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.

FMI: www.bombardier.com, www.lufthansa.com, www.nowisthefuture.com