AC Purchases C Series 300

Discussion in 'Air Canada | Aeroplan' started by milchap, Feb 17, 2016.  |  Print Topic

  1. milchap
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    milchap Gold Member

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    Agreement includes 45 firm orders plus options to purchase an additional 30 aircraft

    MONTREAL, Feb. 17, 2016 /CNW Telbec/ - 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 LOI contemplates 45 firm orders plus options to purchase up to an additional 30 aircraft and includes substitution rights to CS100 aircraft in certain circumstances.

    Deliveries are scheduled to begin in late 2019 and extend to 2022. The first 25 aircraft on delivery will replace Air Canada's existing mainline fleet of Embraer E190 aircraft, with the incremental aircraft supporting Air Canada's hub and network growth, creating one of the world's youngest, most fuel efficient airline fleets.

    The C Series purchase is subject to completion of final documentation and satisfaction of certain other closing conditions precedent.

    "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.

    "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.

    "Air Canada has a long history of collaboration with Bombardier. Air Canada Express regional partners operate one of the largest fleets of Bombardier aircraft in the world with a mix of over 135 regional jets and turboprop aircraft by December 31, 2016.

    "We were one of the launch customers for the Canadair Regional Jet and today's announcement reflects our continued support for Canada's aerospace industry and for the new technologies the industry may develop. We fully expect the new technology of the C Series to efficiently meet the demanding needs of our current and future network strategy," concluded Mr. Rovinescu.

    The acquisition of the C Series aircraft represents a key element of Air Canada's narrowbody fleet renewal program and complements the acquisition of 61 Boeing 737 MAX aircraft announced in December 2013 to replace the larger end of the airline's mainline narrowbody fleet. 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. Boeing 737 MAX deliveries are scheduled to begin in late 2017 and extend to 2021, while the C Series deliveries are scheduled to start in late 2019 and extend to 2022.
    [​IMG] [​IMG]
     
  2. canucklehead
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    canucklehead Gold Member

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    Good news for BBD. Hopefully this means that AC will execute their LOI and actually purchase these planes. Interesting to see the 737 max and CS300 blend. I think the aircraft will be a nice complement to the fleet (would have preferred it over the 737 remake).

    Its timely since BBD was going to lay off 7000 employees worldwide to focus on selling the CS jets - http://www.thestar.com/business/2016/02/17/bombardier-cutting-7000-jobs.html

    In other news, certification of the jets should be coming soon from the EU and US bodies - http://www.bloomberg.com/news/artic...s-u-s-european-certification-for-new-jet-soon
     
  3. slalom

    slalom Silver Member

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    Think there may have been some political interference on this purchase decision?
     
  4. ACMM
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    Hope AC sees the light and ditches BBD
     
  5. londoncalling

    londoncalling Silver Member

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    I would rather see them ditch IBM and get some real programming efficiency going.:p
     
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  6. ACMM
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    Indeed. No argument there. Is IBM still involved?
     
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  7. mevlannen
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    mevlannen Silver Member

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    Don't know the answer to the question about IBM. Hmmm, should we be looking for their logotype somewhere on the Altitude Attitude Amplitude website?

    Need more kahvi, clearly....
     
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  8. londoncalling

    londoncalling Silver Member

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    I believe BLUE is your favourite colour, nest pas?;)
     
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  9. mevlannen
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    mevlannen Silver Member

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    Ayuh, it is, indeed. However, my IBM-issue flowcharting template is green, rather than blue.

    Image here, thanks to Wikipedia:

    https://upload.wikimedia.org/wikipedia/commons/4/4d/Flowchart-template.jpg

    I don't write code for a living, but I do use the template to symbolise the analytical workflow of coal samples taken from boreholes and coal-mine pillars. Repurposing keeps things fresh, it does.

    -----

    Oh, yes, I realised, once again, that my user-icon shows me with silvery-blue hair. That's not far off the truth, should I ever chance to neglect my monthly date with Miss Clairol.
     
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  10. YULtide

    YULtide Gold Member

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    Ah, the flowcharting template! :cool:
     
  11. canucklehead
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    canucklehead Gold Member

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    The bankruptcy filing of Republic may jeopardize their purchase of their CS jets.
    At 40 CS300s, they were the biggest customer early on, only surpassed recently by AC's announcemnent.
     
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  12. londoncalling

    londoncalling Silver Member

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    Maybe not. Republic was an early buyer of the CS100 and BBD may room to move us some customers at a better price with the cancellation.
     
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  13. ACMM
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    Not sure I understand. But does not matter. My days of flying AC are done. And fwiw my fav colour is actually orange.
     
    Last edited: Feb 28, 2016
  14. jaysona

    jaysona Silver Member

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    The article cited refers to the CS100 obtaining European certification.

    Air Canada has a LOI for the CS300 - which have not been issued a type certificate yet. The CS300 type certificate is expected to be issued by TCCA sometime the summer.
     
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