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Sun, Oct 23, 2005

Bombardier Puts C-Series Aircraft Plans On Hold

US Carriers' Woes To Blame

After closer inspection, Bombardier Inc. has decided now might not be the best time to bring a new commercial airliner to market in the United States.

Officially, the company has put off its decision to go ahead with production of its new C-Series aircraft -- to be produced in 110- and 130- seat versions -- because it has "some important customer meetings" coming up and "we want to present to our board all the information necessary" to make a decision, according to a company spokesman.

One of those customers, according to The Wall Street Journal, is beleaguered Northwest Airlines. Bombardier was looking closely at Northwest as a candidate for the C-Series, according to Bombardier spokesman John Paul Macdonald, as Northwest's large fleet of DC-9s will be ready to be taken out of service around 2010 -- right around the time deliveries of the similar-sized C-Series would begin.

However, Northwest's recent bankruptcy, as well as the overall financial plight of the US airline industry, is "making it a little more difficult and requires a bit more time for us in discussions" with planned customers for the new C-Series, said MacDonald.

The C-Series is seen as an important aircraft for Bombardier, as it would elevate the company beyond the corporate-and-regional-jet markets and into the commercial airliner realm currently dominated by Boeing and Airbus.

As was reported earlier this year by Aero-News, employees in the manufacturer's Montreal plant were even willing to take large labor concessions in order to land work on the new jet. The company previously stated it would not announce a final production point for the jet -- possible candidates include Montreal, Toronto, and Ireland -- until customers had been secured.

Although a final decision to go ahead with the $2 billion project has been delayed, company officials maintain development and product evaluation work will continue on the C-Series.

"The reception is still enthusiastic" for the C-Series among potential customers, Macdonald said.

FMI: www.bombardier.com

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