Delta has a new secret weapon against American and Southwest — take a look inside (DAL, BBD.B)

Bombardier C Series CS100 Delta

Next Spring, Delta Air Lines is expected to put the first of its new Bombardier C Series airliners into service. The new ultra-fuel-efficient, long-range jets are expected to be based in New York and Los Angeles. 

However, the importance of these base locations cannot be overstated. New York, Los Angeles, and Dallas are not only three of the most highly competitive markets in the country, they are also home to American Airlines and Southwest Airlines, which are two of Delta's most important rivals. 

With the C-Series, Delta has a long-range, ultra-fuel efficient, 100-seat jet capable of making money in markets where competition has depressed profits. In addition, the new Bombardier jet will allow Delta to operate mainline service in markets that traditionally were serviced by smaller regional jets.

In April 2016, Bombardier Aerospace and Delta Air Lines announced a mega order for 75 of the company's C Series airliners in a deal worth up to $5.6 billion. Shortly after the deal's announcement, Bombardier flew one of its C Series demonstrators down to Delta's Atlanta headquarters for journalists and the airline's staff to get a closer look.

Although Bombardier has been a global leader in business and regional jets, the C Series is the first product from the Canadian airplane to compete against Boeing and Airbus in the mainline market. The decision to enter the market with the C Series was a major financial gamble for Bombardier, with a program price tag of $5.5 billion. Since its inception more than a decade ago, the aircraft has been beset by a series of development delays and slow sales.

In 2015, the airplane maker was forced to write down $4.4 billion and take a $1 billion bailout from the Quebec government. Even as it struggled to close a sale, Bombardier was credited with building an aircraft that's one of the most capable on the market today — besting rivals Boeing and Airbus in terms of efficiency and ability.

With the Delta order, Bombardier has not only found a US launch customer for the C Series, but it has the blockbuster deal it needed to validate the attractiveness of aircraft to other prospective buyers.

Here's a closer look at the airliner:

SEE ALSO: This Boeing jet is a luxury cruise ship for the sky

FOLLOW US: on Facebook for more car and transportation content!

Bombardier offers two versions of the C Series: a 130-seat CS300 and a smaller 108-seat CS100.



Delta chose the smaller CS100, but expect the airline to switch some of its order to the larger CS300 down the road.



Delta is expected to receive its first CS100 in the spring of 2018.



See the rest of the story at Business Insider


Contributer : Tech Insider http://ift.tt/2uY4s6C
Delta has a new secret weapon against American and Southwest — take a look inside (DAL, BBD.B) Delta has a new secret weapon against American and Southwest — take a look inside (DAL, BBD.B) Reviewed by mimisabreena on Friday, August 18, 2017 Rating: 5

No comments:

Sponsor

Powered by Blogger.