J.O. Posted February 17, 2016 Share Posted February 17, 2016 CTV News has just reported that AC has given Bombardier a letter of intent to purchSe up to 75 C Series aircraft. No link at this time. Link to comment Share on other sites More sharing options...
Kip Powick Posted February 17, 2016 Share Posted February 17, 2016 Hi Jeff.. If it is true then we can all assume there was a "back-room" deal with the Feds....Be interesting to see what AC gets now, or in the future beside, the aircraft, Link to comment Share on other sites More sharing options...
Johnboy Posted February 17, 2016 Share Posted February 17, 2016 Coming soon Bombardier will probably build the Dassault Rafale or Saab Gripon under licence. I support this potential move... http://news.nationalpost.com/news/canada/canadian-politics/john-ivison-ottawas-fighter-jet-dilemma-might-be-exactly-what-ailing-bombardier-needs Link to comment Share on other sites More sharing options...
mrlupin Posted February 17, 2016 Share Posted February 17, 2016 6 minutes ago, Johnboy said: Coming soon Bombardier will probably build the Dassault Rafale or Saab Gripon under licence. I support this potential move... http://news.nationalpost.com/news/canada/canadian-politics/john-ivison-ottawas-fighter-jet-dilemma-might-be-exactly-what-ailing-bombardier-needs Shouldn't this get its own thread? Link to comment Share on other sites More sharing options...
mrlupin Posted February 17, 2016 Share Posted February 17, 2016 Air Canada to Purchase Bombardier C Series as Part of its Fleet Renewal Program http://aircanada.mediaroom.com/index.php?s=43&item=984 Agreement includes 45 firm orders plus options to purchase an additional 30 aircraft MONTREAL, Feb. 17, 2016 /CNW Telbec/ - Air Canada today announced that it has entered into a Letter of Intent (LOI) with Bombardier Inc. for the acquisition of up to 75 Bombardier CS300 aircraft powered by Pratt & Whitney PurePower® PW1500G engines as part of its narrowbody fleet renewal plan. The LOI contemplates 45 firm orders plus options to purchase up to an additional 30 aircraft and includes substitution rights to CS100 aircraft in certain circumstances. Deliveries are scheduled to begin in late 2019 and extend to 2022. The first 25 aircraft on delivery will replace Air Canada's existing mainline fleet of Embraer E190 aircraft, with the incremental aircraft supporting Air Canada's hub and network growth, creating one of the world's youngest, most fuel efficient airline fleets. The C Series purchase is subject to completion of final documentation and satisfaction of certain other closing conditions precedent. "We are delighted to announce this important agreement with Bombardier for the purchase of CS300 aircraft as part of the ongoing modernization of Air Canada's narrowbody fleet," said Calin Rovinescu, President and CEO of Air Canada. "With its high fuel efficiency performance and greater seating capacity, the next generation technology of the C Series is very well suited for our current and future network strategy and will be an extremely efficient addition to our fleet. The renewal of our North American narrowbody fleet with more capable and efficient aircraft is a key element of our ongoing cost transformation program - plus the enhanced passenger cabin comfort provided by the CS300 will help us to retain Air Canada's competitive position as the only Four-Star international network carrier in North America. "The entry of the C Series into our fleet is expected to yield significant cost savings. We have estimated that the projected fuel burn and maintenance cost savings (on a per seat basis) of greater than 15 per cent should generate an estimated CASM reduction of approximately 10 per cent, when compared to the aircraft it will replace. "Air Canada has a long history of collaboration with Bombardier. Air Canada Express regional partners operate one of the largest fleets of Bombardier aircraft in the world with a mix of over 135 regional jets and turboprop aircraft by December 31, 2016. "We were one of the launch customers for the Canadair Regional Jet and today's announcement reflects our continued support for Canada's aerospace industry and for the new technologies the industry may develop. We fully expect the new technology of the C Series to efficiently meet the demanding needs of our current and future network strategy," concluded Mr. Rovinescu. The acquisition of the C Series aircraft represents a key element of Air Canada's narrowbody fleet renewal program and complements the acquisition of 61 Boeing 737 MAX aircraft announced in December 2013 to replace the larger end of the airline's mainline narrowbody fleet. The Boeing agreement provides for Boeing to purchase up to 20 of the 45 Embraer E190 aircraft in Air Canada's fleet and the first 25 C Series will replace the remaining E190s. Boeing 737 MAX deliveries are scheduled to begin in late 2017 and extend to 2021, while the C Series deliveries are scheduled to start in late 2019 and extend to 2022. About Bombardier C Series aircraft According to Bombardier, the C Series family of aircraft, representing the fusion of performance and technology, is a 100 per cent all-new design. By focusing on the 100- to 150-seat market segment, Bombardier has designed the C Series aircraft to deliver unparalleled economic advantage to operators and to open up new opportunities for single-aisle aircraft operations. By employing advanced materials, state-of-the-art technologies and advanced aerodynamics, combined with the groundbreaking Pratt & Whitney PurePower® PW1500G engine, the C Series aircraft is delivering a greater-than 10 per cent unit cost advantage compared to similarly-sized, re-engined aircraft. In addition to delivering best-in-class economics with the C Series aircraft, Bombardier has placed considerable emphasis on cabin design to ensure a superior passenger experience. The aircraft offers 19-inch-wide seats that set a new industry standard, large overhead bins that accommodate a carry-on bag for each passenger, and the largest windows in the single-aisle market. Together these attributes create a widebody feel that offers passengers an unparalleled level of comfort. All noise performance testing on the CS100 aircraft has been completed and data confirms it is the quietest in-production commercial jet in its class. The aircraft's noise performance and its outstanding short-field capability make it ideal for varied types of operations. The C Series aircraft's maximum range has also been confirmed to be up to 3,300 NM (6,112 km), some 350 NM (648 km) more than originally targeted. Link to comment Share on other sites More sharing options...
