Military

Boeing, Airbus Lose Big Delta Order to Bombardier

courtesy of Bombardier Inc.

Canada’s Bombardier has won a firm order from Delta Air Lines Co. (NYSE: DAL) for 75 of its new CS100 aircraft and an option on 50 more in a deal worth about $5.6 billion at list prices. Boeing Co. (NYSE: BA) and Airbus had also chased the order.

The Canadian firm telegraphed the win on Tuesday when it moved its earnings reporting date up from Friday to Thursday. Combined with Boeing’s earnings report on Wednesday, in which the Chicago-based firm did not announce the order, Bombardier’s win was virtually a foregone conclusion.

Bombardier lost two orders to Boeing earlier this year, when Boeing reportedly struck a deal with United Continental Holdings Inc. (NYSE: UAL) for 65 737-700s at a price that Bombardier could not match. But Boeing must have decided that it could not afford to undercut the Canadian firm on a second large order for the single-aisle jets.

The CSeries is Bombardier’s first effort to compete with the big boys in the market for planes with a capacity of 100 to 150 seats. The 737-700 seats 118 passengers.


The CS100 is scheduled to enter into service in July, more than two years behind schedule and $2 billion over budget. Lufthansa, Korean Airlines and Air Canada, among other airlines, have also ordered both CS100 and the larger CS300 planes from Bombardier, although some of those orders remain to be finalized.

The deal with Delta includes conversion rights to the CS300, the 149-seat member of the CSeries family. The larger plane has been a better seller for Bombardier, another reason why the order from Delta for the smaller planes was a big boost for the aircraft maker.

Bombardier also has been considering a stretched version of the CSeries, the CS500 that could carry up to 160 passengers. Thursday’s announcement made no mention of the CS500.

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