This post is pure speculation. Please move on if you are not interested...
Given that Qatar Airways and Al Baker have stated in the past that they are interested in the Bombardier C-Series for short haul and long, thin routes, and given that Bombardier is HURTING for C-Series orders in a major way, could we possibly see a C-Series deal at Farnborough? I guess anything is possible. But Bombardier really needs a big C-Series deal. All of the previous orders for C-Series have been relatively small - 10 and 20 aircraft orders. Al Baker is very shrewd and he can smell blood in the water I am sure - if he wants a great deal with a desperate manufacturer, perhaps now would be the time to get a great bargain. Al Baker has proven that "concept" airplanes do not scare him - he will order them anyway to get the best price.
Perhaps Al Baker could tie a big C-Series order (employing many Canadians) to a bigger access-to-Canada deal for more Qatar Airways flights to Toronto, Montreal, Calgary and Vancouver - who knows? I would certainly tie any C-Series deal
that benefits Canadians to more market access.
Here is a recent article highlighting Al Baker's interest in the C-Series - but it sounds like a bluff to me (we are too busy now - great for more negotiating leverage). I realise the introduction of the 787 and other new aircraft types and the unbelievable HR backup (hiring, training, etc.) are true, but he has studied this airplane for a long time and he has many advisors who could help him. Again, this is pure speculation but I can bet that Bombardier needs a big C-Series deal right now because of the dearth of high-profile orders from big-name airlines with clout.
So, if not at a high-profile event like Farnborough, when? Bombardier needs the order momentum. True that Korean ordered something like 10 airplanes - but only 10? That doesn't do much for buyer confidence. Big aircraft lessors have also encouraged Bombardier to get aggressive on pricing to get the orders flowing. I am sure Al Baker is aware of this aggressive pricing pressure - and he would use it to his advantage.
So, Farnborough would be the PERFECT event to do a huge deal with Qatar Airways - which is surprisingly a very vocal fan of the C-Series. Qatar Airways wants the airplane (but perhaps not now because they are too busy) and Bombardier needs a big-time order of 50+ airplanes to get more orders flowing... So, Farnborough could be the ideal stage - especially with Qatar's 787 demonstration.
It may not happen at all, but if not now, can Bombardier afford to wait much longer and watch any momentum continue to dissapate?
The first flight of the smaller C-Series is expected around the end of this year. See the C-Series website here:
Bombardier CSeries
See article about Qatar's on/off interest below:
Qatar Airways in no rush to add CSeries but will order business jets
By: Ross Marowits, The Canadian Press
Posted: 04/12/2012 1:55 PM |
Comments: 0 (including replies) | Last Modified: 04/12/2012 8:27 PM
MONTREAL - Qatar Airways is in no rush to add Bombardier's CSeries aircraft to its growing fleet but will order several business jets to expand its executive service, the airline's CEO said Thursday.
Akbar Al Baker said he will announce an order for Bombardier's new Global aircraft at next month's Ebace air show in Geneva, for delivery around 2016 or 2017.
The airline already operates a fleet of six Bombardier business jets. It hopes to eventually offer 10 to 15 aircraft, but Al Baker wouldn't say how many planes would be included in this order.
Qatar has shelved plans to order the CSeries while it is busy preparing to receive four new aircraft types — Boeing 787, Airbus A350 and A320Neo and another he didn't want to identify. The company is spending more than US$50 billion for 270 airplanes.
Nonetheless he remains interested in eventually ordering 20 to 30 of the larger version of the 110- to 149-seat commercial plane, plus adding as many options. The aircraft would be used for Qatar's regional service and flights of less than 2 1/2 hours from Doha.
"The CSeries is a very good airplane for a niche market," he told reporters after a lunch-hour speech.
"It is very fuel efficient and it is a very technologically advanced aircraft and I'm sure that Bombardier will be very successful in this venture."
Al Baker planned to tour Bombardier's production facilities and see the plane's updated cockpit and systems designs. The CSeries is slated to enter into service the end of 2013, with the larger model following a year later.
Bombardier (TSX:BBD.B) CEO Pierre Beaudoin said the company is still in discussion with Qatar over a CSeries order.
"It's a product that gives the performance that is needed in that region," he told reporters.