Air Canada to buy 75 Bombardier C Series

pianokeys

pianokeys

MEL NO MUFFS
Air Canada today announced that it has entered into a Letter of Intent (LOI) with Bombardier Inc. for the acquisition of up to 75 Bombardier CS300 aircraft powered by Pratt & Whitney PurePower® PW1500G engines as part of its narrowbody fleet renewal plan.

"The first 25 aircraft on delivery will replace Air Canada's existing mainline fleet of Embraer E190 aircraft,..."

"The Boeing agreement provides for Boeing to purchase up to 20 of the 45 Embraer E190 aircraft in Air Canada's fleet and the first 25 C Series will replace the remaining E190s."

I need to hire Air Canada's negotiators when I purchase my next car. What a greasy deal, get Boeing to buy back some of the E Jets in exchange for 737s, and then replace them with whats probably a sweet deal from Bombardier. I'd say this is definitely a boost to the C series reputation.
 
FloridaLarry said:
The pressure on Air Canada to 'buy Canadian' must have been colossal.

Is there a cancellation clause if Bombardier is bought out by, say, Boeing?
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Don't see a fit.

CS300 overlaps 737-700

When we (McDonnell-Douglas) bought Boeing using their money :) first things to go were the overlaps in commercial
 
pianokeys said:
Air Canada today announced that it has entered into a Letter of Intent (LOI) with Bombardier Inc. for the acquisition of up to 75 Bombardier CS300 aircraft powered by Pratt & Whitney PurePower® PW1500G engines as part of its narrowbody fleet renewal plan.

"The first 25 aircraft on delivery will replace Air Canada's existing mainline fleet of Embraer E190 aircraft,..."

"The Boeing agreement provides for Boeing to purchase up to 20 of the 45 Embraer E190 aircraft in Air Canada's fleet and the first 25 C Series will replace the remaining E190s."

I need to hire Air Canada's negotiators when I purchase my next car. What a greasy deal, get Boeing to buy back some of the E Jets in exchange for 737s, and then replace them with whats probably a sweet deal from Bombardier. I'd say this is definitely a boost to the C series reputation.
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This type of fleet transaction is not that uncommon amongst operators/OEMs. It's definitely a step in the right direction for Bombardier.

Along those same lines, I would not be surprised if Bombardier is taking these E190's out for Air Canada and in turn sells/leases them to Delta, similar to the Air Canada/Boeing Capital/Delta deal - effectively getting their foot in the door at both shops. The E190's that will be taken out are 2006 - 2008 vintage - meaning they will have at least half of their useful life left once they exit the Air Canada fleet. It gets Delta 25 more sister-ship E190's (all 45 from Air Canada), and gets Bombardier a staple order + a foot in the door at Delta. All speculation though.
 
jskibo said:
Don't see a fit.

CS300 overlaps 737-700
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The 737 is a dinosaur. Nobody except SWA wants it.

Some Boeing-inspired mods, performance boosts, aggressive marketing, and a new name starting and ending with 7 and you've got a winner on your hands.

Rather than stretch the 737 and throw a suspension lift on it, built a replacement sized and optimized a little bigger and let the C-series compete against the 190s and replace all the tired 737-3/5/7s out there.

But I'm just a pilot; an average one at that.
 
JeppUpdater said:
The 737 is a dinosaur. Nobody except SWA wants it.

Some Boeing-inspired mods, performance boosts, aggressive marketing, and a new name starting and ending with 7 and you've got a winner on your hands.

Rather than stretch the 737 and throw a suspension lift on it, built a replacement sized and optimized a little bigger and let the C-series compete against the 190s and replace all the tired 737-3/5/7s out there.

But I'm just a pilot; an average one at that.
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-300s and -500s are all but gone already.
 
JeppUpdater said:
The 737 is a dinosaur. Nobody except SWA wants it.

Some Boeing-inspired mods, performance boosts, aggressive marketing, and a new name starting and ending with 7 and you've got a winner on your hands.

Rather than stretch the 737 and throw a suspension lift on it, built a replacement sized and optimized a little bigger and let the C-series compete against the 190s and replace all the tired 737-3/5/7s out there.

