Posted on: 08 September 2016 by Mark Howells
Bombardier has announced its 2016 C Series delivery forecast has been decreased from 15 to 7 aircraft as a result of engine delivery delays by its supplier Pratt & Whitney (P&W).
“We are working very closely with Pratt & Whitney to quickly address this supplier ramp-up issue and to ensure we have a strong supplier base to support our long-term growth objectives,” commented Fred Cromer, president of Bombardier Commercial Aircraft. “We are very confident in our production ramp-up plan, including our ability to meet our production goal of 90 to 120 aircraft per year by 2020.”
The OEM has said the C Series delivery adjustment will result in lower revenues at Bombardier Commercial Aircraft for the year. As a result of the delay, the company now expects to be close to the lower end of the $16.5 to $17.5 billion revenue guidance range, and free cash flow usage is expected to be in the range of $1.15 to $1.45 billion. EBIT is expected to be at the upper end of the $200 to $400 million range.
Elsewhere, Bombardier confirmed the two CS100 aircraft already in service with SWISS have collectively flown nearly 400 revenue-generating flights, and accumulated almost 600 flight hours.
“We are very pleased with the performance of the C Series during its entry-into-service with our launch customer SWISS,” stated Cromer. “The aircraft is meeting all expectations and clearly demonstrating that it is the best-performing and most efficient aircraft in the 100- to 150-seat class.”
A third CS100 aircraft is scheduled to be delivered to SWISS next month, and the CS300 – the larger C Series variant – is expected to enter service with airBaltic in the fourth quarter.
Bombardier recently announced it has received the second and last $500-million installment of the Government of Québec’s investment in the C Series aircraft programme, further strengthening its liquidity position.
The company expects to end the year with a strong liquidity position and remains on track to achieve both its 2018 cash flow neutral goal and its 2020 turn-around plan objectives.