While the aircraft manufacturer Bombardier posted a loss of 117 million US dollars in the last quarter, the company announces that a “European customer” has signed a letter of intent for the possible purchase of 61 aircraft of the C Series.
Without specifying for the moment the identity of the buyer, Bombardier, which recently sold a majority stake in Airbus in its C Series program, announces that its “European customer” has signed a firm order for 31 aircraft, with options on 30 additional aircraft.
Based on the posted price, the firm order of 31 aircraft is valued at approximately US $ 2.4 billion and could rise to nearly $ 4.8 billion if the 30 options were exercised.
For Alain Bellemare, president of Bombardier, this sale is the beginning of a “commercial momentum” that will grow rapidly since the arrival of the European giant Airbus in the C Series program.
Recall that the US Department of Commerce has directly attacked Bombardier by imposing punitive taxes of nearly 300% on the C Series aircraft, following a complaint filed by Boeing denouncing the government subsidies that benefited Bombardier for the development of this new aircraft model.
Quebec in confidence
Questioned Thursday morning by the journalists on the situation of Bombardier, the Quebec Minister of the Economy, Dominique Anglade, considered that the partnership between Airbus and Bombardier was blessed and that it begins to bear fruits.
“Today there is good news that already reflects the consequences of the partnership that has been established. A European player who sends a letter of intent to the CSeries. Consequently, these planes would be built at Mirabel so that’s good news for Quebec workers, “said Minister Anglade.
I think we are in a much better position than where we were before, and I believe that the decision that has been made will certainly not only help the arrival of new orders in the long term, but also guarantee jobs.
Dominique Anglade, Minister of the Economy, Science and Innovation
Delays in delivery and losses in the third quarter
The announcement comes as Bombardier confirms that it will not be able to deliver the 30 aircraft it plans to build this year due to a delay in the delivery of Pratt & Whitney-built engines.
“In addition, some of the engines originally scheduled for production in the fourth quarter will serve the replacement engine needs of current C Series customers,” Bombardier said in a statement released Thursday morning.
As a result, Bombardier estimates that it will only be able to deliver approximately 20 or 22 C Series aircraft in the year ahead. The manufacturer had set a goal of delivering 30. This goal was however set before the agreement that provides for the takeover of the C Series by Airbus.
With respect to Bombardier’s finances, the Canadian automaker posted a net loss of US $ 117 million in the third quarter of 2017, an increase of $ 23 million over the level of losses reported in the same quarter. last year.
Bombardier posted consolidated revenues of $ 3.8 billion in the third quarter of 2017 and $ 11.5 billion in the first nine months of the year.