Category Archives: Bombardier

Bombardier signs Letter of Intent with EgyptAir for up to 24 CS300 aircraft

Bombardier Commercial Aircraft announced on November 14, 2017, from the Dubai Airshow, that it has signed a letter of intent (LOI) for up to 24 CS300 aircraft with EgyptAir Holding Company, of Cairo. This includes 12 CS300 aircraft with purchase rights for an additional 12 aircraft.

‎Based on the list price of the CS300 airliner, a firm-order contract would be valued at approximately $1.1 billion US. Should EgyptAir also exercise the 12 purchase rights for CS300 aircraft, the contract value would increase to nearly $2.2 billion US.‎

Photo: Bombardier.

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Airbus and Bombardier sign their new C Series partnership agreement

Bombardier CSeries CS100 (BD-500-1A10) C-FFCO (msn 50006) ZRH (Rolf Wallner). Image: 932101.

Airbus SE and Bombardier Inc. are to become partners on the C Series aircraft program. A corresponding agreement was signed on October 19, 2017.  The agreement brings together Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family, positioning both partners to fully unlock the value of the C Series platform and create significant new value for customers, suppliers, employees and shareholders.

Under the agreement, Airbus will provide procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (CSALP), the entity that manufactures and sells the C Series. At closing, Airbus will acquire a 50.01% interest in CSALP. Bombardier and Investissement Québec (IQ) will own approximately 31% and 19% respectively.

CSALP’s headquarters and primary assembly line and related functions will remain in Québec, with the support of Airbus’ global reach and scale. Airbus’ global industrial footprint will expand with the Final Assembly Line in Canada and additional C Series production at Airbus’ manufacturing site in Alabama, U.S. This strengthening of the programme and global cooperation will have positive effects on Québec and Canadian aerospace operations.

The single aisle market is a key growth driver, representing 70% of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the C Series is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats). The world class sales, marketing and support networks that Airbus brings into the venture are expected to strengthen and accelerate the C Series’ commercial momentum.  Additionally, Airbus’ supply chain expertise is expected to generate significant C Series production cost savings.

Airbus is strongly committed to Canada and its aerospace sector with Canadian suppliers extending their access to Airbus’ global supply chain. This new C Series partnership is set to secure jobs in Canada for many years to come.

Ownership Structure and Agreement Highlights

The C Series programme is operated by CSALP in respect of which Bombardier and IQ respectively hold approximately a 62% and a 38% interest.  The Investment Agreement contemplates Airbus acquiring a 50.01% interest in CSALP. Airbus will enter into commercial agreements relating to (i) sales and marketing support services for the C Series, (ii) management of procurement, which will include leading negotiations to improve CSALP level supplier agreements, and (iii) customer support. At closing, there will be no cash contribution by any of the partners, nor will CSALP assume any financial debt. It also contemplates that Bombardier will continue with its current funding plan of CSALP and will fund, if required, the cash shortfalls of CSALP during the first year following the closing up to a maximum amount of US$350 million, and during the second and third years following the closing up to a maximum aggregate amount of US$350 million over both years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%, with any excess shortfall during such periods to be shared proportionately amongst Class A shareholders.

Airbus will benefit from call rights in respect of all of Bombardier’s interest in CSALP at fair market value, with the amount for non-voting participating shares used by Bombardier capped at the invested amount plus accrued but unpaid dividends, including a call right exercisable no earlier than 7.5 years following the closing, except in the event of certain changes in the control of Bombardier, in which case the right is accelerated. Bombardier will benefit from a corresponding put right whereby it could require that Airbus acquire its interest at fair market value after the expiry of the same period. IQ’s interest is redeemable at fair market value by CSALP, under certain conditions, starting in 2023. IQ will also benefit from tag along rights in connection with a sale by Bombardier of its interest in the partnership.

The Board of Directors of CSALP will initially consist of seven directors, four of whom will be proposed by Airbus, two of whom will be proposed by Bombardier, and one of whom will be proposed by IQ.  Airbus will be entitled to name the Chairman of CSALP.

Subject to obtaining the required approval from the Toronto Stock Exchange, the transaction also provides for the issuance to Airbus, upon closing, of warrants exercisable to acquire up to 100,000,000 Class B Shares (subordinate voting) of Bombardier (representing approximately 5% of the aggregate issued and outstanding Class A Shares (multiple voting) and Class B Shares of Bombardier on a fully-diluted basis, and approximately 5% of the aggregate issued and outstanding Class A Shares and Class B Shares on a non-diluted basis), at an exercise price per share equal to the US$ equivalent of C$2.29, which represents the volume-weighted average price of the Class B Shares over the five trading days ending Friday, 13 October 2017. The warrants will have a five-year term from the date of issue, will not be listed and will provide for market standard adjustment provisions, including in the event of corporate changes, stock splits, non-cash dividends, distributions of rights, options or warrants to all or substantially all shareholders or consolidations.