rudder Posted February 17, 2016 Share Posted February 17, 2016 I think that somebody previously suggested that AC was going to order the C-series....... Link to comment Share on other sites More sharing options...
Maverick Posted February 17, 2016 Share Posted February 17, 2016 13 minutes ago, rudder said: I think that somebody previously suggested that AC was going to order the C-series....... Aw shucks. You shouldn't have. Link to comment Share on other sites More sharing options...
rudder Posted February 17, 2016 Share Posted February 17, 2016 The interesting part is that Gregg Saretsky insisted that the C-series was the wrong aircraft for the Canadian carriers. Clearly Calin Rovinescu and Ben Smith disagree. Link to comment Share on other sites More sharing options...
dagger Posted February 17, 2016 Share Posted February 17, 2016 50 minutes ago, Kip Powick said: Hi Jeff.. If it is true then we can all assume there was a "back-room" deal with the Feds....Be interesting to see what AC gets now, or in the future beside, the aircraft, Undoubtedly. Remember the $20 million the Harper government wouldn't pay for air marshals? Maybe a little change to the ACPPA? Emirates stays at three frequencies until Dubai freezes over? Link to comment Share on other sites More sharing options...
conehead Posted February 17, 2016 Share Posted February 17, 2016 And, Bombardier announces massive job cuts... http://www.cbc.ca/news/business/bombardier-job-cuts-1.3451335 Link to comment Share on other sites More sharing options...
rudder Posted February 17, 2016 Share Posted February 17, 2016 Job cuts? BBD has no choice. It is borderline insolvent, particularly in the medium term. My guess is that support from the feds will be the next announcement. Everything is connected. Everything is planned. And everything has been in the works for some time. Link to comment Share on other sites More sharing options...
conehead Posted February 17, 2016 Share Posted February 17, 2016 BBC reporting that 1,000 jobs will be cut in the Northern Ireland plants... Link to comment Share on other sites More sharing options...
dagger Posted February 17, 2016 Share Posted February 17, 2016 The Bombardier deal is also making the Quebec lawsuit on Aveos disappear. Just announced. http://www.newswire.ca/news-releases/air-canada-c-series-airframe-heavy-maintenance-to-be-performed-in-quebec-569107481.html Link to comment Share on other sites More sharing options...
rudder Posted February 17, 2016 Share Posted February 17, 2016 Lots of moving pieces. More developments to come. Some seen. Some unseen. Imagine the demands that you can make when you are spending $3B+ of private capital to save a company and save a government from having to provide excessive amounts of taxpayer money to a non-crown corporation. Link to comment Share on other sites More sharing options...
thinair Posted February 17, 2016 Share Posted February 17, 2016 1 hour ago, dagger said: Undoubtedly. Remember the $20 million the Harper government wouldn't pay for air marshals? Maybe a little change to the ACPPA? Emirates stays at three frequencies until Dubai freezes over? 19 minutes ago, dagger said: The Bombardier deal is also making the Quebec lawsuit on Aveos disappear. Just announced. http://www.newswire.ca/news-releases/air-canada-c-series-airframe-heavy-maintenance-to-be-performed-in-quebec-569107481.html Ah yes the Liberals...er I mean Canada is back! Link to comment Share on other sites More sharing options...
dagger Posted February 17, 2016 Share Posted February 17, 2016 14 minutes ago, rudder said: Lots of moving pieces. More developments to come. Some seen. Some unseen. Imagine the demands that you can make when you are spending $3B+ of private capital to save a company and save a government from having to provide excessive amounts of taxpayer money to a non-crown corporation. I would imagine the government would prefer to improve the economics of the domestic industry to stimulate CSeries sales, than pour cash into BBD although there will likely be loans or other support. Link to comment Share on other sites More sharing options...
