Order from Delta sees Bombardier pass 300 target for C Series

Bombardier’s CS100 program has been given a major boost with confirmation of a firm order for 75 aircraft from Atlanta-based Delta Air Lines. Though likely to be heavily discounted, the order at list price is valued at US$5.6bn. In addition, Delta also placed options on a further 50 CS100s, though it may choose to convert these to the larger CS300. The result of the order is that Bombardier has exceeded their target of 300 sales of the C Series aircraft before its entry into service.
Fred Cromer, President Bombardier Commercial Aircraft announced that this was “a watershed moment” for the C Series of aircraft, and added that “the order is a resounding endorsement of the CS100 aircraft performance.”
The order is a blow for Boeing, who had anticipated that Delta would purchase 20 used Embraer E190s which were being traded in by Air Canada as part of an earlier order. Earlier this year Air Canada had placed a firm order for 45 CS300s, so this order adds further credibility to the Bombardier CS family as this one comes with no accusations of political pressure being put on the airline to choose Bombardier. In addition, as a brand Delta ticks virtually every box as a C Series purchaser as it is one of the world’s largest international carriers, has a highly respected name in the industry, and is also a major US airline.
Deliveries are expected to commence in the spring of 2018 and will allow Delta to phase out the 50-seat aircraft which regional airlines are contracted to fly under its Delta Connection brand. The advantages of the CS100 is that it has a lower fuel burn rate per passenger, while also being able to offer two seat classes which will allow Delta to upsell to business class travelers.
According to incoming Delta CEO Ed Bastian, “As we reshape our fleet for the future, the innovative onboard experience of the C Series is a perfect complement for the top-notch service provided every day by Delta people. These new aircraft are a solid investment, allowing us to take advantage of superior operating economics, network flexibility and best-in-class fuel performance.”
The timing of the order from Delta could not be better as last month Bombardier were dealt a blow when the Quebec government delayed initiation of the US$1bn bailout through a 49.5% share acquisition in the C Series of aircraft. Two rafts of payments were due in April and June this year, but have been postponed, the first payment now due hopefully at the end of the second fiscal quarter. This order from Delta can do no harm while Bombardier still awaits a decision from Ottawa over a further US$1 billion cash injection after the company formally asked for federal help on December 11, 2015.