Tag Archives: Bombardier

Bombardier and CemAir sign order for two new Q400 aircraft

Bombardier Commercial Aircraft has announced that CemAir (PTY) Ltd of South Africa has concluded a firm purchase agreement for two new Q400 turboprops, and has also signed the lease of a used Q400 aircraft that was delivered this month, paving the way for the new aircraft to be delivered afterwards. The letter of Intent (LOI) from CemAir, which was signed on June 21 at the 2017 Paris Air Show, has now been converted into a firm order.

Based on the list price of the Q400 aircraft, the firm order is valued at approximately $66 million US.

With these Q400 aircraft, CemAir would increase its current fleet of Bombardier aircraft to 17 – including five Q Series turboprops and 12 CRJ Series aircraft. CemAir recently added a used CRJ900 aircraft to its fleet, the first in South Africa.

Image: Bombardier.

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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.

Philippines orders seven additional Bombardier Q400s

Bombardier Commercial Aircraft has announced from the International Paris Air Show, that it has signed an agreement with Philippine Airlines, Inc. for the exercise of its seven Q400 aircraft purchase rights. This latest rights exercise brings Philippine Airlines’ total firm order to twelve Q400 aircraft. The original order for five firm Q400 with purchase rights for an additional seven was previously announced on December 8, 2016.

The flag carrier of the Philippines is expected to take delivery of the world’s first dual-class, 86-seat Q400 aircraft in July 2017.

Including this latest order, Bombardier has now recorded a total of 585 Q400 aircraft on firm order.

Image: Bombardier.

FlyViking to start operations on March 27

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FlyViking has announced it will start up flights from Tromsø‚ Hammerfest and Bodø on March 27‚ 2017.

From April 18, 2017 the new airline will start up flights from Svolvær.

This comes after FlyViking AS received its Air Operators Certificate – AOC.

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FlyViking’s goal is to provide scheduled operations on regional airports in Norway that can only be handled by regional aircraft (aircraft up to approximately 78 seats).

The initial fleet will be build on the Bombardier DHC-8-100 (DHC-8-101 Dash 8 LN-FVA, msn 017).

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FlyViking is owned by Viking Air Norway AS, that in turn are owned by a number of shareholders with Ola OK Giaever jr, the founder and Chairman of the Board, – as the largest investor.

Our main operational adress and base are located in Tromsø, Flyplassveien 31.

All images by FlyViking.

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Bombardier delivers the first CRJ200 Special Freighter to the IFL Group

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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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Tanzania orders two Bombardier CS300s and one Q400 for Air Tanzania

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Bombardier Commercial Aircraft have announced the United Republic of Tanzania represented by the Tanzanian Government Flight Agency (TGFA) has signed firm purchase agreements for two CS300 jetliners and one Q400 turboprop aircraft. The aircraft will be leased to and operated by Air Tanzania (The Wings of the Kilimanjaro) based in Dar es Salaam.

Like the two Q400 turboprop aircraft delivered to the TGFA for lease and operation by Air Tanzania in September 2016, the third announced this time will have an all-economy, 76-seat interior with two lavatories. The two CS300 airliners will be configured in a dual-class layout, and will be equipped with WiFi internet and in-flight entertainment.

Image: Bombardier.

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