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Thursday, July 17, 2008

Bombardier Launches CSeries

The long-awaited launch of Bombardier's 110- to 149-seat CSeries, in development since 2004, was formally announced at Farnborough after Lufthansa placed a Letter of Interest for 30 firm orders and 30 options. The five-abreast CSeries aircraft family is specifically designed to meet the growing needs of the 100- to 149-seat commercial aircraft market, estimated by Bombardier at 6,300 aircraft representing more than $250 billion revenue over the next 20 years. Bombardier expects to be able to capture up to half of this market.
Currently, there are 5,600 aircraft in service in that segment. Trung Ngo, vice president marketing and communications of the newly launched Bombardier Commercial Aircraft Company, indicated that, with no new offerings in the 100+-seat, single-aisle market, the CSeries will address the pent up demand in the market. Related Story
The company also said that it would not move assembly to the U.S., retaining Mirabel as the final assembly site supported by Bombardier’s Belfast facility for the development and manufacture of wings. The aft fuselage and cockpit will be done at Saint-Laurent while the center fuselage will be done by Shenyang Aircraft Company in China. The new bird is set for service introduction in 2013.
"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 percent less CO2 and up to 50 percent less NOx, fly four times quieter, and deliver dramatic energy savings - up to 20 percent fuel burn advantage as well as up to 15 percent 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."
Bombardier scrapped the original CSeries project in 2006 when airlines indicated they needed better performance to make the investment. The increased performance and the increase in fuel prices should make a difference in sales. Still, Bombardier earlier said it needed 80 to100 firm orders from three and four airlines before launching. Northwest, said Bombardier, was on the verge of acquiring the aircraft as a replacement for its DC 9s, but cancelled plans pending the completion of the Northwest/Delta merger.
It is counting on the 20 percent increased efficiency over competing aircraft to overcome the decade-long lead Embrear’s ERJ 190 will have before the first CSeries enters service. Embraer said the CSeries only has a three percent advantage over the ERJ 195. Embraer expects to continue improving its EJets in the next few years, but does not see significant changes or a new aircraft before the middle of the next decade. Embraer has delivered more than 300 E190s and has orders for more than 1,100 more.
The approximate list price for the aircraft is $46.7 million making the value of the Lufhansa order $2.8 billion should all options be exercised. At Farnborough the company said discussions with a number of established airlines worldwide are progressing well.
Bombardier will make a short-range, high-thrust variant of the 110- to 149-seat CSeries for customers who do not need the transcontinental range but who do have requirements for short field performance such as that required for London City Airport.
"Today is a great day for Bombardier, our customers, our employees, our shareholders and our suppliers,” said Pierre Beaudoin, president and CEO of Bombardier Inc. “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,"
Bombardier has received and accepted offers of repayable investments from the governments of Canada and Quebec 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.

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

Key suppliers selected:
• 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.

BBD, Shenyang Execute Contract on CSeries
Bombardier Aerospace signed a contract with the Shenyang Aircraft Corporation (SAC), a subsidiary of the state-owned aviation industrial entity China Aviation Industry Corporation (AVIC I), to supply the center fuselage on the newly launched Bombardier CSeries aircraft.
"AVIC I signed a strategic cooperation agreement with Bombardier in April 2007,” said Wang Yawei, vice president, Commercial Airplane, AVIC I. “AVIC I attaches great importance to and supports the CSeries project and is willing to participate in this project as a risk-sharing supplier.. AVIC I / SAC will take part in the design, manufacture, assembly and relevant testing as well as after-market support of four major work packages."
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