Mark Collins – Saving Bombardier’s CSeries Jetliner: Delta? Iran?

Further to this post,

Feds Getting Set to Bail Out Bombardier

Ottawa will be under big pressure to help the company get the price right.

1) Delta puts on the squeeze:

Bombardier Rises as Delta Shows Interest in C Series Model

  • Jet is `competitive’ at the right prices, airline CEO says
  • Planemaker hasn’t logged new C Series order in 16 months

Bombardier Inc. jumped the most in a month after Delta Air Lines Inc. said the carrier is taking a “serious look” at the Canadian company’s C Series models, signaling new prospects for a jet mired in a sales drought.

“At the right price, it’s quite a competitive airplane, particularly given the engine technology,” Delta Chief Executive Officer Richard Anderson said on an earningsconference call. Bombardier brought the C Series to the airline’s Atlanta base before Christmas, Anderson said Tuesday [Jan. 19].

Bombardier shares advanced 3.4 percent to C$1.21 after rising as much as 9.4 percent…

Fleet decisions by Delta are closely watched in the industry since the second-largest U.S. carrier has a reputation for spotting hidden value in aircraft. United Airlines also is studying the jet [more here], as well as models from Boeing and Embraer SA.

Delta is considering the C Series and other narrow-body models as it replaces small 50-seat aircraft flown by its regional affiliate airlines, said Delta spokesman Trebor Banstetter. A C Series order isn’t imminent, he said…

2) Plus the Persian lure:

Minister sees Iran thaw as opportunity for Canadian aerospace industry 

Federal Economic Development Minister Navdeep Bains says he hopes Iran’s growing appetite to purchase hundreds of civilian aircraft on the world market translates into an opportunity for Canadian aerospace, but the Trudeau government hasn’t said when or how Ottawa might roll back economic sanctions on Tehran to make this possible.

Foreign Minister Stéphane Dion would only say the government does not want to leave Canadian companies at a disadvantage, but he’s not yet revealing how broadly Canada will act to repeal barriers to trade with Iran, a country of 80 million.

The U.S. and the European Union have just lifted many sanctions against doing business with Iran after United Nations inspectors verified Tehran is complying with an accord to curb parts of its nuclear program. The Trudeau government is now confronted with the risk that Canadian companies will be left behind in the rush to sell to Iran.

One of the clearest opportunities presenting itself could benefit Montreal-based aircraft maker Bombardier. The company is now struggling with insufficient orders for its new C Series jets and has asked the federal government for financial assistance above the $1.3-billion offered by the province of Quebec.

Iran’s state-run Mehr news agency has announced the country is raising the number of civilian aircraft it wants to acquire to at least 581 planes over the next decade – up from 400. This is a market opportunity for competitors such as Canada’s Bombardier, Europe’s Airbus [plan to sell Iran 114 planes just announced], U.S.-based Boeing and Brazil’s Embraer…

How low can fed money help Bombardier go?  Lots of sweet Export Development Canada money amongst other things?

Mark Collins, a prolific Ottawa blogger, is a Fellow at the Canadian Global Affairs Institute; he tweets @Mark3Ds

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10 thoughts on “Mark Collins – Saving Bombardier’s CSeries Jetliner: Delta? Iran?”

  1. Meanwhile Bombardier has had boots on the ground in Iran!

    ‘Bombardier eyeing ‘significant opportunities’ in Iran

    A source tells CBC News that Bombardier officials have made two visits to Iran in the past six months to assess the business climate in anticipation of the post-sanctions world…

    Bombardier’s Delabarrera said her company sees opportunities in the single-aisle regional jet and the longer range C Series plane, which would allow Iranian carriers to operate domestic routes and flights throughout the Middle East.

    “There is definitely a requirement for a major fleet renewal and growth strategy in the country,” she told CBC News in a telephone interview from Toronto…

    Iran’s capital, Tehran, is also upgrading its rail services, and Bombardier’s transportation division is also looking into that market…’
    http://www.cbc.ca/news/business/iran-bombardier-business-opportunities-1.3410022

    Earlier on Bombardier rail:
    https://cgai3ds.wordpress.com/?s=bombardier+rail

    Mark Collins

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