Delta orders 75 CS100's

smurfjed

New format allows me to search, but I can't go to the found threads, so apologies for starting a new thread. Also it doesn't appear to allow me to quote, so had to do it manually....

Back to aviation, good news for Bombardier

Current news stories include Delta Air Lines order for 75 CS100s announced on 28 April which is an important progression for Bombardier s much-maligned, clean-sheet CSeries, and an indication that chief executive Alain Bellemare s retooled sales strategy, which includes absorbing steep discounts on early aircraft, is working, Flightglobal s Ascend consultancy believes.

roundymac

Good news for the boys in Belfast, a lot of jobs secured.

Tenger

roundymac wrote: »

Good news for the boys in Belfast, a lot of jobs secured.

Lots of Bombardier jobs secured certainly. Does Belfast contribute to the C series?
However longterm the company will be looking at their vulnerability.

L1011

Tenger wrote: »

Lots of Bombardier jobs secured certainly. Does Belfast contribute to the C series?
However longterm the company will be looking at their vulnerability.

It makes the wings at least

arubex

Belfast is currently the only aerospace plant globally that can do the special dry-lay-up for the C-series wings ( the patent is actually held by Bombardier NI ). The fabric is made in Germany, so this is good news for a couple of European countries, which will hopefully compensate for the cancellation of the Learjet 85 which was to use the same wing-forming technique.

It's a fair bit more difficult than the pre-impregnation technique used on the 787 but results in a lighter structure with much less wastage. Boeing are rumoured to be looking at the technique for the MOM project.

Unfortunately Bombardier NI follows a similar hire-and-fire cycle as Harland & Wolff so they're probably now panic-rehiring lots of formerly laid-off staff...

BonkeyDonker

Tenger wrote: »

However long term the company will be looking at their vulnerability.

The C-Series now has root in three major airlines/groups - Delta, Lufthansa and Korean. This in itself secures the aircraft, as if it proves to be as good as it looks like it is then there will be repeat orders for this, and its bigger variants from these airlines.

Delta alone could use it to replace everything upto 160 seats. That alone is around 400 aircraft. Obviously this will not happen as BBD dont have that capacity, but it builds massive security for BBD. Like the 737/A320 do for Boeing and Airbus respectively.

Look at how aggressively Boeing sold the B737-700 (a direct C-Series competitor) to United. 22M a frame if released figures are to be believed. Way below published costs, but reqiured to keep the C-Series out of United. I can imagine Delta got a similar offer, but sill choose the C-Series. Part of this must have been the cost/efficiency pay off, part to have a third OEM in the 100-160 seat market.

Short-term the C-Series will hurt Boeing more than Airbus as it will result in Boeing getting their lunch eaten at both ends of the 737 spectrum - the C-Series from below - the A321 from above and may result in Boeing needing to commit to a 737/MOM earlier.

But for Bombardier this gamble may very well be paying off.

cson

I'd say they were fairly heavily discounted by Bombardier to get a chunky order on the books and gain some sales traction. Probably a 717 replacement for Delta.

Lockheed

I can totally see them changing their options to CS300s and ordering them, might not come yet but it'll probably happen in the future when the new type is broken into Delta's fleet

Tenger

cson wrote: »

I'd say they were fairly heavily discounted by Bombardier to get a chunky order on the books and gain some sales traction.

Boeing did similar in 2002 for Ryanair with the B737....worked out OK for Boeing in the long run. Boeing were looking at partially closing the production line. Ryanair made a huge order which kept the line open until the industry rebounded post 9/11.

Willie Walsh stated it a few months back, "the C Series is a lovely aircraft" It is a great little plane. But airlines want financial sure things, not nice toys.
The problem for airline looked to get them is price, production and support. Bombardier couldn't really start large scale production without having a large order in place, they don't have the money to build them with the customers already in place.
Large orders mean guaranteed production which in part means other orders follow. No-one likes to be the first to jump. Bombardier lured Delta in with a great deal, other airlines will probably order now that the Delta order makes the production line viable.
A secure production line means that any customer also has a secure supply of parts and support. This has long been the bane of the Soviet/Russian industry.Their low rate production means customers are less trustful of post sales support.