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 Visibly relieved after landing the first tentative CSeries order in
16 months, and the first from a top flag carrier since 2011,
Bombardier basked in attention at the Singapore Airshow as larger
rivals drifted home with a handful of orders.
Bombardier announced the 45-aircraft order in Montreal on Wednesday,
sending its shares up as much as 30 percent and overshadowing plans
to cut 7,000 jobs.
"The competition has been fierce but the fact is, CSeries is a
reality," said Colin Bole, senior vice president for sales and asset
management at Bombardier Commercial Aircraft.
"It can no longer be dismissed as an orphan aircraft (as) we have
heard from our competitors. It is there, it has customers and
customers will draw customers," he said in interview.
Once finalised, the deal will leave Bombardier 12 planes short of
its target of 300 firm orders by the time the delayed CSeries enters
service, due in the second quarter.
That goal has long appeared elusive as Bombardier met delays,
technical problems and nervous buyers.
It remains in talks with United Airlines after losing a recent
contest there to Boeing, Bole said.
It is talking to other major U.S. carriers and has its sights on
another win before the Farnborough Airshow in July.
"I certainly hope so...it is the goal," Bole said, asked about
getting a new deal by the UK show, adding "we have a number of
transactions close to finalization."
NO SLAM DUNK
Bole said it was too early to say how the Air Canada deal would be
financed but dismissed suggestions by some analysts that it marked
hidden support from the Canadian government.
"There is no government subsidy or funding whatsoever. It is a
perfectly normal commercial deal," he said.
"I can assure you Air Canada is no slam-dunk customer."
Bombardier's home win follows a tough four-way competition against
Airbus, Boeing and Brazil's Embraer, each of which have aircraft in
Air Canada's portfolio.
It reflects a planned assault by a team of former leasing executives
brought in by Bombardier to reinvigorate marketing.
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"It has been tough. We were always confident.. but it was a matter
of getting out of the starting blocks and I think this is exactly
it," Bole said.
Although announced elsewhere, it effectively made Bombardier the
clear air show winner, but analysts said it would not remove
challenges for a plane which has struggled to break into the main
jet market dominated by bigger players.
The 110-130-seat CSeries sits between the 106-seat Embraer 195 and
the main 150-160 seat models of Airbus and Boeing.
Critics say the CSeries is undersized but Bombardier says it is
addressing a gap in the market deliberately played down by Airbus
and Boeing, which make better margins as airlines trade up.
"Airbus and Boeing have been pretty successful in brainwashing
airlines to think they need larger aircraft," Bole said.
While insisting jet markets remain robust, he said Bombardier could
benefit from any downturn because it would encourage airlines to buy
less risky, smaller models.
But Airbus and Boeing say the market has voted in favor of their
upgraded narrowbody models, selling in the thousands.
Bole said the CSeries was not suffering engine problems seen on the
Airbus A320neo, even though they share similar engines from Pratt &
Whitney. Criticism of Pratt & Whitney from Qatar Airways dominated
this week's air show, but the engine maker said current teething
problems were being resolved.
(Reporting by Tim Hepher; editing by Adrian Croft)
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