Bombardier expected to name launch customer of new C-Series

[teacher]

Bombardier expected to name launch customer of new C-Series
ERIC REGULY, Globe and Mail Update

LONDON — Bombardier Inc. is set to move into direct competition with industry heavyweights Boeing and Airbus with the expected announcement Sunday morning of the launch customer for the new C-Series jet, a $3-billion program that has been an on-again, off-again project for four years.

Bombardier officials would not confirm or deny on Saturday that the C-Series, with 110 to 130 seats, had found a buyer or buyers among airlines or aircraft-leasing companies. But it is rolling out its top aerospace officials Sunday morning at the Farnborough air show, just outside of London, to make a major announcement. Analysts and fund managers assume it will be related to the C-Series.

The announcement will be made by Bombardier chief executive officer Pierre Beaudoin; Guy Hachey, the president of the Montreal company's aerospace division; and Gary Scott, president of Bombardier commercial aircraft.

Notice of the press conference went out Saturday, suggesting that Bombardier had nailed down a launch customer in the last few days. All the aerospace companies are keen to make big announcements at the bi-annual Farnborough show, one of the industry's top gatherings of aircraft buyers and sellers.

If the project goes ahead, it will create about 2,500 new jobs. It is expected that the plane will be built in Mirabel, near Montreal, though Missouri has been pushing hard to get a piece of the manufacturing action. The Canadian and Quebec governments would no doubt withdraw some or all of their proposed financial assistance if the plane were to be built outside of Canada. About one-third of the $3-billion development bill will come from government sources.

Bombardier is keen to push ahead with the C-Series in spite of the gloom in the airline industry, triggered by soaring fuel prices and an economic slowdown in North America and in Europe. That's because airlines that want to stay in business will have to retire their gas-guzzling clunkers and replace them with the most fuel-efficient jets, said Clifford Ransom, president of Ransom Research of Baltimore.

“The old jets are going to get parked in the desert,” he said.

Bombardier has claimed that the C-Series will consume about 15 per cent less fuel, and will be about 20 per cent cheaper to operate than current jets of comparable size. Mr. Ransom said airlines that cannot afford to buy the C-Series outright will be tempted to rent them from airline-leasing companies.

While the C-Series would compete with the Boeing 737, the Airbus 319 and their variants, Bombardier is apparently emboldened by lack of plans by either manufacturer to replace the small jets with more efficient models in the near term. This would leave Brazil's Embraer as the C-Series toughest competitor at first, though analysts assume Boeing and Airbus will eventually compete directly with the C-Series.

Mr. Beaudoin last month said the C-Series project is “very advanced” but would not confirm the rumours that the plane would be officially launched at Farnborough.

Analysts Jacques Kavafian of Canada's Research Capital has said Bombardier should be able to sell 3,000 of the aircraft over 20 years. If the plane is launched on Sunday, the first versions would be delivered in 2013.

http://ctv2.theglobeandmail.com/servlet ... v-business

[Snowgoose]

Looks like it's Lufthansa

http://www.canada.com/topics/technology ... 3fd9148e53

Reuters
Published: Sunday, July 13, 2008

FARNBOROUGH -- Bombardier formally launched a new 110-130 seat airliner, the CSeries, on Sunday in a bid to challenge Airbus and Boeing in one of their core markets.

Announcing the long-awaited launch on the eve of the Farnborough air show, the Canadian company said it had selected Mirabel near Montreal as the site to assemble the planes, which will enter service in 2013.

Mirabel had been competing with Kansas City, Missouri.

Launch customer Lufthansa has provisionally ordered 30 planes with an option for 30 more, Bombardier said in a news release. The CSeries will sell for $46.7 million each.

The aircraft marks a branching out from Bombardier's current lines of regional jets and turboprops, which hold up to 100 or 80 passengers respectively.

Airbus and Boeing have a combined backlog of about 1,100 aircraft of the types where Bombardier wants to poach business.

The five-abreast CSeries will compete with the smaller version of the single-aisle Boeing 737 and Airbus A320 families.

The plane is powered by Pratt & Whitney engines.

