The provisional Quebec government will invest in Bombardier's troubled CSeries airliner program, which will enable the company to co...
The provisional Quebec government will invest in Bombardier's troubled CSeries airliner program, which will enable the company to complete certification and begin delivery of the new generation single aisle jet.
Bombardier has entered into a memorandum of understanding which contemplates a $1.0 billion investment by the Ministère de l’Économie, de l’Innovation et des Exportations du Québec (through Investissement Québec) (the Government) for a 49.5% equity stake in a newly-created limited partnership (the Investment) to which would be transferred the assets, liabilities and obligations of the C Series aircraft program.
This newly created limited partnership will be owned 50.5% by Bombardier and, as a subsidiary of Bombardier, will carry on the operations related to the Corporation’s C Series aircraft program.
The proceeds of the Investment will be used entirely for cash flow purposes of the C Series program.
The definitive agreements are expected to be entered into on or before January 1, 2016, or such other date as the Corporation and the Government shall agree, and disbursement of the Investment and issuance of the warrants will occur over two equal installments, expected to take place on April 1, 2016 and June 30, 2016, respectively.
The investment will keep the CSeries program in the Province of Québec, for atleast another 20 years.
The bail out comes after a talk with Airbus for a controlling stake in the Cseries program in return for investment, collapsed.
More than 2800 flight-test hours have been accumulated on the CS100 aircraft, representing 97% of the flight test program, and overall, more than 90% of the CS100 certification program is complete. The certification configuration has now been frozen. The CS100 aircraft has completed all noise performance testing, confirming it is the quietest in-production commercial jet in its class.
The type certification for the CS100 aircraft is targeted for completion by the end of 2015. The CS100 and CS300 aircraft have over 95% parts commonality, as well as the same type rating.
The CS300 aircraft’s certification is over 60% complete and type certification is expected to follow approximately six months after that of the CS100 aircraft. The EIS of the CS100 aircraft is expected to occur in the first half of 2016 with Swiss International Air Lines (SWISS) as the first operator.
SWISS is currently working with Bombardier’s Customer Services training crews and readying its operations for the EIS of the CS100 aircraft.
Flight testing activities on five CS100 FTVs are ongoing with multiple milestone tests completed and all systems are performing well. Passengers flew on board the CS100 aircraft for the first time as part of the cabin testing program.
The first CS300 FTV has been performing planned tests, such as flutter, handling, cruise performance, cross-wind takeoff and landing, braking and anti-skid testing. All the aircraft are displaying a high level of reliability and the aircraft performance and test results are in line with expectations.
Assembly of the second CS300 FTV is ongoing at the C Series aircraft assembly facility in Mirabel, Québec. It is now powered-on and is expected to come off the production line later this year.
Flight and aircraft structural test performance results continue to exceed original targets for fuel burn, payload, range and airfield performance.
During the fourth quarter of 2015, the final phase of flight testing began when the first production CS100 aircraft commenced function and reliability testing. To complete these tests, the aircraft will operate on a schedule similar to that of a commercial airline. More production aircraft are moving down the assembly line, including units for launch operator SWISS.
