Bombardier has finally disclosed a closely held secret that it has pierced the crucial Chinese market by identifying that one of country's top leasing companies is the previously unidentified customer for up to 30 of its new CSeries aircraft.
Based on list prices, the initial contract would be worth about
"Given ongoing high fuel prices and increased environmental concerns, older and less efficient aircraft represent one of the greatest challenges to airlines," said CLC chairman
"Following an in-depth analysis of existing and re-engined aircraft, the CSeries family of airliners, with its unmatched economics, advanced technology, excellent operational flexibility, as well as its outstanding performance seemed like the obvious choice and shows great potential for operators in
The announcement was made in
"This announcement, witnessed at the highest levels by both governments, reflects extremely well on the co-operation between Bombardier and
"With the aircraft having recently completed its historic maiden flight, the worldwide momentum of interest for the CSeries aircraft program continues to grow and we are pleased that yet another leading lessor has placed its trust in the CSeries airliner," Arcamone said.
Analysts welcomed the announcement, saying the high-profile event suggests that the options will likely be converted to firm orders and that other Chinese customers will come on board.
"With a clean first flight and what we expect to be further orders announced as flight test data is compiled over the next several months, Bombardier continues to move in the right direction with the CSeries program,"
He said the order should boost investor sentiment and increase analyst share price targets for the
Spracklin said the addition of a Chinese leasing company is important because these types of buyers usually wait for confirmation of sufficient demand before buying an all-new aircraft.
"We anticipate that this will be the first of several orders that will ultimately see Chinese carriers operating CSeries aircraft."
"We continue to believe Bombardier's backlog is poised for growth, and we are confident in the company's ability to take advantage of many near-term opportunities in transportation and aerospace (including substantive potential orders from
Bombardier has focused a lot of its attention on the Chinese market. Part of the aircraft's fuselage will be built in
The second phase of a co-operation agreement signed last June is designed to improve the competitiveness of both aircraft by maximizing cost savings and market share, while allowing customers to gain cost benefits from operating both aircraft.
Some initial production problems forced Bombardier to temporarily move production of the mid-fuselage section from
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