The issuance of the warrants and their terms were negotiated between Bombardier and Airbus at arm’s length and will not materially affect control of Bombardier. Security holder approval will be required under Toronto Stock Exchange rules due to the fact that the warrants will be issued later than 45 days from the date upon which the exercise price was established. Such approval is expected to be obtained by way of written consent of shareholders holding more than 50% of the voting rights attached to all of Bombardier’s issued and outstanding shares.

The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as well as the Cabinet of the Government of Québec. The transaction remains subject to regulatory approvals, as well as other conditions usual in this type of transaction. There are no guarantees that the transaction will be completed and that the conditions to which it is subject would be met. Completion of the transaction is currently expected for the second half of 2018.

Copyright Photo:  Bombardier CSeries CS100 (BD-500-1A10) C-FFCO (msn 50006) ZRH (Rolf Wallner). Image: 932101.

Bombardier delivers the first CRJ200 Special Freighter to the IFL Group

ifl-group-crj200-bombardierlr

Bombardier Commercial Aircraft on December 21, 2016 announced it has delivered the first CRJ200 Special Freighter (CRJ200SF) aircraft to launch operator Gulf & Caribbean Cargo, Inc. dba IFL Group (IFL Group) of Waterford, Michigan.

The CRJ100SF/CRJ200SF jets are converted from the passenger version of the aircraft by Aeronautical Engineers, Inc. (AEI) of Miami who is a Bombardier-licensed Third Party Supplemental Type Certificate (STC) provider. The freighter design includes a large 94 in. x 77 in. (238.7 cm x 195.6 cm) cargo door, hold up to 14,840 lbs. (6,731 kg) of payload on the main deck and offer eight 61.5” X 88” pallet positions for containerization.

Photo: Bombardier.

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Bombardier CS100 is awarded a type certificate by Transport Canada

Bombardier CS100 C-FFCO (50006)(Grd) YMX (Bombardier)(LRW)

Bombardier Commercial Aircraft (Montreal) announced yesterday (December 18) that its all-new CS100 aircraft received its Transport Canada Type Certification following a comprehensive and rigorous testing program, which included more than 3,000 flight test hours, the validation of thousands of test results and the authentication of extensive design and performance data. Obtaining the Type Certificate for the CS100 aircraft paves the way for the delivery and entry into service of the CS100 aircraft with first operator SWISS in Q2 2016.

Bombardier logo

Design Approval Designees (DADs), engineers authorized to act on behalf of the Minister of Transport to approve aeronautical design and make findings of compliance, worked closely with Transport Canada over the last five years planning, testing, and reviewing thousands of technical drawings and documents that ultimately define the C Series aircraft and allow it to be built against this design definition. Once Bombardier demonstrated that the C Series aircraft design fully complied with the safety requirements mandated by Transport Canada, the aircraft was issued its Type Certificate.

Bombardier’s CS300 aircraft, the larger model, is on track to obtain its Type Certificate within the next six months as planned. Bombardier will continue to work with Transport Canada to validate the CS100 aircraft’s training syllabus.

The CS100 and CS300 aircraft have over 95 per cent parts commonality, as well as the same type rating. The groundbreaking Pratt & Whitney PurePower® PW1500G engine, combined with advanced aerodynamics, delivers reduced fuel burn, noise and emissions, increasing the aircraft’s environmental and social compatibility.

Bombardier has booked orders and commitments for 603 C Series aircraft, which include firm orders for 243.

Photo: Bombardier. The pictured CS100 (BD-500-1A10) C-FFCO (msn 50006) is one of the test aircraft.

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Video: Bombardier CS100, CRJ1000 and Q400 arrive at the Paris Air Show

Video from Bombardier: CS100 Aircraft in Swiss livery, HOP! Air France’s CRJ1000 and Q400 aircraft arrive at the International Paris Air Show.

Other new videos from Bombardier:

It is that time of the year again: The 2015 Paris Air Show at Le Bourget Airport is here

Paris Air Show 2015 logo

Yes, it’s that time of year again. The International Paris Air Show returns. 106 years old and 50 shows on, number 51 is here and it promises to be another great show.

For those who don’t know, the Paris Air Show is a bi-annual event, with the Farnborough Air Show filling in the gap year, in which aircraft manufacturers from around the world, both civil and military, showcase their latest and greatest models to potential buyers and the viewing public; that is the ones that can afford to go. But don’t worry, if you can’t attend, World Airline News will be giving you day to day coverage of the new aircraft orders that are due to come in next week.

