News Go

News & articles

Following Airbus deal, Bombardier picks up jet orders

Bombardier has picked up some new orders for its C Series jets, which some analysts see as a favorable response to a plan to build them in Alabama.

In early October, Airbus and Canadian company Bombardier announced a partnership in which Airbus will take a majority stake in the C Series Aircraft Limited Partnership (CSALP) and a new assembly line will be built in Mobile, leveraging Airbus’ experience establishing a Final Assembly Line there for its own A320 family.

Since then:

On Oct. 25, Bombardier responded hotly to a decision by Moody’s rating service to downgrade Bombardier’s credit rating and outlook. Bombardier argued that the decision “does not accurately reflect the value of our partnership with Airbus and is completely disconnected with the market reaction, which has been overwhelmingly positive.”

On Nov. 2, as Bombardier issued its third quarter financial report, which claimed that a European customer, which it did not name, had signed a Letter of Intent for the purchase of up to 61 C Series aircraft, including 31 “firm.” Based on list price, the firm purchase of 31 jets would be a $2.4 billion deal. The company expects to deliver 20-22 C Series jets this year, an output impacted by engine delivery delays from Pratt & Whitney.

On Tuesday, the company announced that EgyptAir had signed a Letter of Intent for a 12-jet purchase with an option of 12 more.

The C Series is a new program and the numbers aren’t huge. As of Sept. 30, Bombardier had taken 360 total orders for CS100s and CS300s, and delivered just 19. By contrast, Airbus figures released in October show that it has received orders for more than 13,000 A320-family jets and delivered nearly 8,000.

But because the C Series jets are so new, every order counts as a vote of confidence in its future. A Bloomberg report said the EgyptAir buy was “especially significant for Bombardier, which gains another customer for its new jet less than a month after the company agreed to cede control of the C…

Read the full article from the Source…

Back to Top