Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
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- New RISE powerplant benefits from decades of GE research and development June 5, 2025
- Engine makers emphasizing durability, reliability June 4, 2025
- Boeing CEO: Lessons learned are key to certification of 737-7/10 and 777X June 2, 2025
- Digital twin is a key to JetZero’s hopes for Blended Wing Body entry June 2, 2025
Bombardier 3Q2016 earnings: revenue down, performance up
Nov. 10, 2016, (c) Leeham Co.: Bombardier reported 3Q2016 and nine months results reflecting lower revenues as downsizing businesses and cost-cutting took effect.
Revenues for the current quarter were $3.7bn vs $4.1bn. For the nine months, revenues were $12bn vs $13.1bn. Earnings Before Interest and Taxes (EBIT), and before special items, were $87m vs $75m for the quarter. Losses are special items were $94m and $4.9bn.
For the nine months, EBIT was $323m this year vs $538m last year. Losses after special items were $722m and $4.66bn.
BBD burned through $320m in cash in the quarter vs $816m a year earlier. For the nine months, the cash burn was $1.56bn vs $2.37bn.
Clouds overhang Bombardier ahead of earnings call
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Introduction
Nov. 9, 2016, © Leeham Co.: Bombardier reports its 3Q2016 and nine month earnings Thursday and as the year prepares to enter its last 45 days, disappointment 
hangs over the company and the stock.
Summary
- Despite winning firm orders for the CSeries from Air Canada and Delta Air Lines early in the year, no other new orders have been announced.
- Deliveries of the CSeries will only be about half those projected, due to engine delivery delays from Pratt & Whitney.
- The $1bn investment from the federal Canadian government hasn’t been achieved, but an announcement may come as early as next week that an agreement has been reached.
- Boeing revised the design of the 737-7 to sit “right on top of” the CS300.
- Embraer (Brazil) is taking the government bailout of CSeries to the World Trade Organization (WTO) in inquiries, with the USA lending support.
Flying the CSeries
By Bjorn Fehrm
November 09, 2016, ©. Leeham Co: After my preparations at Bombardier (BBD) in Montreal, it was time to take an early flight to BBD’s test center in Wichita (KS) the next day. We spent the afternoon in briefings and went flying Wednesday.
Figure 1. FTV8 (CS300) and FTV2 (CS100) at BBD test center. Source: Leeham Co.
The trip to Wichita was with American Airlines regional carrier American Eagle on a BBD CRJ200. Within two days, I would experience the first and smallest regional jet, the CRJ200 (albeit in coach) and Bombardier’s latest and largest jet, CS300, which encroaches on the turf of the single aisles as a direct competitor to the Airbus A319 and Boeing 737-700/7.
At the test center, just off the runway to Wichita International, I would be joined by Mike Gerzanics, who was test flying for FlightGlobal. We last met when we test flew the Airbus A350 in Toulouse in Spring 2015. Read more
CSeries out of London City Airport
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Introduction
By Bjorn Fehrm
November 07, 2016, ©. Leeham Co: When we visited Bombardier (BBD) in Montreal recently, we learned new information about how the CSeries would operate from London City Airport. This unique airport served 4.3m passengers last year and have expansion plans for more passengers up to 2030.
Bombardier’s first CSeries operator, SWISS Airlines, configured all its CS100 aircraft to operate from London City. This requires special engine selections and certification of aircraft and crews. The certification of the aircraft, CS100 is ongoing and will be finished at the turn of the year.
Figure 1. London City Airport, housed in the docklands of London’s east end. Source: Wikipedia.
We take a look at what is required for London City and how far the CS100, appropriately configured, can serve destinations from this special airport. We will use a combination of Bombardier data and our own performance model to reach the conclusions.
Summary
- London City Airport put special requirements on the aircraft serving it.
- The CSeries will be one of the most potent types allowed at London City.
- We use BBD data and our performance model to understand at what range destinations can be served.
