It has long been said that if you build a better mousetrap, the world will come rushing in.” Unfortunately, that doesn’t necessarily apply when it comes to commercial jets.
Bombardier launched its C Series aircraft in 2008 to break Airbus and Boeing’s duopoly, but instead left Montreal-based manufacturer with billions in debt.
Airbus A220
Bombardier announced at England’s Farnborough International Air Show in 2008 that its C Series would be a game-changer in single-aisle commercial jet competition, promising it would become an A220 replacement within four years – and since A220 joined Airbus family, firm orders had doubled from 373 in 2016 to 785 at end May of this year. Initially viewed only as flightless mockup, Bombardier has proved itself since with substantial firm orders totalling 785 at end May 2019.
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However, the C Series continues to face challenges; both financially and due to production delays. Bombardier decided to seek assistance from Airbus by seeking financial and industrial partnerships as an attempt at giving their aircraft a fighting chance against its rivals.
Although some employees of Bombardier were reluctant about the sale, CEO Brian Kelly insisted it was necessary in order to save their program. Unfortunately, Bombardier simply couldn’t keep pace with competitors; taking on too much at once proved too much for it to handle.
Airbus partnership has generated new orders as well as renewed interest from some customers who had delayed purchasing A220 due to production delays. Lufthansa in particular was convinced by this development and is set to add A220-300 aircraft easily into their fleet going forward.
Air Austral, operating out of France’s Reunion Island in the Indian Ocean, announced today a Memorandum of Understanding with Airbus for 120 A220-300 aircraft: 60 firm orders, 30 options and 30 purchase rights. Delivery will start late 2020 with each aircraft configured with dual class seating 172 seats; these aircraft will be known by their name – Grasse for their location within Alpes-Maritimes region famed for perfume production worldwide.
airBaltic recently welcomed their 44th A220-300 aircraft. Registered as YL-ABQ in Riga and designed with 140 seats (38 in business class and 52 in economy), this plane is painted in the colors of JetBlue Airways who commissioned it.
Boeing 737 MAX
The Boeing 737 MAX is one of Boeing’s fastest-selling airliner franchises, designed for 150 to 200 passenger capacity markets and competing directly against Airbus’ A320neo family of single-aisle jets. Introduced in 2017 with over 4,700 orders placed thus far; but due to two fatal crashes within months many airlines have discontinued or postponed ordering this plane and this has caused its sales momentum to dramatically diminish.
Boeing has been experiencing significant difficulties, losing more new orders than it has fulfilled over the last several months and this could have an adverse impact on its profitability in future quarters.
Boeing’s reputation has taken an impactful hit as well: immediately following its initial crash, its stock dropped 8 percent. Citi analyst Jason Gursky estimates that each day planes remain grounded costs Boeing approximately $2.3 million per plane.
Boeing CEO Dave Calhoun is under tremendous pressure to fix the MAX, win back customers and restore Boeing’s culture of aviation excellence as soon as possible. Unfortunately, this process will take time. In the meantime, any slowdown in jet production could have adverse repercussions across global supply chains; that is why the FAA froze 737 production rates and killed plans for an Everett fourth line.
Ed Pierson, a former Boeing employee who raised safety concerns about the 737 MAX at an earlier Senate hearing, claimed retaliation by his former company after sending messages warning of what he called an unstable production line and warning that intense production pressure had forced workers to cut corners which could cause disaster.
These claims have spurred a new FAA investigation and Senator Tammy Duckworth has initiated her own probe to ascertain whether this information had been properly disclosed to pilots.
Boeing 777 MAX
Joseph-Armand Bombardier began creating engines to power snowmobiles in his garage in Quebec during the 1930s. These snowmobiles would allow priests and others to traverse towns and villages more easily due to snow cover. Soon thereafter, Bombardier’s Ski-Doo company would grow into one of the leading transport providers globally.
Bombardier of Montreal is currently fighting hard to keep its C Series program afloat amid fierce competition with Boeing and Brazilian competitor Embraer for control of the single-aisle commercial jet market. Bombardier’s decision to seek financial and institutional heft from Airbus suggests they have realized they cannot continue developing the C Series alone.
This deal, which needs regulatory approval, would bring the C Series under a larger competitor with greater clout at airline industry headquarters and could likely result in cost savings due to economies of scale and other efficiencies. While details are unknown at this point, plans include creating an Airbus A220 variant of the CS100 that differs slightly from A320 family of airplanes for easier operation and sales.
Boeing may not get what they had hoped from this deal; rather, the C Series plane may prove insufficient as leverage in their trade complaint against Bombardier following U.S. Commerce Department preliminary duties of up to 220% on it. These rates must still be finalized by U.S. International Trade Commission before final decisions can be rendered on these preliminary rates.
Airbus now has an opportunity to sell its C Series aircraft in the United States without being subject to tariffs levied on imports of Canadian-built jets, thus helping its program regain ground on global markets – though success ultimately depends on whether airlines decide to place orders for Canadian variants of popular aircraft models like this one.
Bombardier C Series
Bombardier’s C Series jetliner, launched from Montreal-based Bombardier and envisioned to break Airbus-Boeing’s duopoly on single-aisle jets, quickly became one of the biggest stories in Canadian business for years.
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Unfortunately, however, its development left Bombardier mired in billions in debt with sales struggles being among them; eventually leading them to hand it off to Airbus on July 1. This deal should allow Bombardier reestablish themselves as players within global aerospace markets once more.
Canadian government assistance was instrumental in helping Bombardier survive the C Series’s difficult early days, while receiving considerable investment from European firms. Unfortunately, though, this wasn’t enough to save its success as production delays and slow sales marred its viability with investors; following its acquisition by Airbus however, Bombardier is gaining ground against both Boeing and Embraer.
Bombardier announced its C Series at England’s Farnborough International Airshow as a flightless mockup in 2013, promising it would revolutionize the small, 100 to 150 seat airliner market segment. Boasting wide bodies and large windows, Bombardier intended for this aircraft to compete directly against Boeing’s 737 and Airbus A320neo models.
However, despite its incredible technology The C Series failed to capture the attention of airlines and was almost wiped out in the year the year 2015. Bombardier requested assistance from Airbus to survive; their agreement to partner was concluded in the year 2017 and refers the C Series aircraft as A220-100s and A220-300s, indicating this shift in ownership.
Tom Enders, Chief Executive of Airbus declared that the new brand could help boost sales, and reduce any anxiety about the future of Airbus. In addition, Enders noted that their collaboration will double the value of their partnership while ensuring that it meets its full potential.
The C Series boasts several advantages over its competitors, such as lower operating and maintenance fees. Their planes are lighter than rival models and utilize advanced materials that help lower fuel consumption and emissions; additionally they boast narrow fuselages that enhance efficiency of flight; furthermore the C Series boasts modern systems designed to reduce staff costs and enhance passenger experiences.
Frequently Asked Questions
Bombardier’s C Series aircraft, now called The Airbus A220, faced financial issues and production delays. But, after a collaboration with Airbus it has experienced a renewed demand and interest, especially from airlines such as Lufthansa as well as Air Austral.
Airbus partnership Airbus partnership has led to new orders as well as restored trust in the business. Airbus’ industrial and financial support has helped ease certain financial pressures imposed by Bombardier and led to an increase in sales and increased the interest of customers.
The C Series/A220 offers benefits like lower maintenance and operating costs as well as lighter weight, the latest materials to boost fuel efficiency and advanced systems that enhance the efficiency of operations and the experience of passengers.