Bombardier also announced today that Atlanta-based Delta Air Lines, Inc. (Delta) has placed a firm order for 75 CS100 aircraft with options for an additional 50 CS100 aircraft. Based on the list price, the firm order is valued at approximately $5.6bn. Deliveries of the state-of-the-art aircraft to Delta are scheduled to begin in 2018. As a result of this order, the program is expected to enter into service with a backlog of more than 300 aircraft or up to 800 aircraft including all options and commitments. The other agreements consist of conditional orders, letters of intent, options and purchase rights.
The fact that the order is for CS100 will have many looking for details. Of the 250 backlog now, CS100 is 21.2% of the business. Post the Delta order, this rises to 29.4%. The order is a major boost for the CS100 and indeed the entire project.
Delta reported that with the CS order, it will no longer induct the E-190. That is a huge statement. Today’s news brings Bombardier’s program a crucial fourth tier one customer. This is the critical mass the big lessors have been waiting for. And more than a few customers, Bombardier has described as “waiting in the wings”.