Aerospace 20 - Bombardier Turboprop Era Ends

The writing has been on the wall/s for a very long time.  Bombardier’s relationship with the de Havilland name comes, finally, to an end … truly the end of an era.

Bombardier has agreed to sell the Dash 8, Q400 programme, together with the de Havilland name, to Longview Aviation Capital, the parent company of Viking Air for $300 million.

Longview will continue to produce the Q400 at Downsview, Ontario, and Bombardier will transfer the Global business-jet assembly to Toronto Pearson International Airport.

The entire de Havilland product line is now reunited under the same banner.  Having transferred the C Series programme to Airbus, Bombardier was seeking options for its remaining aircraft business.  “We decided to sell the Q400 to a better owner.” said Bombardier President and CEO Alain Bellmare (A very intriguing statement).

The interesting result of this agreement is that Longview Aviation Capital (Viking Air) now, owns the type certificates and manufacturing rights for all de Havilland Canada aircraft from the DHC Chipmunk, Beaver, Otter, and Twin Otter, through to the Dash 7/8 turboprop series and the CL-215 amphibious aircraft.

Not quite the end of an era yet, it seems, even though Bombardier has, just, announced the lay-off of 5,000 positions globally.  The government’s opposition is going to have a field day.

Aerospace 19 - Airbus A220

At one time there was Canadair — then De Havilland (Canada) — both merged to become Bombardier Aerospace.  Then, the innovative CSeries airliner emerged to challenge the two giants Airbus and Boeing.  Unfortunately, Bombardier suffered from financial teething troubles coupled with new engine problems that was especially developed for the airframe by Pratt & Whitney, not to mention WTO threats from Boeing (Aerospace 17) .

Finally, Airbus SE stepped in to buy a 51% share of Bombardier’s CSeries division (Bombardier continuing with total control of other aircraft divisions, e.g., Q-400, and CRJ, etc.).

Now, under control of Airbus, the aircraft titles C-100 and C-300 have been changed to A220-100 and A220-300 respectively.

It is going to be an interesting time, from now onwards, to see if this will have an affect for future sales.  It is quite evident that the A319 will eventually concede to the superiority of the A220-100, a position with which it shares.  

Today, an MOU for 60 A220-300 aircraft was signed by a group of investors led by the CEO of JetBlue for a planned new airline, so far unnamed (The rumour says ‘Moxy’).

Aerospace 18 - Delta CSeries

Bombardier expects to begin delivering CSeries aircraft to Delta Air Lines this year, saying there is no longer any restriction to delivering the CS100 straight from its Canadian assembly line to the Atlanta-based airline.

“Clearly, the Delta aircraft are in the skyline for 2018,” Bombardier CEO Alain Bellemare told analysts February. 15th.  The recent 4-0 decision by the US International Trade Commission (ITC) canceling proposed tariffs on CSeries exports to the US removes any restrictions on CSeries deliveries.

The uncertainty surrounding the US Commerce Department’s intended duties on the CSeries forced Bombardier and Delta to postpone the originally planned April 2018 start of CS100 deliveries to Delta, which has 75 CS100s on firm order. 

Bellemare emphasized that plans for the Alabama, facility, are “moving full speed ahead,” explaining, “We believe it’s the right strategy to have a US facility to serve US customers.” But at least the first number of Delta deliveries can now come from Canada, he said.

Bellemare expects the Bombardier-Airbus CSeries deal to be approved by regulators 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 facility as soon as possible.  2018 will be a pivotal year for Bombardier,” he said, forecasting that the company will move into “a strong growth phase” this year.

Aerospace 16 - airBaltic CS300 First Comercial Flight

The Bombardier C Series CS300 first scheduled commercial flight for Latvian launch carrier, airBaltic, took off from Riga to Amsterdam today (14th December, 2016). This will be the first of many flights for the new, innovative, 130 to 150-seat, CS300, taking place this year with many different airlines, and bodes well for the future.

Bombardier said it will increase the formal specifications for the C Series CS300, as the aircraft’s per seat and trip costs have already proven 2% better than its original brochure values.

