(Updated with comment from Pratt & Whitney)
Delivery delays of PW1500 geared turbofan engines from Pratt & Whitney have prompted Bombardier to lower its forecast for C Series shipments from 15 to seven for this year, Bombardier announced on Tuesday. It did not reveal the source of the delivery delays, but stressed that the engine has performed well once it enters service. âWe are working very closely with Pratt & Whitney to quickly address this supplier ramp-up issue and to ensure we have a strong supplier base to support our long-term growth objectives,â said Bombardier Commercial Aircraft president Fred Cromer. âWe are very confident in our production ramp-up plan, including our ability to meet our production goal of 90 to 120 aircraft per year by 2020.â
For its part, Pratt & Whitney would offer no explanation beyond a short written statement that appeared to point to supply chain difficulties. "In terms of production, weâve made significant headway in the supply chain, but there is some pressure on new engine deliveries for this year," said Pratt. "We are working closely with our customers on the delivery schedule, and we are keeping them apprised of the progress being made."
A Pratt & Whitney spokeperson insisted that the delays in no way related to early technical problems that dogged the PW1500G early in the program, nor did they bear any relationship to the extended restart intervals involving the PW1100G for the Airbus A320neo. "That issue is completely behind us," she said.
The first production C Series CS100 has now flown for launch operator Swiss International Airlines for six weeks. Bombardier confirmed that the two airplanes so far delivered to the Lufthansa subsidiary have flown nearly 400 revenue flights and accumulated almost 600 flight hours. Delivery schedules call for the larger CS300 variant to enter service with AirBaltic in the fourth quarter.
Bombardier said the delivery adjustment will result in lower revenues at Commercial Aircraft for the year without âmateriallyâ affecting EBIT. The company now expects to close the quarter at the lower end of its $16.5 billion to $17.5 billion revenue guidance range, while EBIT finishes at the upper end of the $200- to $400 million range. The Canadian airframer added that it expects to end the year with a strong liquidity position and achieve both its 2018 cash flow neutral goal and its 2020 turnaround plan objectives.
Separately, Bombardier on September 1 received the second and last $500 million installment of the government of Quebecâs investment in the C Series program. The total $1 billion investment gives Quebec a 49.5-percent share in the new entity called the C Series Aircraft Limited Partnership (CSALP) while Bombardier continues to own a controlling stake.