-45 firm orders for the CS300
-Option for 30 more (or to substitute the smaller CS100)
-Deliveries to start late 2019 and go through 2022
-Replacing the Embraer 190 with the first 25 deliveries
Quote:
"We are delighted to announce this important agreement with Bombardier for the purchase of CS300 aircraft as part of the ongoing modernization of Air Canada's narrowbody fleet," said Calin Rovinescu, President and CEO of Air Canada. "With its high fuel efficiency performance and greater seating capacity, the next generation technology of the C Series is very well suited for our current and future network strategy and will be an extremely efficient addition to our fleet. The renewal of our North American narrowbody fleet with more capable and efficient aircraft is a key element of our ongoing cost transformation program - plus the enhanced passenger cabin comfort provided by the CS300 will help us to retain Air Canada's competitive position as the only Four-Star international network carrier in North America.
Quote:
"The entry of the C Series into our fleet is expected to yield significant cost savings. We have estimated that the projected fuel burn and maintenance cost savings (on a per seat basis) of greater than 15 per cent should generate an estimated CASM reduction of approximately 10 per cent, when compared to the aircraft it will replace.
Easy knee-jerk reaction is to think that this was all done politically against Air Canada's wishes. You know what with them being Montreal HQ'd and all. However Bombardier by all accounts so far has a hell of an efficient and completely modern aircraft on their hands with the C Series, and asides from a few small orders was desperate to land a big one. They may have thrown Air Canada quite the large discount to secure this order, and also have AC announcing it the same day news is out there of Bombardier slashing 7000 from their workforce.
I've seen it mentioned online how Embraer was in the same situation when they launched the E190 regional jet, then all of a sudden Jet Blue showed up and placed a large order. Program secured and additional orders from large operators came in.
Will we ever know the whole truth? Doubtful, but if the C Series lives up to (or exceeds) it's performance targets it will be a great fit for Air Canada and probably other operators. Then Bombardier could get working on a CS500 stretch to compete in the A320/737 range.
The Following User Says Thank You to Bigtime For This Useful Post:
My comment was in no way meant to convey those feelings.
I think it's a great plane, and I hope it sells well. I worked for BI since 2000 and our division was recently sold. I have a lot invested and wish them the best.
I am happy to see a Canadian company buy into the plane, there are few opportunities these days to shop local and I think it is nice to help out the greater good as well as buy a good product.
And whether politicians were involved or not, I would hope that any government that is aiding a Canadian company would expect them to support others. AC has received enough aid that this is a great opportunity to give back.
The Following User Says Thank You to speede5 For This Useful Post:
I wasn't countering your post, just trying to add some info for any that may go right to that conclusion.
More info coming out, apparently AC and Quebec/Federal government were fighting over the law that stated AC had to keep a heavy maintenance base in Montreal. A few years back they outsourced most of that maintenance overseas (Singapore I believe), so part of this deal also involves all C Series maintenance to be done in Quebec.
So definitely some political stuff going on, but how much of it was applied to Bombardier versus AC? Bombardier may have offered insanely steep price discounts to get this order, and AC looked at that with the counter of having to have all maintenance on this fleet in Quebec/Canada. I'm guessing it will still wash in AC's favour, or else they would have said no to the deal.
The Following User Says Thank You to Bigtime For This Useful Post:
I wasn't countering your post, just trying to add some info for any that may go right to that conclusion.
More info coming out, apparently AC and Quebec/Federal government were fighting over the law that stated AC had to keep a heavy maintenance base in Montreal. A few years back they outsourced most of that maintenance overseas (Singapore I believe), so part of this deal also involves all C Series maintenance to be done in Quebec.
So definitely some political stuff going on, but how much of it was applied to Bombardier versus AC? Bombardier may have offered insanely steep price discounts to get this order, and AC looked at that with the counter of having to have all maintenance on this fleet in Quebec/Canada. I'm guessing it will still wash in AC's favour, or else they would have said no to the deal.
Rumor has it that the lawsuit against AC for moving heavy maintenance out of Quebec has been dropped. Coincidence?
Pretty sweet deal for AC all around I am thinking. They get a great aircraft (probably at a highly discounted price) and this lawsuit conveniently goes away. This also takes a little heat off the federal Liberals who I believe were under some pressure to find a way to financially support Bombardier but obviously were in a political bind to do so.
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