[benoit.baril]

Sounds good.
Some more action in CYMX.
Long press release following for those interested

Press Releases
Bombardier Launches CSeries Aircraft Program
July 13, 2008 — Farnborough, U.K.
Aerospace

Letter of interest for up to 60 aircraft from Lufthansa; significant interest from airlines worldwide Mirabel selected as final assembly site, Bombardier’s Belfast facility for the development and manufacture of the wings; manufacture of aft fuselage and cockpit to take place at Bombardier’s Saint-Laurent site Repayable investments with the governments of Canada and Québec as well as Northern Ireland and British Government Departments Bombardier today announced that its Board of Directors has granted approval for the launch of the CSeries family of aircraft, a new game-changing five abreast commercial airliner family, with the economics, performance, environmental and passenger-oriented improvements demanded by airline customers for the next quarter century. Entry into service is scheduled for 2013.

Launch customer, Lufthansa, a leading German airline, has signed a letter of interest (LOI) for up to 60 aircraft, including 30 options. The approximate list price of each aircraft is $46.7 million US. Additionally, discussions with a number of established airlines worldwide are progressing well.

Bombardier made the announcement today at the Farnborough International Airshow during a press conference at its CSeries pavilion hosted by Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.; Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace and Gary R. Scott, President, Bombardier Commercial Aircraft. Nico Buchholz, Senior Vice President, Corporate Fleet, Lufthansa attended the event as well as: David Moloney, Assistant Deputy Minister, Industry Canada; Raymond Bachand, Minister of Economic Development, Innovation and Export, Government of Québec; Right Honourable Shaun Woodward MP, Secretary of State for Northern Ireland; Arlene Foster MLA, Northern Ireland Minister for Enterprise, Trade and Investment; and Steve Finger, President, Pratt & Whitney. Also in attendance were representatives from the Shenyang Municipal Government, AVIC I/SACC, Rockwell Collins, Parker Hannifin Corporation, and Liebherr Aerospace Toulouse SAS.

“Today is a great day for Bombardier, our customers, our employees, our shareholders and our suppliers. I am proud to say that we have met our business plan objectives: a technologically advanced aircraft family, a strong pipeline of orders and repayable investments with governments and agreements with key suppliers. With the latest in system technologies and aerodynamics, the CSeries family of aircraft will revolutionize the economics and network strategies for airline operations in the 100- to 149-seat commercial market. It is another example of our commitment to designing and manufacturing innovative aircraft that will ensure our continued industry leadership,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.

“At Lufthansa, we are committed to a balance between commercial success, environment and business policies oriented toward sustainability,” said Nico Buchholz, Senior Vice President, Corporate Fleet, Lufthansa. “Our initial evaluations of the CSeries family of aircraft and discussions with Bombardier over the last few months have evolved and made us believe that the CSeries family of aircraft clearly meets our stringent requirements for sustainable fleet development, both in terms of environmental and commercial requirements, and flexibility for the future. We are proud to be a part of its launch.”

Mirabel and Saint-Laurent, Québec; Belfast, Northern Ireland selected
Bombardier also announced that it has selected Mirabel as the final assembly location for the CSeries aircraft program. The decision was made after a rigorous comparative analysis of potential final assembly sites based on an exhaustive list of key financial and strategic criteria.

“The final assembly facility will be located in Mirabel, in the greater Montréal area, thus ensuring Bombardier’s access to a skilled aerospace workforce and to an established aerospace education system,” said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. “Additionally, the manufacture of the aircraft’s aft fuselage and cockpit will take place at our Saint-Laurent facility, near our new product development centre, home to the growing CSeries team.”

Bombardier’s Belfast facility, a centre of excellence for composite manufacturing, will be home to the design and manufacture of theCSeries aircraft wings.

“Our Belfast operation has close to 40 years experience in advanced composites technologies, which have been successfully applied to regional and commercial jets, including the Bombardier CRJ NextGen jets. Our highly skilled experts continue to develop technologies to take on more advanced composite structures for advanced-design aircraft such as our CSeries aircraft,” added Mr. Hachey.

Repayable government investments
Bombardier has received and accepted offers of repayable investments from the governments of Canada and Québec as well as Northern Ireland and British Government Departments. The total repayable investments will cover approximately one-third of the expected R&D costs. Bombardier will also contribute about one-third, as will key suppliers.

