ORDERS FLYING IN Bombardier gets a boost

Posted on 04/29/2016

Bombardier says Delta Air Lines Inc. has placed a firm order for 75 CS100 aircraft with options for an additional 50 CS100 aircraft in what would be the largest order for the C Series jets. The company says, based on the list price, the firm order is valued at approximately US$5.6 billion.

Bombardier has been at the centre of much political controversy in recent months and it is banking on the success of its CSeries passenger jet programme to revive its fortunes. The Montreal-based company has been offered a US$1 billion lifeline from the Quebec government for its C Series planes, though the first of two payments has been delayed due to unspecified issues including liquidity, according to Premier Philippe Couillard. 

The aerospace and transportation manufacturer has also asked Ottawa to match Quebec's funding, a request the federal government has said it is carefully studying since it was made in December. The governments of Quebec and Ontario, both provinces where Bombardier has an extensive presence, have also urged Ottawa to provide financial assistance. 

The CSeries programme is two years behind schedule and has incurred about US$2 billion in cost overruns. But Bombardier has signed deals in recent months to sell the planes, including a letter of intent in February where Air Canada would buy 45 CSeries jets, with an option to purchase up to 30 more of the aircraft. 

Swiss Airlines is scheduled to be the first carrier to put the plane into commercial service in July. Bombardier is also set to hold its annual general meeting today.