Bombardier-Airbus deal slows down C-Series orders

The head of commercial sales at the Canadian plane and train manufacturer Bombardier has admitted to there being a “bit of a pause” in orders being placed for the C-Series jet while waiting for completion of the recent partnership deal with Airbus.
It was in October the deal for Bombardier to sell a majority stake in the C-Series program to Airbus was struck, but until regulatory approval has been obtained the two companies are unable to coordinate sales campaigns for the 110-130-seat jets.
Colin Bole, Bombardier Head of Commercial Sales, said the long-term sales prospects for the C Series had improved thanks to the Airbus deal, but it may be the cause of some temporary delays in order decisions.
“I won’t deny it does create probably a bit of a pause in the meantime,” he told Reuters at the Singapore Airshow, adding: “Most airlines at least are trying to understand what this means in the long run.”
The deal with Airbus came about as a result of the potential 219% levy the U.S. Commerce Department intended to impose on the sales of the Canadian jet to American companies, particularly Delta Air Lines who had placed an order for 70 of the C-Series jets at a (dumping) price many believed was below production cost.
Boeing had launched a dispute with the U.S. Commerce Department, but this was dismissed by the U.S. International Trade Commission (ITC) as, despite Boeing’s protestations, no identifiable harm could be identified as the U.S. giant does not produce any planes of the same size.
Additionally, in a bid to get around the importation tariff, Bombardier decided to assemble the Delta-ordered jets in Alabama, and this will continue despite the ITC ruling.
It is worth noting that while many eyes are on the Bombardier-Airbus tie up, Bombardier’s principal rival in the 90-130-seat single-aisle commercial jet market, Brazil’s Embraer, is also in negotiations with Boeing to strengthen its market share.