Bombardier’s C Series programme has been dealt a blow after its largest customer, Republic Airways, filed for Chapter 11 bankruptcy protection in the US.
The airways has additionally revealed plans to streamline its business by solely operating Embraer regional jets.
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Republic Airways currently has 40 firm orders for Bombardier’s new jet, reported Bloomberg.
The Republic Airways order accounts for 16% of Montreal-based firm’s C Series firm backlog, which currently stands at 243 aircraft.
Meanwhile, Bombardier spokeswoman Marianella de la Barrera was quoted by Bloomberg as saying that the bankruptcy filing is not expected to have any immediate impact on the airline’s C Series order.
Last October, Canada’s Québec Government signed a MoU with Bombardier to invest $1bn in the company’s C Series aircraft programme, days after talks ended with Airbus.
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By GlobalDataUnder the deal, the provincial government will receive a 49.5% stake in a newly created limited partnership that will take control of the assets, liabilities and obligations of the C Series programme.
Bombardier will own 50.5% of the newly created limited partnership, which will operate as a subsidiary of the company.
The longer range, single-aisle C Series aircraft is targeted at 100 to 149-seat market, offering a ‘significant’ fuel burn advantage.
The C series programme also had an effect on Bombardier’s financial position, with the company making a $4.9bn loss due to impairment charges on C Series and Learjet 85 programme in the third quarter.
