Bombardier announced on 6th September that it was adjusting the 2016 delivery schedule for the C Series regional jet. For the full year, the company has adjusted its C Series delivery forecast from 15 to 7 aircraft “as a result of engine delivery delays by its supplier Pratt & Whitney”. The medium-term production goal of 90-120 aircraft per year by 2020 remains intact.
The company confirmed that the two CS100 aircraft in service with SWISS have collectively flown nearly 400 revenue-generating flights, and accumulated almost 600 flight hours. “The aircraft is meeting all expectations,” said Fred Cromer, President, Bombardier Commercial Aircraft.
A third CS100 aircraft is scheduled to be delivered to SWISS next month, and the larger CS300 variant is expected to enter service with airBaltic in the fourth quarter.
Bombardier notes that its liquidity position had been strengthened by the recent receipt of the second and last $500m installment of the Government of Québec’s investment in the C Series aircraft programme.
Bombardier declared that the C Series delivery adjustment would result in lower revenues at Bombardier Commercial Aircraft for the year without affecting EBIT materially. On a consolidated basis, 2016 revenues and EBIT guidance are reaffirmed. As a result of the delay, the Company now expects to be close to the lower end of the $16.5 to $17.5bn revenue guidance range, and free cash flow usage is expected to be in the range of $1.15 to $1.45bn. EBIT is expected to be at the upper end of the $200 to $400m range.
In related news, the company recently said it would be slowing production of its Global 5000 and 6000 business jets in 2017 as a result of weak market demand.