Bombardier wins Braathens Leasing order for 10 CSeries aircraft
Published: June 2, 2011
Bombardier CSeries-100. Photo: Courtesy, Bombardier.
Braathens Leasing Limited, a subsidiary of Braathens Aviation of Sweden, placed a firm order for five Bombardier CSeries100s and five CSeries300s valued at $ 635 million at list prices, providing a boost to the Canadian manufacturer’s narrowbody aircraft program ( ATW Daily News, April 8 ). Braathens also took options on an additional 10 CSeries aircraft, potentially lifting the value of the order to $ 1.37 billion at list prices.
Meanwhile, Bombardier on Wednesday reported $ 220 million in net income for its fiscal first quarter ended April 30, up 13.4% over a net profit of $ 194 million in the year-ago period. Revenue rose 9.4% year-over-year to $ 4.66 billion.
Bombardier said the 10 CSeries ordered by Braathens will be operated by Braathens Aviation subsidiary Malmo Aviation from its base at Stockholm Bromma. According to the manufacturer, Malmo currently operates 12 jet aircraft and “intends to renew its fleet and explore new business opportunities with its CSeries aircraft starting in 2014.”
The new order increases firm commitments for the CSeries to 100 and raises the number of CSeries customers to four. Other customers include Republic Airways Holdings (40 CS300s on order), Lufthansa (30 CS100s) and Lease Corp. International Group (17 CS300s and three CS100s).
Bombardier Aerospace’s fiscal first-quarter revenue heightened 11.7% year-over-year to $ 2.19 billion and unit EBIT lifted to $ 141 million from $ 133 million in the prior-year quarter. President and CEO Pierre Beaudoin said, “Our commercial aircraft segment, although slower to recover [than the business aircraft sector] , is seeing an improved level of interest from customers.”
The company delivered 23 commercial aircraft in the three months ended April 30, up from 16 in the prior-year period. “Although there has been a recovery for mainlines, the recovery is slower for regional airlines,” Bombardier stated. “The price of oil is expected to drive airlines to accelerate the retirement of older, less efficient aircraft, increasing the demand for new-technology, more fuel-efficient aircraft, which positions us well with our portfolio of new aircraft.”