Within the presentation of its 9-month results for 2017, Bombardier announced that a European customer has signed a letter of intent (LOI) for up to 61 C Series, including 31 firm aircraft and options for an additional 30 aircraft. The LOI is subject to the execution of a purchase agreement which is expected before year-end. Based on the list price, a firm order would be valued at approximately $2.4 billion. This amount would increase to nearly $4.8 billion should all 30 options be exercised.
“This significant new order confirms the increasing confidence customers have in the C Series,” said Bellemare. “Looking forward, as Airbus joins the program, and with the C Series continuing to prove itself in service, we expect sales momentum to accelerate quickly.”
In other C Series news:
- New engine delivery delays from Pratt & Whitney will impact full-year C Series aircraft deliveries. Furthermore, certain engines originally designated for production aircraft in the fourth quarter will be redirected to support spare engine requirements of current C Series customers. As a result, approximately 8 to 10 C Series aircraft are now expected to be delivered in the fourth quarter, and approximately 20 to 22 aircraft for the full year. Commercial Aircraft’s revenue guidance for 2017 is therefore adjusted to approximately $2.5 billion. Bombardier has entered into an LOI whereby Pratt & Whitney has agreed to support excess inventory generated by engine delays by providing it with a supplier advance starting in the fourth quarter. This advance will not be included in Bombardier’s free cash flow but will benefit overall liquidity and cash on hand. The LOI is subject to the execution of definitive agreements between both parties, which is expected before year-end.
- C Series aircraft program continues to gain market acceptance with exceptional performance:
- The C Series aircraft is performing very well, with up to 3% better fuel burn than first advertised, creating additional opportunities and improving economics of the aircraft;
- The CS100 aircraft from Swiss International Air Lines (SWISS) completed its first commercial flight into London City Airport in August, becoming the largest passenger aircraft certified to operate from this challenging city airport, offering new possibilities for airlines and the flying public; and
- The C Series aircraft received a second Environmental Product Declaration, confirming its unmatched environmental performance. Bombardier CS300’s Environmental Product Declaration (EPD®) comes one year after the EPD® for the CS100 aircraft.