Procurement News Notice |
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| PNN | 8612 |
| Work Detail | Canada’s Bombardier Inc. on Tuesday slashed by more than half its forecast for deliveries of its new C Series aircraft this year, blaming the delayed deliveries on slower-than-expected delivery of Pratt & Whitney engines. For the full year, the company has adjusted its C Series delivery forecast from 15 to seven aircraft “as a result of engine delivery delays by its supplier Pratt & Whitney,” Fred Cromer, Bombardier Commercial Aircraft President Fred Cromer said in a news release. Pratt spokesman Ray Hernandez said Tuesday his company is working on the supply backlog issue. “In terms of production, we’ve made significant headway in the supply chain, but there is some pressure on new engine deliveries for this year,” Hernandez said in an email. “We are working closely with our customers on the delivery schedule, and we are keeping them apprised of the progress being made,” he added. Cromer said the problem isn’t with the performance of Pratt’s geared turbofan engine that powers the Bombardier jet. “The C Series engine is performing very well in service,” he said. “We are working very closely with Pratt & Whitney to quickly address this supplier ramp-up issue and to ensure we have a strong supplier base to support our long-term growth objectives.” He went on to say Bombardier also is “very confident in our production ramp-up plan,” including the company’s ability to meet its ultimate production goal of 90 to 120 planes per year by 2020. In the shorter term, Cromer said, the delayed deliveries will result in lower revenues for the year at Bombardier. The company now expects to end 2016 with total revenues “close to the lower end” of its previous forecast of $16.5 billion to $17.5 billion, he said. In one of its largest single orders this year, Bombardier in June announced it had finalized an Air Canada agreement for 45 CS300 aircraft and options for an additional 30 planes. Deliveries are to begin in late 2019 and extend to 2022, Bellemare said. The initial order was valued at about $3.8 billion, which would increase to $6.3 billion if Air Canada bought all the additional planes, Bombardier President and CEO Alain Bellemare said in the June news release. With each CS300 powered by two of Pratt’s PW1500G geared turbofan engines, the initial deal was said to be worth nearly $1 billion to Pratt, minus any incentives. Bombardier and Air Canada are based in Montreal, Quebec. Pratt has experienced a series of problems with the new engines, including a longer than usual engine-cooling issue that delayed the production of Airbus Industrie’s A320neo planes. That issue contributed to the cancellation of three planes that had been ordered by Qatar Airways. Pratt has said it has made software and other fixes that now have the engine performing normally. |
| Country | Canada , Northern America |
| Industry | Defence |
| Entry Date | 15 Oct 2016 |
| Source | http://www.journalinquirer.com/business/bombardier-halves-pratt-powered-plane-deliveries-for/article_3d62093a-7510-11e6-a697-9ffcb7554051.html |
