD 1 billion in the program, plagued by growing cost overruns and schedule execution two years after the entry into service (EIS).

The company expects revenues in 2016 USD 16.5 million to USD 17.5 billion, below expectations of $ 18.07 trillion of analysts. Bombardier's net loss was reduced to USD 677 million, or 31 cents per share, in the fourth quarter of USD 1.6 billion, or 92 cents per share, a year earlier. Excluding special items, Bombardier broke even, but analysts expected a profit of 2 cents per share.

Quarterly revenue was USD 5.02 billion, well below expectations of USD 5.48 trillion of analysts. Bombardier, which received cash injections from the previous pension fund Depositary et placement du Québec and the Government of Quebec, said it expects $ using free cash flow of USD 1.0 billion in USD 1.3 billion this year.