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Thursday, January 2, 2014

Bombardier Sees Billions in 3-Order Week

Chelsea Bryan

Photo courtesy of Bombardier.
Twenty-eight Global jets and 10 Challenger 605 aircraft will go to an unnamed Bombardier customer, the manufacturer said Tuesday, Dec. 31 in a statement. The order is the third in a series Bombardier announced this week and the price figure is an estimation based on list prices. The company will release further details with its next financial results release but it confirmed Thursday, Jan. 2 that the customers will remain undisclosed until further notice.
Bombardier also reported a Monday, Dec. 30 order for $259 million for 10 Challenger family aircraft as well as a $280 million separate order Dec. 24 deal for 10 Challengers, comprised of five Challenger 300s and five Challenger 605s.
This week’s sales echo the Bombardier deals at the 2013 Dubai Airshow in mid-November, where the manufacturer announced firm orders and commitments for 38 aircraft valued at $2.01 billion. The biggest order at the show was from Iraqi Airways, valued at $1.26 billion for five CS300s plus an additional 11 aircraft.
Bombardier even made a deal with Boeing, pairing the Challenger 605 with Boeing’s Maritime Surveillance Aircraft program. Boeing chose the platform business jet for Intelligence, Surveillance and Reconnaissance (ISR) maritime patrol, based on the aircraft’s payload capacity, range and speed. “It was really about taking the capability we put in a P-8 in a much larger airplane that has weapons capability, and then taking that capability and spinning it into a smaller platform that Boeing doesn’t build,” said Jeffrey Johnson, president of Boeing Middle East.
Though Bombardier’s CSeries model struggled to compete with Boeing and Airbus and Embraer led regional jet sales to U.S. carriers in 2013, Bombardier’s next set of financial results may show an increasing pace from the company’s 23 percent gains in 2013.
However, end-of-2013 business was not all good for the company, which announced also Tuesday, Dec. 31, in concert with Transport for London, that a contract awarded by London Underground in June 2011 would be re-let following discussions between the two entities. The contract, for the Circle, District, Hammersmith & City and Metropolitan lines, has been terminated and London Underground will look for a different manufacturer to complete the work. Bombardier is expected to receive between $140-$150 million dollars for the work it already completed for the contract.
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