Sylvain Faust inside CSeries CS300 FTV7 before its first flight - 27 February 2015
"AIRBUS" New CSeries/A200 Orders? - Looks Like It!
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10:29 (14:29 UTC) – May 11, 2018 – Quebec, Canada
by Sylvain Faust
New CSeries Orders?
Well, not until the deal is done with Airbus.
First, as we all know, standing on the sidelines until the deal is done is JetBlue. JetBlue has done its work, came to Mirabel. Later Bombardier spent a week in New York at JetBlue. A CSeries aircraft did also for a few days. Bombardier did answer all JetBlue's questions. JetBlue is now waiting for Airbus to be in charge and to receive their offer.
As you must assume, AIRBUS sales team is ready for "day one" of their control of the CSeries. Expect their "official" first interaction with JetBlue looking into closing this deal quickly soon after.
Spirit Airline released a request for proposal for 100+ "narrow-body" ranging for 120 to 240 seats aircraft.
Spirit is an All Airbus fleet with about 120 aircraft composed of A319-100, A320-200, A320-ceo and neo (the first US airline flying this type), A321-200. To be noted the "neo" are with the Pratt & Whitney GTF engine PW1000G with its deliveries pushed in 2019. The CSeries GTF engine is model PW1500G and has not suffered the recent problems experienced with the PW1000G.
As you understand it makes perfect sense for Spirit to continue with Airbus when you factor in the impact of additional expenses by switching (or mixing) with/to another manufacturer i.e. Boeing, new crew and maintenance staff training, etc.
Spirit is using Boeing trying to get Airbus's best price (remember what United did with CSeries getting Boeing's offer?). Expect this one to be another priority for Airbus and its new CSeries as the aircraft fits a good part of this deal Spirit perfectly.
I learned a few days ago that a large American airline has contacted Airbus about the CSeries. The "AA" told Airbus to have their pencil ready and sharp on day one of the closing of the acquisition of the CSeries by Airbus. They would be looking for over 100 aircraft at first I'm told.
Here we have 3 US airlines (more?) that have requested a proposal to Airbus for CSeries.
Formal offers shall be made by Airbus after the transaction for the CSeries is done. By combining aircraft types it would permit Airbus a greater price negotiation flexibility on top of their current lower negotiated production cost for the CSeries vs when Bombardier was doing it all alone.
Let's get ready for the closing for the news coming at and after the closing of the transaction where Airbus is taking effective control of the CSeries aircraft program and factory.
Quebec CSeries Ownership
If the future is so bright and so profitable for the current CSeries owners, Bombardier Inc. and the Quebec Government (currently experiencing a huge political pressure regarding the high risk nature of their $1.3 billion equity investment in the CSeries by the provincial Liberal government), it would make perfect "business sense" for Bombardier shareholders to "Buy Back" Quebec at $1.3 billion since it is to be worth much higher soon later, as per Bombardier's management comments. Right? Right! Why letting Quebec to make all that capital gain? (thinking…)
I really don't think Quebec would say no to be bought back at the same price while keeping the 100 million B share issued options for the service. The strike price of those options is $2.41. At the time of this article the Bombardier B shares are trading at $4.15 meaning a profit of $174 million as of now for Quebec with those 100 million B share options.
We know what it means if Bombardier does not buy back Quebec quickly at the closing of the deal… meaning, Bombardier does not see buying back Quebec at $1.3 billion being a good deal… meaning it is worth "less"…Ah!?
Did you know, Mobile Alabama planned first few CSeries are all CS300?
Sylvain Faust, Fliegerfaust