Category Archives: Bombardier

Bombardier and Conair announce purchase agreement for six Q400 aircraft for conversion into Q400 multirole airtankers

Bombardier has issued this statement:

  • The first six aircraft to be supplied to Conair under its airtanker teaming agreement with Bombardier
  • Aircraft will be modified to incorporate Conair’s proven Retardant Delivery System and interiors to accommodate passenger, cargo, combi, and medivac requirements
  • Enhanced Q400 Multirole aircraft will join Bombardier’s fleet of over 1,000 specialized aircraft operating around the world

Bombardier Specialized Aircraft has announced that Conair Group Inc., the world’s leading provider of fixed wing aerial firefighting aircraft, has purchased six Q400 aircraft. Based on the current list price, the firm order is valued at approximately $206 million US.

Conair operates the world’s largest fleet of privately owned fixed wing airtankers and supplies specialty aerial firefighting aircraft and products worldwide. These six Q400 production aircraft will be modified to incorporate an enhanced version of Conair’s proprietary Retardant Delivery System. In the Q400 Multirole configuration, the retardant tank can be removed and reinstalled in the field in a few hours. This enables the aircraft to efficiently perform additional roles in emergency response, passenger and cargo transport, medivac, and coastal patrol without compromising its exceptional firefighting capabilities.

“The enhanced Q400 Multirole has the most advanced airtanker capabilities of any aircraft in service today,” said Barry Marsden, Chairman & CEO, Conair. “The Q400 Multirole’s versatility delivers optimal value by accommodating year-round service in passenger, cargo, combi transport, medivac, emergency response, surveillance and patrol without compromising state-of-the-art airtanker capabilities.”

“The Q400 Multirole delivers the efficiency, reliability, reduced downtime and low operating costs of the Q400 in a multi-role application. Combining turboprop economics and jet-like performance, the Q400 Multirole delivers exceptional value,” said Stéphane Leroy, Vice President, Bombardier Specialized Aircraft. “The Q400 Multirole is the ideal aircraft to meet Conair’s needs, offering a unique ability to serve diverse and challenging environments.”

The Q400 Multirole offers the ultimate in flexibility and is able to easily switch between firefighting, cargo and passenger transport, and medivac roles. The Q400 Multirole can operate out of unprepared strips, conduct steep approaches when landing, short take off, and deliver an impressive cruise speed of 667 km/hr.

Today, Bombardier has over 1,000 specialized aircraft in service around the world. For over 50 years, governments have selected Bombardier aircraft to perform military surveillance, intelligence and utility activities. Among the advantages of using off-the-shelf platforms for special missions are a reduced development time and faster time to market, civil certification, reliability, ease of maintenance and an international customer support network. Governments also benefit from Bombardier’s engineering and flight test experience, and its well-established relationships with top industry mission integrators.

About Conair

Conair operates the largest privately owned fleet of fixed wing firefighting aircraft in the world.   Founded in Canada 49 years ago, Conair’s operations now extend to Canada, the United States of America, Europe, and Australia. Conair has developed a number of proprietary aerial firefighting products and Supplemental Type Certificates (STC) for modification of aircraft for aerial firefighting.

Originally called Conair Aviation Ltd., the company was formed in 1969 as a subsidiary of Skyway Air Services of Langley, British Columbia.

Current CEO, Barry Marsden, was one of the founding members of the company that began with 35 employees and 19 aircraft.

While initially doubling as both a budworm spraying and aerial fire fighting business, the next two decades saw significant expansion of Conair’s fleet, capabilities and services in the aerial fire fighting sector.

Today, with more than 250 employees and 65 aircraft, Conair is a world leader in fixed wing aerial fire management services and products.

 

All images by Conair.

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Boeing’s statement on the ITC Hearing concerning “Bombardier’s Harm to U.S. Industry”

The Boeing Company released the following statement regarding the public hearing at the International Trade Commission (ITC) on Bombardier’s illegal business practices with its C Series aircraft and how those practices have harmed U.S. domestic industry.

“Boeing brought this case seeking enforcement of U.S. trade law, which mirrors the widely-accepted rules of international trade adopted by most WTO member nations, including Canada. The resulting Department of Commerce and ITC investigations are part of a longstanding, transparent, and rigorous fact-based process for resolving precisely these sorts of commercial trade disputes. Today’s hearing was simply the next step in that process, as the ITC considered extensive evidence that underscored the harm Bombardier’s unlawful actions have caused U.S. industry.

“These investigations have already established beyond question that Bombardier has taken billions of dollars in illegal government subsidies to prop up its C Series program. The C Series would not even exist at this point but for those subsidies. The investigations have also left no doubt Bombardier used these government funds to dump aircraft into the U.S. market at absurdly low prices, millions below their cost of production and millions below the price of the same aircraft in Canada. Bombardier’s conduct is flatly inconsistent with U.S. trade law, and it has caused severe harm to Boeing, its employees, and its suppliers.

“Boeing welcomes competition, but it must be competition on a level playing field. Bombardier can sell their aircraft anywhere in the world, so long as they follow the law and comply with the trade rules we have all agreed to.”

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.

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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