Delta Order Boosts Bombardier's CSeries

April 28, 2016

Bombardier has won an order for 75 CSeries passenger jets from Delta Air Lines, worth USD$5.6 billion at list price.

The order marks a turning point for Bombardier as it strives to break into the fleets of major airlines globally and serve a niche market for 100-seat aircraft that larger rivals Boeing and Airbus have neglected.

Quebec-based Bombardier said the deal included an option for Delta to buy an additional 50 CS100s. Delta also has the option to convert a number of its orders into the larger CS300 variant at a later date.

For Delta, the deal allows it to phase out 50-seat aircraft that it contracts regional airlines to fly under its Delta Connection brand. The larger CS100s burn less fuel per passenger and have room for two cabin classes rather than one, giving Delta an opportunity to up-sell customers to business class.

The CSeries deal is a setback to Boeing which had planned to sell Delta 20 used Embraer jets traded in by Air Canada as part of an earlier order. Delta confirmed that it no longer plans to introduce the E190s into its fleet as planned.

The Delta order, coupled with the Air Canada commitment from early this year, puts Bombardier's CSeries order book above the company's target for 300 orders before the jet enters commercial service this summer.

(Reuters)