Preparing to fly the CSeries
By Bjorn Fehrm
November 03, 2016, ©. Leeham Co: We were invited to Bombardier (BBD) in Montreal last week for a series of special events.
The visit had three purposes: attend the roll out of airBaltic’s CS300 (reported here), prepare to fly the CSeries in the simulator and finally to test fly the aircraft at BBD’s Wichita (KS) test flight facility.
Figure 1. Training to fly the CSeries at the Mirabel based Simulator. Source: Leeham Co.
It was mid-October when the chance came to test fly the CSeries. The ideal time would be October 24-26, just before the test aircraft, FTV8 (the CS300 route proving aircraft), would take off for the Airshow China in Zhuhai.
The testing would have three parts:
- Study the aircraft via BBD’s online training program.
- Fly the aircraft in the CSeries simulator in Mirabel, close to Montreal.
- Fly FTV8 from BBD’s test flight station in Wichita (KS).
Visit to Bombardier for airBaltic CS300 roll-out
By Bjorn Fehrm
October 27, 2016, ©. Leeham Co: This week we have been at Bombardier (BBD) Mirabel Airport outside Montreal to observe the roll out of the airBaltic CS300 CSeries model and to later test fly the aircraft at BBD’s Wichita facility.
The preparation for the test flight and the flying experience will be described in subsequent articles.
Figure 1. airBaltic’s first CS300 rolled out for local media to see. Source: Leeham Co.
airBaltic will take delivery of the first CS300 by the end of November. This event was for Baltic media to see the aircraft and its final livery for the first time. It was fresh from the paint shop. The group also was able to see the CSeries Final Assembly Line (FAL) and to ask questions to airBaltic CEO Martin Gauss.
Seventeen new, derivative aircraft to see EIS through 2020
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Introduction
Delivery of the first Bombardier CS300, to AirBaltic, next week kicks off entry-into-service for 17 airplanes through 2020. Bombardier photo.
Oct. 20, 2016, © Leeham Co.: The past decade was a hive of activity as the Big Four OEMs launched new airplane programs and put the aircraft into service.
Airbus launched the A320neo, A330neo and A350 families. The A330neo is under production; the other two entered service early this year.
Boeing launched the 787 in late 2003 (outside the decade mark), rolled it out in 2007 and entered service with it in 2013. The 737 MAX was launched in 2011 and is in flight testing. The 777X was launched in 2013; components are in production.
Bombardier launched the CSeries in 2008; it entered service this year, after three years of delays.
Embraer launched the E-Jet E2 om 2013. Flight testing began this year.
New Entrants
These were supplemented by new entrants into commercial aviation: COMAC with its C919; Irkut with the MC-21; and Mitsubishi with the MRJ90. Of these, only the MRJ90 is flying. After more than two years of delays and several false starts, flight testing began in earnest this week at Moses Lake (WA) with FTA-1 (Flight Test Aircraft 1).
Development and new program launches have slowed, but the next decade is hardly going to be idle.
Summary
- Seventeen new aircraft or derivatives are scheduled to enter service through 2020.
- Five potential derivatives might see EIS through the same period.
- Three to five new or potential derivative aircraft might see EIS 2021-2025.
Pontifications: A good week for Boeing wide-bodies
By Scott Hamilton
Oct. 17, 2016, © Leeham Co.: Boeing had a very good week for wide-body orders last week. It recorded 42 orders for the 787 and 10 for the 777-300ER.
Thirty of the former and all of the latter came from Qatar Airways. There were 12 787 orders from “Unidentified,” which in this case was from China Southern Airlines. These were announced Wednesday but too late to show up on the weekly orders update posted Thursday.
787 Book:Bill
For the year, Boeing has 61 net orders for the 787, a healthy increase since the end of June, when the book-to-bill was a paltry 0.25 YTD. Even at 61, this is still a book:bill of just 0.42 for the 787, which has not had a book:bill of more than one since 2013. This means Boeing continues to burn off the backlog faster than it is booking new orders.
But it’s welcome news nevertheless in a year when there has been a dearth of wide-body orders.