Manufacturer may drop all-new engine requirement
Bombardier is revising the CSeries business case used by the company's board of directors in March to give authorisation to offer the potential new product line to airlines and risk-sharing partners.
Core elements of the original business case – delivering 110- and 130-seat narrowbodies by 2010 with a new centreline engine providing a 15% cut in overall operating costs – are now described as "goals" by company executives.
At the same time, Bombardier chief executive Laurent Beaudoin has revealed the company is still drafting parts of the CSeries business case to meet a launch decision window that has now stretched from September to November. The manufacturer originally planned to launch the programme at the Paris air show. "Fall is still our objective for a CSeries launch decision," says Beaudoin. "We must ensure we implement agreements with suppliers and the desired orders and complete the business plan for the CSeries."
John Paul MacDonald, senior vice-president for communications, says the CSeries business case is evolving as the company moves from the authorisation to offer phase to the launch decision. To receive launch approval, Bombardier executives will present an updated version of the CSeries business case to the board. Two programme objectives – developing an all-new centreline engine and the 15% improvement in operating cost – are being reviewed, says MacDonald.
Since its inception, the programme has been dogged with questions about its engine supplier. Negotiations with engine consortia International Aero Engines and CFM International broke down in April. Bombardier now says that it is in talks with individual engine companies, although only Pratt & Whitney has confirmed its involvement. Beaudoin says Bombardier is "more comfortable" dealing with individual engine companies because it has little experience of negotiating with consortia.
Some of the key elements of the CSeries business case, such as the financing strategy, appear to be surviving. Bombardier's goal is to evenly split projected $2.1 billion development cost among three parties – the company, participating governments and risk-sharing partners. The company has clinched deals with government financing backers in Canada and the UK. Beaudoin says he is confident the supplier base will agree to commit the final third.
STEPHEN TRIMBLE/WASHINGTON DC
Source: Flight International
