Bombardier shares jolt again, add 29 per cent on CSeries update
Company's shareholders breathe sigh of relief as shares jump more than 50 per cent in two days
MONTREAL—The quietest jet in its class may finally be making some noise. Bombardier Inc. may not have received a firm order for a CSeries aircraft in about a year, yet with certification testing progressing and the company’s revamped timeline on track, investors seem to be gaining a little more confidence in the Montreal-based transport company. Shares closed at $1.88 Sept. 10, up staggeringly – more than 50 per cent – from their $1.18 Tuesday close.
Bombardier has announced its CS100 aircraft has now completed all noise performance testing. And the preliminary data is overwhelmingly positive. The company says the tests confirm the new plane is the quietest commercial jet in its class. With city operations in mind, no doubt, the company also showed the plane off in Toronto Sept. 10, as Porter Airlines, which operates out of Toronto’s island airport, among many others, looked on.
“It’s always a thrill to see the C Series aircraft in a new city and today marks a proud achievement as we experience the aircraft’s Toronto debut,” Fred Cromer, president of Bombardier Commercial Aircraft, said. “With a solid plan targeting certification by year-end 2015, and entry into service with SWISS in the first half of 2016, we are working with existing and potential customers as they explore opportunities and develop business cases around the C Series jetliners.”
Bombardier said the first production CS100 aircraft will soon commence function and reliability testing, something that signals the start of the final flight testing phase. For this testing, the aircraft will operate on a commercial airline-type schedule visiting key airports in North America.
“The excitement around the C Series grows every time we meet or surpass our performance targets,” Rob Dewar, vice-president of the CSeries Aircraft Program, said. “We announced previously that the C Series aircraft are exceeding their original targets for fuel burn, payload, range and airfield performance. Now we are delighted that the CS100 aircraft’s noise performance tests have confirmed it as the quietest in-production commercial jet in its class.
With CSeries certification testing now over 85 per cent, the company says it remains on track officially launch the aircraft with SWISS in the first half of 2016 – good news for investors and airlines who have endured significant delays while awaiting the aircraft’s entry into service.
The company continues to trumpet its new plane will offer operators between $7.5 and $12 million in savings per aircraft, delivering strong fuel advantages.