Bombardier received a significant LOI for the CSeries today from Russia, home of the competing Sukhoi Superjet. This order, from Ilyushin Finance, is for 3 CS100 and 7 CS300 models plus ten options, and purchase rights for ten additional aircraft, or 30 in total if all options and future rights are taken up. This win indicates that Russian airlines are continuing to update their fleets with western aircraft. Alexander Rubitsov, General Director of Ilyushin Finance, indicated that the aircraft would likely replace Tupolev 154 aircraft in service with several airlines.
With Bombardier projecting 20% lower fuel costs and 28% lower maintenance costs than today’s aircraft, it is the efficiency leader for narrow-body aircraft, including the A320neo family and Boeing re-engined 737. “If the aircraft is as Bombardier says, it will be great and have a great future.” said Rubitsov.
The CSeries and Irkut MS-21 both utilize the PW1000G geared turbofan engine, the most efficient and environmentally friendly engine for narrow-body aircraft. With engine commonality, orders for the larger MS-21 will also be forthcoming from Ilyushin Finance as that aircraft moves closer to production. Ilyushin finance views the CSeries as well positioned between the Antonov An-148 and An-158 regionals and the larger Irkyt MS-21, and believes it has a strong future in the Russian market. With Tu-154s in service in other countries as well, could Ilyushin Finance lease CSeries aircraft to other countries, perhaps even to Cubana in the future?
With another 10+10+10 order, the CSeries program is now beginning to build momentum prior to its scheduled 2013 entry into service, with orders from Brathens, Gulf Air, Korean and an additional unannounced middle eastern customer earlier this year. If Delta chooses the CSeries, and their decision is due shortly, early delivery positions for the CSeries could be quickly filled.
There is a pattern developing here.
Europe with Lufthansa/Swiss, the Middle East with Gulf Air, the USA with Republic, Asia with Korean Air. Now Russia with Ilyushin Finance. The orders might be coming in slowly and in small quantities, but what is interesting is that they are originating from all over the world.
Before the end of the decade we can expect the CSeries to be flying on every continent.
Sooner or later the Chinese will have to buy the aircraft, not only because the fuselage is manufactured there but for the simple reason that they have so many big cities that will need to be interconnected when the new infrastructures will have been completed.
In the booming Middle East market we all anticipate a substantial Qatar Airways order to materialize in the near future, especially if Gulf Air is buying the aircraft.
In United States Bombardier already has a large customer base that could be interested in the CSeries, plus a number of brand new customers that could potentially be attracted by the economic and environmental advantages that this new aircraft has to offer.
And when the CSeries will enter service with Swiss, if the other major European airlines want to remain competitive they will have to get onboard, so to speak.
On the long term the fuel prices can only go up and we can also expect the environmental constraints to get tighter. Not only that, the passengers will want more comfort, especially after having experienced the A380 and B787. In all cases the CSeries is well positioned to meet the new requirements.
We are still 2 1/2 years from EIS, so there is no rush for Bombardier. All they have to do for now is to make sure the aircraft is on time and on spec.
But if I was an airline manager I would want to secure my positions while they are still available. Because my feeling is that when they start to go they will go fast!