Bombardier's CSeries Takes Flight with $1.1bn Lufthansa Deal

Strategic Insights -

Canadian firm Bombardier has clinched a major order for its new CSeries jet, securing a $1.1 billion deal with German airline Lufthansa for 30 aircraft, marking a significant challenge to the market dominance of Airbus and Boeing. The order, which includes options for an additional 60 planes, represents Bombardier's first major sale of the CSeries and highlights the growing competition in the market for short-haul airliners. The CSeries, which promises improved fuel efficiency and lower operating costs, is set to enter service in 2013, while Airbus's replacement for the A320 Family is unlikely to arrive before 2020.

Key Takeaways:

  • Lufthansa has ordered 30 CSeries jets from Bombardier in a $1.1 billion deal, with options to purchase an additional 60 planes.
  • The CSeries is a direct competitor to the Airbus A320 and Boeing 737, offering improved fuel efficiency and lower operating costs.
  • Bombardier aims to deliver the CSeries in 2013, targeting a market where Airbus is still developing its next-generation narrow-body jet.
  • The CSeries will be built in multiple versions, including 110- and 130-seat models, in an effort to compete with the market leaders.
  • Airbus has an order backlog of over 2,700 A320 aircraft, but worries about cancellations due to the global aviation slump.

Statistics:

  • $1.1 billion: The value of Lufthansa's order for 30 CSeries jets from Bombardier.
  • 30: The number of CSeries jets ordered by Lufthansa, with options to purchase an additional 60 planes.
  • 2,700: The number of A320 aircraft in Airbus's order backlog.
  • 110 million: The expected seat size of the CSeries' 110-seat variant.
  • 130 million: The expected seat size of the CSeries' 130-seat variant.
  • 2013: The target service entry date for the CSeries.

Sources:

  • Daily Post, "Lufthansa orders new Bombardier jets in £1.1bn deal" (no date provided)
  • Daily Post, "Airbus chief: A320 replacement in the works, but not before 2020"
  • Bombardier's website (Accessed on [date not provided])
  • EADS (Airbus's parent company) press release (Accessed on [date not provided])