Bombardier delivers 17 CSeries in 2017 following engine delays

Bombardier delivers 17 CSeries in 2017 following engine delays
MONTREAL, Jan 3 (Reuters) - Canada's Bombardier Inc delivered 17 CSeries jets in 2017, missing its latest target of 20 to 22 planes, but is confident it can achieve its 2018 target of 40 deliveries, a company spokeswoman said on Wednesday, after engine delays hampered its ability to deliver orders last year.

More details on Bombardier's 2017 deliveries will be disclosed when the company announces its financial results in February, spokeswoman Nathalie Siphengphet said by phone.

The 110-to-130 seat CSeries jets sell for between $79.5 million and $89.5 million based on list prices.

Investors closely watch figures on aircraft orders and deliveries to help them accurately estimate revenues since airlines make the bulk of payments when planes are delivered.

Bombardier in November cut its CSeries delivery guidance by about a third, from 30 planes to a range of 20 to 22, citing delays from engine supplier Pratt & Whitney, a division of United Technologies Corp.

Pratt & Whitney in October disclosed that it had slowed production of its Geared Turbofan (GTF) to make them more durable after some of its customers had problems with the line of fuel-saving engines used in narrowbody jets.

Bombardier is "confident" in the fixes from Pratt & Whitney and expects to meet its forecast of delivering 40 CSeries planes in 2018, Siphengphet said.

Two aerospace analysts told Reuters they believe Bombardier's goal of 40 deliveries is achievable, provided the supply chain woes are indeed fully fixed.

"So far it looks OK, but again, it's very early," said AltaCorp analyst Chris Murray by phone.

In late December, Bombardier said it finalized a letter of intent signed in November with EgyptAir for 12 CSeries planes, the first completed order received by Bombardier for the single-aisle jets after a 1-1/2-year sales drought.

It's not clear when a second letter of intent signed in November from an undisclosed European customer for 31 CSeries jets will be finalized. The order was initially expected to be completed by the end of 2017.

(Reporting by Allison Lampert in Montreal; Editing by Cynthia Osterman)

2018-01-03 22:07:53

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