Here is a preview of what is to come.

Airbus logo (large)
We’ll start with the “home team”. Airbus comes to the show with a line up of commercial aircraft. With its A319, A320, A380 and A350-900 XWB all being on the static display, the Toulouse-based manufacturer will also fly its long-haul aircraft, surprisingly all in the grey and burgundy livery of Qatar Airways (below).

Above Copyright Photo: Bernhard Ross/AirlinersGallery.com. Qatar Airways Airbus A350-941 A7-ALA (msn 006) is seen at Frankfurt, its first destination from Doha.

The A319 and A320 aircraft are not part of Airbus’ official roster, with both showcasing Qatar’s all business class cabin and the A320 displaying the Doha-based airline’s newly upgraded cabins including its 180-degree lie flat-beds, new 15.4 inch smart monitors and touch-screen remote control handsets as well as power, USB ports and connectivity for smart devices in Business Class.

Last time around, Airbus secured $68.7 billion worth of business for a total of 466 aircraft, which shows the resilience of the commercial aviation industry. The deals comprise Memorandum of Understanding agreements (MOUs) for 225 aircraft worth $29.4 billion and firm purchase orders for 241 aircraft worth $39.3 billion. The previous time around, the A350 was a brand new airliner and only made a cameo visit, flying briefly over Le Bourget Airport as a treat to the public. This time it’s goes into next week with three of new type in service with Qatar Airways and others soon to be delivered to Vietnam Airlines, Finnair and TAM respectively.

Video above: Airbus. Before the show, Airbus is featuring the first Airbus A330 delivery to Tunisair. More videos are expected next week.

For the A380, it may be “make or break” time. With orders for the Super Jumbo slowing down (none in the past year) and also with the delaying and deferring of delivery dates by some customers, Airbus will be hoping to attract new orders for their double-decker giant or more from their established customers. Airbus is reported to be looking at a revamp of the aircraft towards the end of this year. Could an A380neo or sharklet equipped variant be in the cards for next week? Seems a bit desperate in my opinion. The aircraft isn’t 10 years old yet. It took the rest of Airbus’ in service aircraft 27 years (A320) and 24 years (A330 – expected neo introduction) to introduce a major upgrade to its DNA. Either the A380 takes off again or it doesn’t (pun intended).

Airbus will also be looking to get some firm orders for it’s newest project, the A330neo. Since being launched at the Farnborough Air Show last year the new wide-body only has seven customers in Avolon, AirAsia X, Delta Air Lines, CIT Group, ALC, Hawaiian Airlines and TransAsia Airways. Other guaranteed orders will be for the Airbus’ A320 and A320neo types, with the latter due to have its first delivery by October of this year with Qatar Airways.

Boeing logo (medium)

Above Copyright Photo: Royal S. King/AirlinersGallery.com. Boeing 787-9 Dreamliner VN-A861 (msn 35151) arrives back at Paine Field near Everett, Washington in Vietnam Airlines colors after a test flight.

The other side of the aviation coin, U.S. manufacturer Boeing comes to the show with three of it’s aircraft: The Boeing 777-300 ER (in China Airlines livery) and both variants of the 787 Dreamliner. The 787-9 makes it’s Paris debut in the colors of Vietnam Airlines (above), with the aircraft set to join the carrier soon after it leaves the show.

China Airlines 777-300 N5017Q (B-18002)(95)(Ldg) LBG (Boeing)(LRW)

Photo Above: Boeing. Boeing 777-36N ER N5017Q (msn 43980) lands at Le Bourget Airport today. It will eventually become B-18002 for China Airlines.

As previously reported, the aircraft manufacturer released this stunning practice video (above).

The other two aircraft will be in the livery of China Airlines and guess whose colors the other is wearing? If you didn’t guess Qatar Airways, you need to keep up with the latest trends. Qatar Airways is really stealing the show this time around.

Boeing recently released figures predicting a demand for 38,050 new airplanes over the next 20 years, an increase of 3.5 percent from last year’s forecast. As we previously reported, Boeing released its annual Current Market Outlook (CMO) on June 11, estimating the total value of those new airplanes at $5.6 trillion.

Do the manufacturers stack up potential orders and MOUs prior to the show to release them during the show? The “numbers game” is important to the manufacturers.

Last time around in Paris, Boeing fell to second place with firm and provisional orders for 442 aircraft valued at more than $66 billion, narrowly behind Airbus. That was the year Boeing launched the 787-10 and 777X projects and will be hoping to rack up huge orders for their new long-haulers; with the stretched Dreamliner only having seven customers in ALC, Singapore Airlines, United Airlines, International Airlines Group/British Airways, Etihad Airways, ANA-All Nippon Airways and GECAS.