“We are thrilled to be flying the first CS300 aircraft – the newest member of the most innovative and technologically advanced family of airliners in the world,” said Martin Gauss, Chief Executive Officer, airBaltic. “With its longer range capabilities, lower fuel burn and reduced noise emissions compared to other airliners in its segment, the CS300 aircraft will enable airBaltic to open new routes and connect people all across Europe, while offering passengers an unparalleled in-flight experience.

Aerospace 15 - SWISS CS100 First Flight

The Bombardier C Series first scheduled commercial flight with SWISS airline took off from Zurich to Paris today (15th July 2016).  This will be the first of many flights for the new, innovative, CS100 taking place this year with many different airlines, and bodes well for the future.

Bombardier CS100

Aerospace 14 - The Right Profit Metric

ⓒ Bombardier, Montreal, May 2016

It's useful to know what Boeing and Airbus wouldn't tell you.

What’s the Right Profit Metric? 
Cost Per Passenger.

Traditionally, the airline industry has concentrated on a cost-per-seat strategy because it was the only way to extract margin.  As a result of the lower cost-per-seat pursuit, many airlines were driven toward purchasing larger single-aisle aircraft.

But one size does not fit all.

On many routes, seats were flying for free.  Empty seats.  And if not free, the seats were on sale. And as everyone knows, sales procure low yields.  Consequently, a large part of the secondary market was dropped, or even ignored.

On the other hand, medium-haul markets are reaching a certain level of saturation.So where is the next level of growth?  What’s the best way to stimulate traffic and increase the number of passengers travelling through hubs?  Secondary and tertiary markets are the key.  In other words, it’s time to go deeper in the regions.

What really matters when looking for high yields at low risk is simple: the cost per passenger on board.

Right-Sized for Opening New Markets

Free from design constraints, the Bombardier C Series 5-abreast platform was developed specifically for the 100 -150 passenger market.  It is not a stretch, nor a shrink of a legacy program.  It’s the right aircraft at the right time.

A Low Risk Solution

With a 25 to 35% lower cost per passenger on board, the Bombardier C Series aircraft are the ideal complements to the larger A320/A321 and 737-800/737-900. The C Series family provides the freedom to think differently about network planning. Which means, airlines have a new way to grow and focus on the next opportunity for expansion.

Increase Your Yields

Entering into service in July of this year, the Bombardier C Series is the right tool to help you be the first to grow these new markets profitably. Now, you can return to these once deserted markets with the right sized aircraft and start increasing your yields.

Be the first to serve those markets where there is no competition, but plenty of opportunity.

Grateful thanks to Bombardier for producing this article.

Aerospace 13 - Bombardier-Delta Air Lines Firm Order

Bombardier received a major boost Thursday from Delta Air Lines, which has placed a firm order for 75 CS100 aircraft with options for an additional 50 more in what would be the largest order for the Montreal company's troubled CSeries passenger jet program.

Based on the list price, the firm order is valued at approximately US$5.6 billion, Bombardier said. Delivery of the aircraft to Delta, one of the largest airlines in the world, is expected to begin in 2018.

"This is a big win,'' Bombardier CEO Alain Bellemare said during a conference call.

Bombardier (TSX:BBD.B) has been at the centre of political controversy in recent months and it's banking on the success of its CSeries planes to revive its flagging fortunes.

Alain Bellemare, left, president and CEO of Bombardier Inc., and Ed Bastian, right, CEO of Delta Air Lines, shake hands in front of a Delta-branded Bombardier C-Series jet in Mirabel, Que., on Thursday. (Photo: Ryan Remiorz/Canadian Press)

Aerospace 12 - Great News

Bombardier Celebrates the Completion of its CS100 Aircraft’s Certification Flight Test Program

Behind schedule (The pundits keep telling us) but two years ahead of the competition.

