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Winnipeg Free Press - PRINT EDITION

Headaches predicted for Bombardier Aerospace

By: Ross Marowits

Posted: 09/3/2010 1:00 AM | Comments: 0 (including replies)

MONTREAL -- The world's largest aircraft manufacturer predicts that Bombardier Aerospace will face many of the same headaches developing its new CSeries that have caused delays with its Boeing 787 Dreamliner.

While stopping short of suggesting that delivery of the new 100- to 125-seat version will be delayed beyond 2013 as promised by Bombardier, Boeing Co. (NYSE:BA) vice-president Randy Tinseth said its Montreal-based rival is only just entering a phase in the plane's development that could cause it grief.

"They will have some of the same challenges we had on the 787," the marketing executive said Thursday during a media update about the global aircraft market.

The Chicago-based maker of commercial and military aircraft is forecasting a recovery in the global airliner market by 2012.

"They are bringing in partners that they haven't used before and partners in China and around the world and that just adds risk to the whole program."

For example, the CSeries will be Bombardier's first plane with an engine under the wing.

"They're just starting the hard work right now," he added, noting that the detailed design phase will determine if the delivery schedule can be maintained.

Bombardier (TSX:BBD.B) said the Pratt & Whitney engines and the CSeries' composite design will produce 20 per cent fuel savings and reduce operating costs by 15 per cent.

"We think that the airplane will be good -- we just don't know if it will be as good as they advertise," Tinseth said.

Bombardier spokesman John Arnone said the five-year development schedule for the CSeries gives the company "ample time to study, develop, test and deliver the world's newest and most advanced single-aisle aircraft on time."

Seattle-based Boeing (NYSE:BA) is facing new competition from Bombardier and other global players that are planning to enter a market that has been dominated by Boeing and Europe's Airbus.

For now, the competition will focus on the smaller end of the single-aisle market -- between 90 and 149 seats. But Tinseth said the new competitors could increase the size of their offer.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition September 3, 2010 B12

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