Important Aspects to Bombardier’s CSeries Order News - Airinsight
This order is not from an existing customer
Click Like to Follow Fliegerfaust Facebook page to get the News ASAP / Share to share this post now.
November 2, 2017 by Addison Schonland - Airinsight
Today Bombardier announced a new C Series letter of intent for an order as part of its quarterly results. Market speculation immediately spiked. This has been an event everyone has been waiting for, especially after the announced alliance with Airbus.
Here is what we know: the customer is EU-based. That means deliveries will be from the Mirabel factory and is beyond the reach of the US Department of Commerce 300% tariff.
Here is what we have been able to discern. This order is not from an existing customer. This is a critical element because it means there is fresh interest in the program. While it would be wonderful for Bombardier if Lufthansa were to buy more aircraft, if Bombardier were to have a choice, a new customer is far more valuable. What this really means is that another customer has undertaken due diligence and found the C Series to be the best option for its fleet needs.
We have been able to discern that this order is for a combination of models. This is also very important as it means both the 110 seat CS100 and 135 seat CS300 continue to attract interest. Interest in both models is positive because it reflects momentum for the program. Critics have noted, with cause, that the C Series program has lacked momentum since the major orders last year. With recent activity, momentum has been regained.
A key question on everyone's mind is how the Airbus deal with Bombardier impacted this customer's decision? It likely had a supportive role. However, ...