Published: Sat, November 04, 2017
Economy | By Melissa Porter

Airline to buy 31 C-Series Bombardier planes

Bombardier said engine delivery delays from Pratt & Whitney will hinder full-year C Series deliveries too, with eight to 10 expected for the fourth quarter, and 20 to 22 aircraft delivered for the year in total, down from a previous plan for around 30.

United Technologies Inc., the maker of the Pratt & Whitney geared turbofan engines, has held back some engine shipments to Bombardier and Airbus so it could offer spare engines to airlines that have had problems with the engines used on aircraft in service.

The firm has announced an order for 61 C Series aircraft, including 31 from a European operator.

Bombardier said the delays would raise its free cash flow usage for 2017 to about $1 billion, at the higher end of its forecast range.

In early trading in Toronto, Bombardier's share, gaining close to 3 % 2.86 $.

The sale is the first announced since Airbus agreed to acquire a controlling stake in the C Series programme last month and though the figures indicate a net loss of US$117m on turnover of $3.8bn, chief executive Alain Bellemare was upbeat.

Based on the list price, a firm order would be valued at around $2.4bn (£1.8bn), which would increase to around $4.8bn should all 30 options be exercised.

Bellemare said the company was weighing strategies like forming partnerships to boost volumes of its smaller aerostructures division, which makes components for planes like the CSeries.

Bombardier, which is in the middle of a five-year turnaround plan after facing a cash crunch in 2015, delivered 31 business jets in the third quarter ended September 30, compared with 36 in the same period last year.

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