Bombardier Intends To Compete With Embraer, Boeing and Airbus By David M. North 07/25/2004 06:57:18 PM REGIONAL RIVALRY Bombardier Aerospace plans to enter the larger-size regional aircraft market with two new entries of 110 and 135 seats, placing it in contention against Embraer on its planned smaller aircraft and against established commercial aircraft manufacturers at the other end. The Montreal-based company took advantage of the Farnborough air show to say it will present plans for a $2-billion aircraft development program to its board of directors early next year. If the project is approved, first deliveries of the smaller version of its CSeries transports could occur in 2010. Bombardier studied a similar transport several years ago, but shelved it when financial constraints precluded start of a development program of that magnitude. However, the company has brought a number of new and derivative business jets to the market on time during the same period, including the Challenger 300 and Global 5000. Starting well behind Embraer in a portion of the market it is seeking, Bombardier hopes that improvements in total life-cycle costs, and cash operating costs some 15-20% better than existing aircraft, will give it an edge. However, with almost a 4-5-year head start, the Brazilian company is expected to begin deliveries of its 98-106-seat 190 in the third quarter of 2005, and of its 108-118-seat Embraer 195 in mid-2006. Embraer's entry jet in its new class of aircraft, the 70-78-seat 170, already is in service with LOT Polish Airlines, Alitalia Express and US Airways Express. Both Bombardier and Embraer had to go to new designs as they increased the size of their transports. Embraer could not stretch its 50-seat ERJ 145 to reach the needed passenger capacity, and Bombardier cannot simply extend the CRJ900 to achieve its capacity expectations. The new line of Bombardier transports will compete directly both with Boeing's 717-200, 737-600 and 737-700, and the Airbus A318 and A319. However, Bombardier officials and other manufacturers are looking to replace the almost 4,000 Fokker 70/100s, early McDonnell Douglas DC-9s and MD-80s, early Boeing 737 models and the British Aerospace 146 and Avro RJs in service. At this time, Bombardier envisions its new CSeries aircraft to have a maximum takeoff weight of 123,000-151,000 lb., a payload of 31,000-39,000 lb., and a range of 1,800 naut. mi. for the shorter-range 110-seat and 135-seat transports. The longer-range CSeries 110LR will fly 3,250 naut. mi. and the 135LR's range is anticipated at 2,800 naut. mi. The new series of aircraft would have a 3-X-2 seat arrangement. Cross section at the seat level will be 136 in. The same wing planform will be used on all four versions of the new series. Balanced field length of the new family of aircraft is planned to be between 5,500-6,700 ft. Bombardier plans to install sidestick controllers, similar to that of Airbus', tied to a fly-by-wire flight control. The cockpit instrumentation will be state-of-the-art large displays, but the supplier of the avionics systems is yet to be determined. The engine to power the CSeries will be selected by year-end, John Holding, executive vice president for integrated product definition and planning, said. Embraer plans to build 57 of its 170s this year, following a delay in the certification of the initial aircraft primarily due to avionics problems. By year's end, Embraer plans to produce seven aircraft monthly, with a steady increase in 2005, including initial deliveries of the 190 to JetBlue. Total production of commercial aircraft at Embraer will be 160 this year, including the 170, smaller ERJ series and the corporate Legacy. The company expects to deliver 170 aircraft in 2005. While the delay in 170 deliveries and high development costs for the new series of transports have cut profits, aircraft are being delivered at positive margins, according to one Embraer official. While some previous Farnborough and Paris air shows have been noted for the announcement of large orders for regional jets by airlines, emphasis on aircraft orders was subdued this year. Spain's Air Nostrum ordered 20 more 50-seat CRJ200s to add to its fleet of Bombardier regional jets. AvCraft, the company now building and selling the former Fairchild Dornier 328 series of regional aircraft, claimed that it would have a backlog of 51 328JETS and 328 turboprops if expected orders were finalized here. The expected announcement by Bombardier on its planned new series of regional jets provided the single biggest news item in that arena at the show. The first showing of the Embraer 190 at Farnborough and new developments in the Russian and Ukrainian efforts in regional jets were noteworthy at a show bereft of new aircraft programs, or large orders for the class of aircraft. Roger EWROPS