Category Archives: Delta Airlines

Delta CSeries deliveries to begin this year

 

Bombardier expects to begin delivering CSeries aircraft to Delta Air Lines this year, saying there is no longer any impediment to delivering CS100s straight from its Mirabel, Canada, final assembly line to the Atlanta-based airline.
“Clearly, the Delta aircraft are in the skyline for 2018,” Bombardier CEO Alain Bellemare told analysts Feb. 15 as he presented the Canadian company’s 2017 financial results.    Bellemare said the recent 4-0 ruling by the US International Trade Commission (ITC) negating proposed tariffs on CSeries exports to the US removes any restrictions on CSeries deliveries.    The ruling gives Bombardier the “ability to shift the aircraft out of Mirabel to Delta,” Bellemare said.
The uncertainty surrounding the US Commerce Department’s proposed duties on the CSeries forced Bombardier and Delta to delay the originally planned April 2018 start of CS100 deliveries to Delta, which has 75 CS100s on firm order.    With the tariff issue hanging over Bombardier, it was thought deliveries to Delta would have to wait until Bombardier and Airbus, which has agreed to take a majority stake in the CSeries program, established a CSeries final assembly line (FAL) in Mobile, Alabama, alongside Airbus’ existing A320 family US FAL.
Bellemare emphasized that plans for the Mobile FAL are “moving full speed ahead,” explaining, “We believe it’s the right strategy to have a US FAL to serve US customers.”    But at least the first batch of Delta deliveries can now come from Mirabel, he said.
The ITC ruling “clears the path for us to support Delta this year,” Bellemare said. Bombardier is working “through the logistics” of CS100 deliveries with Delta, and will soon be able to finalize a delivery plan, he said, adding that the ITC ruling “clears the way to finalize our plans” with Delta.
Bellemare expects the Bombardier-Airbus CSeries deal to be approved by regulators and close later this year. “Integration planning is going extremely well,” he said.    “We are ready to hit the ground running once we close, including construction of the Alabama FAL as soon as possible.”
Bombardier reported a 2017 net loss of $553 million, a 44% improvement over a $981 million net deficit in 2016. Bellemare urged investors to focus on the improvement, noting that 2017 completed the “second full year of our turnaround plan” and Bombardier is “exceeding our commitments” in terms of its financial performance.   “2018 will be a pivotal year for Bombardier,” he said, predicting that the company will move into “a strong growth phase” this year.

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When will Bombardier be able to deliver its CSeries aircraft to Delta?

 

Montreal – Could it be that Bombardier misses the April deadline for delivery of the CSeries to Delta? According to Aviation Week magazine, it is the scenario that was confirmed by Bombardier at the Singapore Air Show.

There will be a significant impact on the timing of our deliveries to Delta, said Colin Bole, Senior Vice President of Sales at Bombardier Commercial Aircraft in an interview with Aviation Week.
These words come three weeks after Delta acknowledged the possibility of a delay in the delivery schedule.    The company had to invest in the maintenance of the MD88s to keep them a little longer, which to be replaced by CS100s.
According to the forecasts released in December 2017, the Canadian manufacturer plans to deliver this year 40 CSeries devices.    The manufacturer currently has 372 aircraft in its backlog.   Bombardier manages its delivery schedule proactively, according to the needs of its customers,  spokesman Simon Letendre said.
Business negotiations between Bombardier and its customers are confidential.    As for the deliveries of CSeries aircraft, this will undoubtedly be one of the themes addressed during the release of our fourth quarter and fiscal year results on February 15th, he added.
The contract with Delta announced in early 2016, for a firm order of 75 CS100 aircraft, the smaller variant of the CSeries family.    At the catalog price, the agreement was valued at $ 5.6 billion.
This agreement was taken up by Boeing to the US Department of Commerce in 2017 by claiming that Bombardier received subsidies from the Canadian government to develop the aircraft, and the deal was unfairly harming Boeing’s trade in the US.   While the US authorities were busy processing Boeing’s complaint, Bombardier sold 51% of the CSeries program to Boeing’s European rival, Airbus.   For Bombardier, integration with Airbus is the priority these days, Boles said.
Airbus plans to build an assembly line for CSeries on its Alabama plant, a tactical maneuver to bypass the punitive tariffs of 292% imposed on CSeries aircraft by The US Department of Commerce.    The Department’s decision was dumped last month by the US International Trade Commission (USITC), a bitter setback for Boeing.

Built in the United States or Canada?
Delta has not yet decided on whether to take delivery of Canadian-built aircraft instead of the new line,  Bole told Aviation Week.   After the official green light, the line in Alabama could be in operation within 12 months, according to Bole.
During the cases, Bombardier claimed that Boeing was not harmed due to the sales agreement with Delta because the American manufacturer doesn’t manufacture any aircraft of the same size as those of the CSeries.