Aerospace 10 - Bombardier CS300

The latest Bombardier CSeries aircraft, the larger CS300 variant made a successful flight from the Mirabel airfield in Quebec today.

http://cseries.com/#/category/videos

The flight lasted five hours and reached an altitude of 41,000 feet at a speed of 255 knots (470 km/h). “It was an absolute privilege to fly the first flight of the CS300 airliner and I’m absolutely ecstatic with how well it handled. It’s a pilot’s aircraft and handled exactly as predicted by simulation,” said Capt. Litavniks. “Pilots will find it easy to transition from the CS100 to the CS300 aircraft or vice versa, which will greatly reduce training costs for operators using both models”.

Bombardier is creating the future with its CSeries aircraft — the only 100% new family of airliners specifically designed for the 100- to 149-seat, single-aisle market.  Benefitting from a clean-sheet design that includes leading-edge technology and systems integration, advanced materials and latest generation aerodynamics, the CSeries aircraft offer a 15% cash operating cost advantage, a 20% fuel burn advantage, exceptional operational flexibility, widebody comfort and an unmatched environmental and noise footprint.

Bombardier has booked orders and commitments for 563 CSeries aircraft, which includes firm orders for 243.

The following link to a FlightGlobal magazine article is well-worth reading:

http://www.flightglobal.com/news/articles/analysis-is-air-show-debut-a-make-or-break-moment-for-412630/

Aerospace 9 - Bombardier CSeries

“Okay;  Now, pay attention”.  The head master said at this morning’s assembly.

“John;  What are you doing?  Don’t do that”.  There was a slight smile.

“It has come to my attention ....”  He looked down at his notes.

I have received some comments regarding the potential success of Bombardier’s new CSeries aircraft, and I should point out that, since the aircraft’s first flight on the 16th September, 2013, (See my Blog of the same date) four CS100

http://berniesblazon.blogspot.ca/2013/09/aerospace-6-its-innovation.html

flight test vehicles have been built and are happily flying down in Wichita, US.  In fact, about 850 certification test hours have been amassed on the aircraft to date.  Another, larger, CS300 version has been completed, and should fly within the next few weeks, following various ground tests.  The final CS300 flight test vehicle is in construction and should be available soon.

http://cseries.com/cs300-all-fired-up/

There are still concerns that that orders are below the numbers anticipated at this stage which is making many financial analysts concerned, but as this is a totally new technology for the industry as a whole, that shouldn’t be too surprising

It will be a somewhat tense year.

Aerospace 6 - It's Innovation!

It’s a plane!  It’s the CSeries!  It’s innovation!  Yes, it’s another example of Bombardier creativity.  Today, the first CSeries aircraft took off, like a whisper, from Mirabel Airport in Quebec.  It was a few months behind the original schedule but this compares quite favourably with the years of delay for Boeing’s B-787 ‘Dreamliner’, which continues to reveal problems.

The flight lasted for a few hours, and the test pilots enthusiastically reported a perfect flight.

Illustration by Bombardier Inc.

What happens next?  Well, in my opinion, many airlines who have been placing meaningless Letters of Intent with Airbus, Boeing, et al., will be reassessing their biased agendas and sending representatives to Montreal (If they are not already there).  After all, you are reminded of the old technology inherent in the Airbus and Boeing aircraft that will not become available until 2017 ... compared to the 20% more efficient CSeries becoming available next year (2014).

Look out, also, for news from Porter Airlines, who have already announced their conditional order of 12 CSeries aircraft (Conditional on a runway extension at the Billy Bishop airport) and, then, imagine the impact of WestJet trying to bring their new Q400’s into Billy Bishop.  It's going to be interesting.

Stay tuned (As they say).

Aerospace 5 - WestJet Moves

Last month, WestJet Airlines Ltd. placed a letter of intent to purchase 65 B-737 aircraft from the Boeing Company, and delivery of the first aircraft will be in September 2017.  As a result, I was empowered to research this segment of the market concerning the future of both WestJet and Bombardier Aerospace.  What follows is a pocketbook guide to my (admittedly biassed) thoughts.