“The CSeries aircraft program is a compelling business proposal for both Canada and Québec as well as Northern Ireland and British Government Departments. It involves, among other things, the development of new technology, creation of employment and further consolidation of Canada’s leadership in the aerospace industry. Our partners, including governments and suppliers, will benefit from the program’s success,” stated Mr. Hachey.

CSeries family of aircraft
In addition to unmatched passenger comfort, the competitive 110- to 130 -seat CSeries family of aircraft will benefit from the latest technological advancements, including: increased use of composites and aluminium lithium in structures; a next-generation engine – the Pratt & Whitney Geared TurbofanTM; and the very latest in system technologies, such as fly-by-wire, and fourth-generation aerodynamics.

“The CSeries family offers the greenest single-aisle aircraft in its class," said Gary Scott, President, Bombardier Commercial Aircraft. "These game-changing aircraft emit up to 20 per cent less CO2 and up to 50 per cent less NOx, fly four times quieter, and deliver dramatic energy savings – up to 20 per cent fuel burn advantage as well as up to 15 per cent improved cash operating costs versus current in-production aircraft of similar size. The CSeries aircraft will set a new benchmark in the industry, consuming as little as two liters of fuel per passenger per 100 kilometers in its more dense seating layouts*.”

The five-abreast CSeries aircraft family is specifically designed to meet the growing needs of the 100- to 149-seat commercial aircraft market category, estimated by Bombardier at 6,300 aircraft representing more than $250 billion US revenue over the next 20 years. Bombardier expects to be able to capture up to half of this market.

Key suppliers selected
Bombardier has selected the following suppliers for the CSeries aircraft family program:

C&D Zodiac for the design and production of the aircraft’s interior package, which includes the seats, interiors (including the linings, monuments, bins, galleys and lavatories), oxygen system, lighting system, insulation system, waste system and the water system;

Rockwell Collins as the supplier for the aircraft’s avionics system. Tailored specifically for the CSeries aircraft, its fully integrated flight deck capability will provide flexibility, high reliability and low life cycle costs without compromise on the aircraft’s performance;

Parker Hannifin Corporation, through its Aerospace Group, for the design and production of the CSeries airliner’s fully integrated fuel and hydraulics systems;

Liebherr-Aerospace Toulouse SAS for the design and production of the aircraft’s Air Management System, which includes the environmental control and cabin pressure control system.

All major suppliers will work with the CSeries team at Bombardier’s Aerospace Product Development Centre in Saint-Laurent, Québec starting in the fall of 2008 as part of the Joint Conceptual Definition Phase.

About Bombardier
A world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2008, were $17.5 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at http://www.bombardier.com.

Bombardier, CRJ NextGen and CSeries are registered trademarks of Bombardier Inc. or its subsidiaries.

TM Geared Turbofan is a registered trademark of United Technologies Corp. - Pratt & Whitney.

Note to Editors

1) A video extract of the press conference will be available after the event at:

http://www.thenewsmarket.com/bombardier

2) Live event broadcast will be available for TV stations at the following addresses:

North America:
Standards Conversion 625 PAL to 525 NTSC
Satellite: IS-9 Txp 24C Ch-B
Uplink: 6380.5 MHz V
Downlink: 4155.5 MHz H
Symbol Rate 5.632 MSym/s
FEC 3/4

Europe:
Arqiva Ref: 4-4732
Date:13/07/08
Time: 0900 - 1115 GMT

Satellite: Eut W1 Txp B4 Ch3
Uplink: 14397.5 MHz H
Downlink: 11097.5 MHz V
Symbol Rate 5.632 MSym/s
FEC 3/4

Images of the CSeries aircraft can be downloaded at http://www.bombardiercseries.com

*The CSeries aircraft is in the conceptual design phase and is subject to changes during the course of the design, manufacture and certification process.

For information
Marc Duchesne
Bombardier Aerospace
(514) 855-7989

marc.duchesne@aero.bombardier.com

http://www.aeroshow.com

[Guido]

About time! I'm glad to see that at least the final assembly will happen here in Canada. It'd be a shame to see it go elsewhere.