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Sat, Feb 23, 2008

Bombardier Receives Formal Thumbs-Up For CSeries

Aircraft Will Sport Five-Abreast Seating, P&W Geared Turbofan

An apparent successor to the once-proud DC-9/MD80/B717 series of aircraft has been named... and it'll come from Canada.

Confirming earlier reports, Bombardier announced Friday its Board of Directors has granted authority to offer formal sales proposals of the CSeries aircraft family to airline customers. Entry into service is scheduled for 2013.

Authority to offer is the next step in Bombardier's cautious approach to launching the program. Before requesting program launch approval from the Bombardier Board of Directors, Bombardier Aerospace will obtain firm commitments from customers. A launch decision for the aircraft -- Bombardier's largest offering to date, and a shot into territory now dominated by US and European manufacturers -- is expected later this year.

"The CSeries aircraft will benefit from the latest technological advancements, including: increased use of composites and aluminum lithium in structures; a next-generation engine -- the Pratt & Whitney Geared Turbofan; and the very latest in system technologies, such as fly-by-wire, and fourth-generation aerodynamics. Together, these advancements will produce up to 20 per cent better fuel burn and up to 15 per cent improved cash operating costs versus current in-production aircraft of similar size," said Pierre Beaudoin, President and Chief Operating Officer, Bombardier Aerospace.

"Our decision to continue refining our business plan over the last two years has proven to be the right one. It has allowed us to take advantage of new technologies and to meet the airlines' evolving requirements for future efficient five-abreast aircraft. Airlines worldwide have expressed their keen interest to receive formal sales proposals from us," he added.

"We are delighted that Bombardier's Board of Directors has given authorization to offer the CSeries aircraft, and we are excited to partner with Bombardier in discussions with airlines and operators around the world," said Todd Kallman, President, Pratt & Whitney Commercial Engines. "The game-changing performance of the Pratt & Whitney Geared Turbofan engine, combined with the new generation design of the CSeries aircraft, will bring double-digit improvements in fuel efficiency, environmental emissions, noise and operating costs to CSeries customers."

Though no airlines to date have officially committed to the plane -- those announcements will probably come with the official launch decision -- at least three expressed serious interest in the CSeries: Lufthansa, Qatar Airways, and ILFC.

"Lufthansa's focus is on a sustainable fleet development providing flexibility for the future. This includes, amongst others, the assessment of technology, reliability, environmental footprint, economics and passenger comfort. We are considering the CSeries family of aircraft in our broader evaluation of opportunities for the lower end of the single-aisle fleet because its proposed advantages could be attractive to us," said Nico Buchholz, Senior Vice-President, Corporate Fleet, Lufthansa.

"The CSeries aircraft's 2013 entry into service date suits us very well. We envisage an order for 20 aircraft," said Akbar Al Baker, Chief Executive Officer, Qatar Airways.

"We are very interested in the aircraft and have been looking at the CSeries program very carefully," said Steven F. Udvar-Hazy, Chairman and CEO/Founder of lessor company International Lease Finance Corporation. "ILFC is not only considering buying the aircraft, we could become a co-launch customer.

"However, other major airlines need to sign up to the program as well. We would like to see a North American, European and possibly Asian customer," he added.

Bombardier intends for the CSeries to capture half of the lower end of the 100- to 149-seat market segment, estimated at 5,900 aircraft over the next 20 years. Since the demise of the last five-abreast airliner, the Boeing 717, that market has been served by smaller variants of Boeing's 737, and the Airbus A320 family... which means Bombardier appears to be priming for what looks to be a very interesting fight.

FMI: www.bombardier.com

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