WestJet B-737 NG, Early Morning Approach into London, Ontario,

Boeing introduced the first B-737 in 1967 and it became the best-selling commercial jet in aviation history.  Over this period, many modifications were made to the aircraft to increase seating and range.  In 1997, when it became clear that the Airbus A-320 was a serious threat, Boeing introduced the Next Generation (NG) aircraft, the main differences could be seen in a new wing with blended winglets, a quieter engine, and modern avionics.  One interesting problem that happened with the B-737 NG was due to the larger engine which, if placed in its original position, was too close to the ground.  This problem was solved by positioning the engine further forward on the wing.  In 2010, Airbus announced the new engine option for the A-320 NEO, thus, increasing the competition with the B-737 NG.  In 2011, Boeing announced the B-737 MAX.  This version has another new engine and, because of closeness of the engine to the ground, has a greatly extended nose wheel  length.  

Delivery of the first aircraft is due to begin in 2017.  Meanwhile, Bombardier has been working quietly in the background on the design of a new 100-seater CSeries aircraft, to add to its solid fleet of new technology aircraft such as the Challenger, CRJ, Learjet, and Q400 aircraft.The idea for the CSeries aircraft started in 2004 using some of the high technology used on the company’s other designs, but totally designing a new aircraft from nose to tail, using a great deal of carbon fibre, and incorporating a newly designed, highly efficient engine.  The aircraft uses 46% composite materials, 24% aluminium-lithium which allows a 15% lower seat-mile cost, a significant reduction in maintenance costs ... and a 20% less fuel per trip than any of the Boeing, Airbus, and Embraer competitors.  Not to mention that, as I write, Transport Canada has issued the permit to fly for the first aircraft, which should happen within days of writing this, and a proposed entry into service for next year (2014).

Therefore, to Greg Saretsky, the CEO of WestJet, I am bound to ask this obvious question;  Why, when you now have introduced Q400’s into your fleet, have you decided to order an old, patched-up design, B-737 MAX for 2017, when the 20% better Canadian CSeries will become available next year?

Aerospace 2 - Opposing Two Giants

Last week, Boeing revealed its decision regarding the question of a new generation aircraft, the B-737 MAX, that will be competitive with the proposed Airbus A-320 NEO.  There is, naturally, some controversy regarding this decision that questions the introduction of either aircraft.

In my opinion, there is a connection between these compromise plans and Bombardier's development of a narrow body aircraft, the CSeries.  Neither of the two giants could compete with the CSeries in its class for a number of reasons.  One reason that appeals to travellers is the four or five abreast seating in the CSeries that compares with the normal six abreast seating provided by the competition.  Airbus and Boeing argue that they are not competing in the 100-seat category but, if so, why have they rushed Band-Aid solutions to improving their A-320 and B-737 designs.  Probably, because should the CSeries be successful, and it will, Bombardier will introduce an extended version that, it could be suggested, will close the gap.

Originally, Boeing developed the B-737 with different fuselage-length variants and this natural progression was also seen in the A-320 series.  Over time, each manufacturer improved their design in small increments, for example, the introduction of composite materials and fly-by-wire systems.

Meanwhile, in fact, for more than two decades, Bombardier had entered the market with a range of small business jets, created completely from original designs and, most importantly, conducting advanced research in fuselage construction, composite materials, and closely coordinating with gas turbine manufacturers for fuel efficient engines, such that the introduction of their CSeries aircraft will be a leader in its class (Brazil's Embraer and China's Comac aircraft companies may compete in this market segment but, at the moment, can not compete, totally, with the advanced technologies employed in the CSeries).

Both Airbus and Boeing are showing good order books, especially Airbus, but we should note that they are not all firm orders.  The B-737 MAX is very much a compromise redesign, especially when we look at the new engines.  The main comparison with the A-320 NEO is the smaller fan blade diameter.  Although the new engine is larger than previous models, it is smaller than fitted to the A-320 NEO (168 cm compared to 205 cm fan blade diameter respectively).  The reason for this is that the height of the wing is less and the B-737 MAX requires a 42.9 cm (16.9 in) ground clearance.  It has been said, unconvincingly, that a larger engine would create greater drag but, equally, would be less efficient than that of the A-320 NEO.