Qatar 777X (Boeing)(LR)

Image above: Boeing. Qatar Airways also has placed an order for the new 777X.

The 777X is doing just as well with only six customers in Lufthansa, Etihad, Emirates, Cathay Pacific, Qatar Airways and ANA.

Boeing’s narrow-bodies are another miss for the show but you can guarantee an order for the 737NG and 737 MAX will be flying in (again, pun intended) and most likely carrying Boeing’s orders.

Another big miss for the show is the Boeing 747-8. The type is in the same situation as the A380, with orders slowing down and production most likely set to slow down once more from the current 1.5 aircraft per month. It’s quite surprising the manufacturer isn’t trying to advertise their “Sky Queen” to the best of their ability.

Bombardier logo
The eye catchers of the show are, without a doubt, Bombardier. Trying to steal Qatar Airways’ thunder by bringing along their CRJ1000 variant for the third show running, the Q400 NextGen and both of it’s CSeries family: the CS100 and the CS300, are both making their Farnborough debuts and are being included in the flying display.

Video above: Bombardier. The first CS100 in Swiss livery heads to Paris.

The first delivery of the CSeries Family will be to Swiss International Air Lines. The first copy is due to happen next year, and the CS100 will pay a visit to Zurich shortly after the show as a sample of what’s to come for the Lufthansa subsidiary. The CS300 will also visit Bombardier’s Belfast facility on June 19 where Bombardier’s employees and partners eagerly await the arrival of the first CS300 aircraft. It will mark the first time the CSeries aircraft and its Belfast-produced wing will fly on site. Last time around, Le Bourget Airport wasn’t a happy hunting ground for the Canadians, with the CSeries failing to capture a single aircraft order, the CRJ only capturing one order from Arik Air, and the Q400 only securing orders from Alaska Airlines (Horizon Air) and Arik Air. Bombardier will hope for a major improvement  and for this year to be more like Farnborough of last year, where a total of 74 orders were captured.

Video above: The Bombardier CS300 ferries to Le Bourget Airport.

Video above: The Q400 in Falcon Aviation livery heads to Paris.

Video above: The CRJ manufacturing at the Montreal Mirabel plant.

The rest of the major players: ATR, Embraer and Sukhoi, will display one aircraft each. With the Brazilians displaying their ERJ 135, the French-Italians showing off their ATR 72-600 in the colors of Air New Zealand Link, and the Russians exhibiting the Superjet 100 in the colors of Interjet, marking the second anniversary of the first aircraft being delivered to the airline.

ATR logo

For ATR it’s more of the same, marketing their ATR 42 and 72 products. Le Bourget 2013 went down as the best show in ATR’s history, with the turboprop manufacturer announcing orders for 173 planes, including 83 firm orders, with the total value of the contracts exceeding $4.1billion; creating a new record for them. Unless they’re planning a shock reveal of the ATR 42/72-700/800/900, it will be business as usual.

Video above: The building of Lion Group’s 50th ATR 72-600.

Embraer logo-1

For Embraer they will hope 2015 is just as good for them as Paris 2013 was. Two years ago, the E-Jets E2 was officially launched and they were the standout performers of the show, taking Day 1 by storm with the E2 dominating the orders when they announced the sale of over 300 customers, with the majority belonging to SkyWest Airlines and ILFC, and the rest going to unnamed customers around the world. For them, it is a case of gaining more orders for the E2 and maybe current generation of E-Jets.

 

Video above: Embraer. Embraer E2 – The Power of 2.

Sukhoi displayed this Superjet 100 at the Paris Air Show.  Copyright Photo: Gerd Beilfuss.

Sukhoi displayed this Superjet 100 at the previous Paris Air Show. Copyright Photo: Gerd Beilfuss.

Sukhoi logo

For Sukhoi, it’s the same situation. 2013 only got the SuperJet one order from Ilyushin Finance, with two of those aircraft going to VLM at some point next year. They will hope to go one better than the big zero they got last year at Farnborough.

The non-flying aircraft of the show: the Irkut MC-21 and the COMAC C919, may bring in a few orders at the show but only time will tell.

The Financial Times told us not to expect much from this year’s aviation event; but don’t let that deter you from keeping up to date on proceedings at Le Bourget Airport. We’ll be watching in anticipation and ready to update you on anything and everything. Nous vous verrons la semaine prochaine.

Assistant Editor Oliver Wilcock reporting from Manchester.

Video below: Boeing. Boeing is celebrating its historic relationship with the United Kingdom prior to the show: