Press Releases

Lufthansa Group Signs Purchase Agreement with Bombardier for up to 60 CSeries Aircraft

March 11, 2009 — Toronto

Bombardier announces new model names for game-changing aircraft

Bombardier Aerospace announced today that Deutsche Lufthansa AG, the launch customer for the CSeries aircraft program, has signed a firm purchase agreement for 30 CSeries model CS100 (formerly C110) single-aisle aircraft. These aircraft will be operated by Lufthansa’s subsidiary Swiss International Air Lines Ltd. The agreement also includes options on an additional 30 CSeries aircraft.

Based on list price, the contract value for the 30 CS100 aircraft is approximately $1.53 billion US.

The Lufthansa Group became the launch customer for the CSeries aircraft family in July 2008 when it signed a Letter of Interest (LOI) for up to 60 aircraft, including 30 options.

“Our purchase agreement with Bombardier for CSeries aircraft is a renewal of Lufthansa’s commitment to commercial success balanced by environmental and business policies oriented toward sustainability and passenger comfort,” said Nico Buchholz, Senior Vice President, Corporate Fleet, Lufthansa. “We are proud to be the launch customer for the CSeries family of aircraft which meets our requirements for sustainable fleet development including significant reductions in fuel burn and noise, as well as offering flexibility for the future.”

“Having Lufthansa - known throughout the airline industry for its stringent engineering and technical standards - sign this purchase agreement for our CSeries aircraft, confirms their confidence in the airplane and the future of the program,” said Gary R. Scott, President, Bombardier Commercial Aircraft. “We, at Bombardier, are delighted to have Lufthansa working with us from the beginning as we develop a family of aircraft designed specifically to meet the needs of the 100- to 149-seat market segment.”

Bombardier Aerospace also today announced the launch of new model designations for its game-changing CSeries family of aircraft. The 110-seat configuration (previously known as the C110 aircraft) will be designated the CSeries model CS100 aircraft and the 130-seat configuration (formerly the C130 aircraft) will be designated the CSeries model CS300 aircraft.

The 110-seat and 130-seat CSeries family of aircraft brings unmatched passenger comfort, performance, and operating economics, benefiting from the latest technological advancements, including: fourth-generation aerodynamics; increased use of composites and advanced aluminium alloys in structures; the very latest in system technologies, such as fly-by-wire, electric brakes, and a next-generation engine – the Pratt & Whitney PurePowerTM PW1000G  engine. PurePowerTM  represents a significant breakthrough in turbofan technology, especially on the environmental front where it will set new benchmarks from dramatically reduced fuel burn, noise, and emissions.

At time of entry into service in 2013, the CSeries family of aircraft will be the greenest single-aisle aircraft in its class. These game-changing aircraft will emit 20* per cent less CO2 and 50* per cent less NOx, fly four* times quieter, and deliver dramatic energy savings – 20* per cent fuel burn advantage as well as 15* per cent improved cash operating costs versus current in-production aircraft of similar size. The CSeries aircraft will set a new benchmark in the industry, consuming as little as two litres of fuel per passenger per 100 kilometres in its more dense seating layouts*.

The CS100 and CS300 aircraft models will share a new common centerline engine and have the same crew type rating, operating and maintenance procedures. Each of the aircraft models will also have operational flexibility to permit utilization on both short-haul and transcontinental routes.

In addition to Bombardier’s fourth-generation transonic composite wing design, the company is also using its Reconfigurable Engineering Flight Simulator II (REFS II) to develop customized ‘fly-by-wire’ control laws specific to CSeries aircraft. This simulator is the first of many devices planned, as part of an extensive integrated test regime, to ensure the CSeries aircraft achieves consistently high levels of reliability when it enters service.

About Bombardier
A world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2008, were $17.5 billion US, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at www.bombardier.com.

Bombardier, CS100, CS300  and CSeries, are trademarks of Bombardier Inc. or its subsidiaries.

*The CSeries aircraft is in the design phase. All data and specifications are estimates, subject to change in family strategy, branding, capacity, performance during the course of the design, manufacture and certification process.  Performance has been estimated based on a 500-nm North American operating environment.

TM PurePower is a registered trademark of United Technologies Corp. – Pratt & Whitney.

Note to Editors
Images of Swiss CS100 aircraft are available in the press releases section at: www.bombardier.com. For CSeries aircraft images, video and product information please visit cseries.com.

For information
John Arnone
Bombardier Aerospace
+1 416 375-3030

www.bombardier.com

FORWARD-LOOKING STATEMENT
This press release includes forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “plan”, “foresee”, “believe” or “continue” or the negatives of these terms or variations of them or similar terminology. By their nature, forward-looking statements require Bombardier Inc. (the “Corporation”) to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause the Corporation’s actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on current information available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, please refer to the respective Management’s Discussion and Analysis (“MD&A”) sections of the Corporation’s aerospace segment and the Corporation’s transportation segment in the Corporation’s annual report for fiscal year 2008. 

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with the Corporation’s business environment (such as the financial condition of the airline industry), operational risks (such as risks associated with doing business with partners, risks involved in developing new products and services, product performance warranty, casualty claim losses, risks from regulatory and legal proceedings, environmental risks, risks relating to the Corporation’s dependence on certain customers and suppliers, human resource risks and risks resulting from fixed-term commitments), financing risks (such as risks resulting from reliance on government support, risks relating to financing support provided on behalf of certain customers, risks relating to liquidity and access to capital markets, risks relating to the terms of certain restrictive debt covenants) and market risks (including foreign currency fluctuations, changing interest rates and commodity pricing risk). For more details, see the Risks and Uncertainties section of the MD&A of the Corporation’s annual report for fiscal year 2008. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect the Corporation’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


CAUTION REGARDING NON-GAAP EARNINGS MEASURES
This press release is based on reported earnings in accordance with Canadian generally accepted accounting principles (GAAP). It is also based on EBITDA, EBIT, and EPS, before special item, EBIT before EOAPC charge and Free cash flow. These non-GAAP measures are mainly derived from the interim consolidated financial statements, but do not have a standardized meaning prescribed by GAAP; therefore, others using these terms may calculate them differently. Management believes that a significant number of the users of its MD&A analyze the Corporation’s results based on these performance measures and this press release is consistent with industry practice.

 

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