Firm Purchase Agreement For 30 Planes, Options On 30 More
Better late than never. Bombardier Aerospace announced Wednesday
Deutsche Lufthansa AG, launch customer for the CSeries aircraft
program, signed a firm purchase agreement for 30 CSeries
single-aisle aircraft. The aircraft will be operated by Lufthansa
subsidiary Swiss International Air Lines Ltd.
Based on list price, the contract value for the 30 CS100
aircraft (more on the name in a minute) is approximately $1.53
billion US. The agreement also includes options on an additional 30
planes aircraft.
As ANN reported, Lufthansa became the launch
customer for the CSeries aircraft family in July 2008 when it
signed a Letter of Interest (LOI) for up to 60 aircraft, including
30 options... but without a firm contract in hand, industry
confidence in the CSeries program began to wane, and that situation
wasn't helped by the downturn in the global airliner market as a
whole.
Teal Group analyst Richard Aboulafia
slammed the program in January, saying "we
just don't see it happening." A Lufthansa spokesman noted at the
same time that despite the LOI, "...there is no deadline and no
firm orders" for the aircraft.
Executives with both companies steered away from addressing the
delay in their prepared remarks Wednesday. "Our purchase agreement
with Bombardier for CSeries aircraft is a renewal of Lufthansa's
commitment to commercial success balanced by environmental and
business policies oriented toward sustainability and passenger
comfort," said Lufthansa's Senior VP of Corporate Fleet, Nico
Buchholz. "We are proud to be the launch customer for the CSeries
family of aircraft which meets our requirements for sustainable
fleet development including significant reductions in fuel burn and
noise, as well as offering flexibility for the future."
"Having Lufthansa -- known throughout the airline industry for
its stringent engineering and technical standards -- sign this
purchase agreement for our CSeries aircraft, confirms their
confidence in the airplane and the future of the program," added
Gary R. Scott, President, Bombardier Commercial Aircraft. "We, at
Bombardier, are delighted to have Lufthansa working with us from
the beginning as we develop a family of aircraft designed
specifically to meet the needs of the 100- to 149-seat market
segment."
With the order came a new nomenclature system for the CSeries
line. The 110-seat configuration, previously referred to as the
C110 by Bombardier, will now be designated the CS100; similarly,
the 130-seat C130 will be known as the CS300. A reason for the
change wasn't given... though one imagines Lockheed Martin may not
have been too happy with another "C130" aircraft out there.
Both CSeries planes will feature increased use of composites and
advanced aluminum alloys in structures. The aircraft will also be a
technological powerhouse, with such technologies as fly-by-wire
controls, electric brakes, and a next-generation engine -- the
Pratt & Whitney PurePower PW1000G geared turbofan.
At time of entry into service in 2013, the CSeries family of
aircraft will be the greenest single-aisle aircraft in its class,
Bombardier asserts. The manufacturer says the CSeries will emit 20
percent less CO2 and 50 percent less NOx, fly four times quieter,
and deliver dramatic energy savings.