In my opinion, the argument that the two giants are using tested designs is quite poor as there is little to compare, for example, the B-737 of 1964 with that of today.  Equally, the CSeries is using technologies that have been well proven for many years on their Global Express series of aircraft.

Therefore, the introduction of Bombardier's CSeries will be a leap forward in advanced design with superior qualities superior in its class, such that, I am sure, if the fly on the boardroom wall of Airbus and Boeing could talk, there would be some smiling faces in Montreal.

Aerospace 1 - Postscript

The show in Paris is over and the controversy that was created, relative to the Bombardier CSeries, advises me that it would have been prudent to wait for the final day.

The usual battle between the Big Two companies (Boeing and Airbus) dominated the media and, in my opinion, benefited Bombardier by highlighting their need to reconsider emerging technologies.  The success of the A320neo with its new engine, juxtaposed with no response from Boeing for a B737 replacement was interesting.

Bombardier’s large customer, Republic, caused a stir by ordering 40 A320neo’s, which caused a negative reaction to Bombardier's stock price, and much debate amongst aviation pundits.  Nevertheless, the consensus indicates that the CSeries will prove, overwhelmingly, that its cost savings will save airlines millions annually, compared to both the A320neo and the B737 compromise models.

The negative reviews regarding delivery delays related to new airframe construction technologies were given out of context — the technologies would be new for Boeing and Airbus, but Bombardier already applies these technologies throughout its present fleet of 4-abreast seating — the CSeries has simply expanded to a 5-abreast mode.

At the show, Bombardier came away with 56 total orders (including options) for the CSeries, from eight different customers, and many more for their other, existing aircraft, such as the Global series of business jets.  With more than 200 orders (including options) for the CSeries, its future is secured, especially considering that the first flight is not scheduled until the end of 2012.

Personally, my curiosity is, now, directed to the ‘fly on the wall’ in WestJet’s boardroom as they discuss their future fleet of B737’s.  Would it not be a proud moment for Canada if our best domestic airline used the CSeries aircraft.

Photo - Bombardier CSeries

Illustration by Bombardier Inc.

Aerospace 1 - Bombardier CSeries

My profile indicates that aerospace is a favorite subject of mine and, therefore, during this week of the Paris Air Show, it seems quite natural to write on this subject.

As we struggle to emerge from the recent recession, the aircraft industry is very cautious about predictions that attempt to balance future airline quantity requirements with related research into improving usage costs. Analysts predict that airlines will need $4 trillion worth of new aircraft during the next 20 years and, although there is an emphasis on eco-friendly aircraft, airlines focus on the financial bottom line. Thus, the two giants of the aircraft industry, Airbus and Boeing, should be concerned about the quiet ascendance of Bombardier into third place.

I have always been impressed by Bombardier’s innovation since visiting their early manufacturing facility at Cartierville in Montreal in the 1980’s (Originally, a small airfield used by Canadair). Their use of giant milling machines to produce fuselage side panels for the Challenger which did not require the conventional ribs and framing and, thus, reducing weight, together with laminar-flow wing surfaces for improved aerodynamics, was something that, being a sailplane pilot, impressed me quite a lot.

Thirty years of quiet innovation has brought Bombardier into serious competition with Airbus and Boeing, and the new CSeries aircraft is, in my opinion, bound to be a success. Not only is its composite airframe more advanced in design, but the new geared turbofan engine designed by Pratt & Whitney is causing the competition to swiftly play ‘catch up’. Airbus developing the new-engined A320neo compromise, and Boeing considering a whole new B-737 replacement (The new engine seems too large for the existing wing-to-ground clearance). Thus, it will be difficult for both companies to deliver ahead of the CSeries.

Finally, it is delightful to read that, on the first day, Bombardier has disclosed firm orders for ten of the CSeries at the Paris Air Show, with options for a further six. It is also noteworthy that Qatar Airlines CEO Akbar Al Baker, said, when asked whether he was considering another jet of similar size “The CSeries is a class above others in that category”.

It will be inspiring to dream of the industry’s ‘Big Three’.