But I'm just a pilot; an average one at that.
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Odd, with an order backlog well above 3000 jets for MAX alone, a little over 4000 total, either Southwest has a helluva expansion plan we haven't heard of, or your opening statement is perhaps less than factual :)
 
Ecl!pse said:
This type of fleet transaction is not that uncommon amongst operators/OEMs....
Along those same lines,... It gets Delta 25 more sister-ship E190's (all 45 from Air Canada), and gets Bombardier a staple order + a foot in the door at Delta. All speculation though.
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Agreed, mostly. Delta's recent used-plane steps (B-717s and E-190s) show a careful but new trend that may spread to other legacies.

I'm not sure just what this does to get Bombardier's foot into Delta's door, though. No Bombardier aircraft involved (except existing A/C at the Regionals, owned or other). Bombardier's foot isn't doing so well these days. In essence, they bet the company on the CS-1-300 series. Wish 'em well, eh?
 
JeppUpdater said:
Rather than stretch the 737 and throw a suspension lift on it, built a replacement sized and optimized a little bigger and let the C-series compete against the 190s and replace all the tired 737-3/5/7s out there.
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That was actually the plan. Boeing was just starting its plans for a clean sheet 737 replacement, when Airbus announced their new NEO's. So in order to compete, Boeing shelved the 737 replacement. So yeah... blame Airbii for the 737 MAX.
 
Maximillian_Jenius said:
That was actually the plan. Boeing was just starting its plans for a clean sheet 737 replacement, when Airbus announced their new NEO's. So in order to compete, Boeing shelved the 737 replacement. So yeah... blame Airbii for the 737 MAX.
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Not completely shelved. They targeted end of 2016 on a decision whether to proceed with initial designs on something between a 737-900 and a 767-200. Might take some time though as our CEO (Immelt) says the thrust range required would likely be a new engine design
 
jskibo said:
Not completely shelved. They targeted end of 2016 on a decision whether to proceed with initial designs on something between a 737-900 and a 767-200. Might take some time though as our CEO (Immelt) says the thrust range required would likely be a new engine design
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What you stated is for the 757 (MOM) replacement jet. And not the 737 replacement. Boeing is supposed to announce details of the new jet by the end of the year, as you stated.
 
Maximillian_Jenius said:
What you stated is for the 757 (MOM) replacement jet. And not the 737 replacement. Boeing is supposed to announce details of the new jet by the end of the year, as you stated.
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Watch what happens. If it launches they will plug and deplug it to fit multiple seating ranges past the initial version. Eventually it will replace the entire range of 737 and what was 757.

Way too costly to launch multiple clean sheet designs unless fuel savings or other gains is in the 20%+ range and even then, depending on the economic cycle. Aircraft are lagging indicators.
 
FloridaLarry said:
Agreed, mostly. Delta's recent used-plane steps (B-717s and E-190s) show a careful but new trend that may spread to other legacies.

I'm not sure just what this does to get Bombardier's foot into Delta's door, though. No Bombardier aircraft involved (except existing A/C at the Regionals, owned or other). Bombardier's foot isn't doing so well these days. In essence, they bet the company on the CS-1-300 series. Wish 'em well, eh?
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That trend has already started spreading - UAL is taking up 25 used A319's from Aercap, Southwest is picking up used 737-700's, and non-US legacies like IAG are talking about keeping A340's around in this low fuel environment. It's a trend that makes complete sense.

This transaction gets Bombardier's foot in the door at Delta only if they lease the E190's to Delta (that assumes they are buying them from Air Canada). Bombardier then becomes one of Delta's lessors, and by having Delta as a lessee, Bombardier has put themselves in a position to become the replacement OEM once the E190's retire ~2030. By that point, if the program is still around, they should be able to offer more competitive packages. It doesn't guarantee them anything - but it is certainly a better position than they are in today with Delta (i.e. limited conversations and no sales), and shows Delta they can be flexible in making deals to get things done.

Agree that Bombardier bet the house on the CSeries, and then took a handful of missteps in the sale/production/launch phases. The jury is still out whether or not the Bombardier story pans out.
 
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