Critter Posted February 17, 2016 Share Posted February 17, 2016 Hopefully the bargaining chip wasn't the new duty regs. Link to comment Share on other sites More sharing options...
dagger Posted February 17, 2016 Share Posted February 17, 2016 1 hour ago, rudder said: The interesting part is that Gregg Saretsky insisted that the C-series was the wrong aircraft for the Canadian carriers. Clearly Calin Rovinescu and Ben Smith disagree. In fairness, I think he was referencing Westjet and its routes and product, not all carriers. My question now is whether the payoffs for the airlines (read AC) will include enough benefit to take out the E-175s, too, perhaps even bringing that flying into mainline. (Yes, it's not a concept under current circumstances, but if incentivized, AC could convert its CS300 options into CS100s for those routes.) Link to comment Share on other sites More sharing options...
dagger Posted February 17, 2016 Share Posted February 17, 2016 6 minutes ago, Critter said: Hopefully the bargaining chip wasn't the new duty regs. I think it's going to be more in the direct cash area, like the air marshals, maybe some action on Pearson, or the excise tax on fuel. Other airlines may get some benefit too as free riders, but I'm fairly certain that whatever the government does, it will help AC the most. Link to comment Share on other sites More sharing options...
dagger Posted February 17, 2016 Share Posted February 17, 2016 Globe and Mail article suggests AC will pay US$30m per CS300. Link to comment Share on other sites More sharing options...
rudder Posted February 17, 2016 Share Posted February 17, 2016 5 hours ago, dagger said: In fairness, I think he was referencing Westjet and its routes and product, not all carriers. My question now is whether the payoffs for the airlines (read AC) will include enough benefit to take out the E-175s, too, perhaps even bringing that flying into mainline. (Yes, it's not a concept under current circumstances, but if incentivized, AC could convert its CS300 options into CS100s for those routes.) Saretsky also weighed in on Bombardier’s ill-fated CSeries, which he said “wasn’t designed for the Canadian carriers.” “It’s too small,” Saretsky said of the 100- to 150-seat aircraft. “Both ourselves and Air Canada are buying bigger and bigger jets for domestic flights.” http://business.financialpost.com/news/transportation/westjet-airlines-ltd-seeks-to-slow-bombardier-q400-deliveries-as-alberta-economy-struggles Link to comment Share on other sites More sharing options...
Specs Posted February 17, 2016 Share Posted February 17, 2016 5 hours ago, dagger said: In fairness, I think he was referencing Westjet and its routes and product, not all carriers. My question now is whether the payoffs for the airlines (read AC) will include enough benefit to take out the E-175s, too, perhaps even bringing that flying into mainline. (Yes, it's not a concept under current circumstances, but if incentivized, AC could convert its CS300 options into CS100s for those routes.) You have to wonder if Saretski's comment was made with or without the backdrop of a depressed domestic economy for the foreseeable future. Link to comment Share on other sites More sharing options...
AMEfirst Posted February 17, 2016 Share Posted February 17, 2016 The most important part of the deal, IMO. http://www.cbc.ca/news/business/bomb...cuts-1.3451335The deal does, however, come with a pledge from Air Canada to do all heavy maintenance work related to the new planes at a facility in Quebec for at least 20 years. And as part of the agreement, the government of Quebec has agreed to drop a lawsuit against Air Canada that dates back to when the airline shut down its maintenance subsidiary known as Aveos, cutting 2,600 jobs in the process.Garneau added that Ottawa will now seek to clarify the law, known as the Air Canada Public Participation Act , which impacts similar litigations that may happen in the future. Link to comment Share on other sites More sharing options...
dagger Posted February 17, 2016 Share Posted February 17, 2016 1 hour ago, AMEfirst said: The most important part of the deal, IMO. http://www.cbc.ca/news/business/bomb...cuts-1.3451335The deal does, however, come with a pledge from Air Canada to do all heavy maintenance work related to the new planes at a facility in Quebec for at least 20 years. And as part of the agreement, the government of Quebec has agreed to drop a lawsuit against Air Canada that dates back to when the airline shut down its maintenance subsidiary known as Aveos, cutting 2,600 jobs in the process.Garneau added that Ottawa will now seek to clarify the law, known as the Air Canada Public Participation Act , which impacts similar litigations that may happen in the future. Not the most important - price is the most important, and generating savings to pay the acquisition price - but this works well in a world where the C$ has plunged and may stay well below par for many years. If AC could move some of its contract work to Canada, it probably would, and probably will in time. Link to comment Share on other sites More sharing options...
rudder Posted February 17, 2016 Share Posted February 17, 2016 First C check on a CS300 for AC will not happen until 2020 or 2021....... lots of time to identify prospective MRO providers and tender an RFP. Link to comment Share on other sites More sharing options...
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