Sorry, Kansas City: Plane Will Be Built In Mirabel

Bombardier announced Sunday its Board of Directors has granted approval for the launch of the CSeries family of five-abreast commercial airliners, intended to offer airlines superior economics, performance, environmental and passenger-oriented improvements for the next quarter century.

Entry into service is scheduled for 2013. German carrier Lufthansa will be the aircraft's launch customer, signing a 60-plane Letter of Intent that includes 30 options.

"Today is a great day for Bombardier, our customers, our employees, our shareholders and our suppliers," said Pierre Beaudoin, Bombardier President and CEO during a press event at the Farnborough International Airshow. "I am proud to say that we have met our business plan objectives: a technologically advanced aircraft family, a strong pipeline of orders and repayable investments with governments and agreements with key suppliers. With the latest in system technologies and aerodynamics, the CSeries family of aircraft will revolutionize the economics and network strategies for airline operations in the 100- to 149-seat commercial market. It is another example of our commitment to designing and manufacturing innovative aircraft that will ensure our continued industry leadership."

"At Lufthansa, we are committed to a balance between commercial success, environment and business policies oriented toward sustainability," added Nico Buchholz, Senior Vice President, Corporate Fleet, Lufthansa. "Our initial evaluations of the CSeries family of aircraft and discussions with Bombardier over the last few months have evolved and made us believe that the CSeries family of aircraft clearly meets our stringent requirements for sustainable fleet development, both in terms of environmental and commercial requirements, and flexibility for the future. We are proud to be a part of its launch."

Bombardier received formal approval from its Board to offer the plane for sale in February, falling just short of officially launching the program. To be powered by the Pratt & Whitney Geared Turbofan, the CSeries is intended to plug a gap in the 100-149-seat segment left by the retirement of Douglas DC-9s and older MD-series airliners... and do it much more efficiently than those planes.

 The planemaker estimates the need for some 5,900 aircraft fitting the CSeries's template over the next 20 years. Since the demise of the last five-abreast airliner, the Boeing 717, that market has been served by smaller variants of Boeing's 737, and the Airbus A320 family... which means Bombardier appears to be priming for what looks to be a very interesting fight.

Bombardier also used its pre-opening-day press event to announce the selection of Mirabel as the final assembly location for the CSeries. The city of Kansas City, MO was also technically in the running for the assembly facility, though in May state lawmakers scaled back the incentive program meant to lure the planemaker there, making the Mirabel choice all-but-inevitable.

"The final assembly facility will be located in Mirabel, in the greater Montreal area, thus ensuring Bombardier's access to a skilled aerospace workforce and to an established aerospace education system," said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. "Additionally, the manufacture of the aircraft's aft fuselage and cockpit will take place at our Saint-Laurent facility, near our new product development centre, home to the growing CSeries team."

Bombardier's facility in Belfast, Ireland will be home to the design and manufacture of the CSeries aircraft wings.

Bombardier says it received offers of repayable investments from the governments of Canada and Quebec, as well as Northern Ireland and British Government Departments to have CSeries work performed in those respective countries. The total repayable investments will cover approximately one-third of the expected R&D costs, with Bombardier and key suppliers each chipping in 1/3 as well.

"The CSeries aircraft program is a compelling business proposal for both Canada and Quebec as well as Northern Ireland and British Government Departments. It involves, among other things, the development of new technology, creation of employment and further consolidation of Canada's leadership in the aerospace industry. Our partners, including governments and suppliers, will benefit from the program's success," added Hachey.

FMI: www.bombardier.com, www.lufthansa.com