Transport Canada certifies Bombardier CSeries commercial jet for service

MIRABEL, Que. -- After delays and cost overruns, Bombardier's US$5.4-billion CSeries passenger jet has been given the green light to enter into commercial service.

See Full Article

The largest plane built by the Montreal-based manufacturer was formally certified on Friday by Transport Canada.

Transport Minister Marc Garneau announced the go-ahead during a news conference at the aircraft's assembly facility in Mirabel, north of Montreal.

"This is a big day," Garneau said. "Major projects like the Cseries of Bombardier don't happen very often."

The 110- to 125-seat CS100 has undergone more than 1,000 test flights since its first flight on Sept. 16, 2013.

A series of challenges prompted Bombardier to delay the plane's entry in service by Lufthansa-owned Swiss Airlines until the first half of 2016.

The larger CS300 with up to 160 seats is scheduled to be certified and be delivered to launch customer AirBaltic in September.

Bombardier has high hopes that the plane's use of lightweight materials and fuel-efficient Pratt & Whitney engines will make it a long-term winner, especially in growing markets like China.

But the plane has been stuck at just 243 firm orders for more than a year, while there are very few delivery slots available in the initial years as it ramps up production to more than 100 planes a year in 2020.

Certification comes more than a decade after Bombardier unveiled plans to build a plane that would compete directly with the smaller airliners from Boeing and Airbus.

Bombardier's efforts to upscale from its popular regional jets has been supported by governments in Canada, Quebec and Britain which committed hundreds of millions of dollars in financial support.

However, the high costs of introducing a new plane prompted Bombardier in October to announce a US$3.2 billion writedown on the CSeries. That was the same day the Quebec government committed another US$1 billion for a 49.5 per cent stake in the CSeries.

Ottawa is reviewing a request for matching dollars.

Bombardier has said the government funding is reassuring potential customers who may have been concerned about Bombardier's financial ability to bring the jetliner to market.



Advertisements

Latest Economic News

  • Boeing seeks delay in duty ruling on petition against Bombardier

    Economic CBC News
    Bombardier may have to wait an extra two months to find out if its CSeries commercial jets will be hit by punishing U.S. duties. Boeing has requested that the U.S. Commerce Department delay its preliminary determination on its petition until Sept. Source
  • Shopify sees big uptick in U.S. job applicants after Trump's election, CEO says

    Economic CTV News
    TORONTO -- Shopify's CEO says it's a great time for Canadian startups to attract talent as the U.S. government is creating an uninviting environment for a lot of people. Tobias Lutke says his company is receiving many more applications from U.S. Source
  • Shopify sees boost in applicants from U.S. after Trump's election, CEO says

    Economic CTV News
    TORONTO -- It's a great time for Canadian startups to attract top talent from south of the border as the U.S. government is creating an unwelcoming environment, the chief executive of Shopify says. "The Americans are doing a really great job of uninviting a lot of kinds of people who otherwise would go there," said Tobias Lutke, who founded the e-commerce platform firm in 2004. Source
  • Ontario proposes banning real estate agents from representing seller and buyer

    Economic CBC News
    Ontario is proposing banning the practice of double ending, in which a real estate agent represents both a buyer and a seller in a transaction. The Liberal government announced its 16-point housing plan earlier this year, with centrepiece planks of a 15 per cent foreign buyer tax and expanded rent controls. Source
  • SEC fraud charges filed against Penn West, three former finance execs

    Economic CBC News
    Two days after changing its name and vowing to put its scandal-tainted past behind it, the former Penn West Petroleum is being hit with charges by the U.S. Securities and Exchange Commission. The SEC charges allege the Calgary-based oil and gas firm and three of its former finance executives participated in a "multi-year accounting fraud" where hundreds of millions of dollars were mislabelled to improve the appearance of its operating metrics. Source
  • Penn West shares plunge after SEC files fraud charges

    Economic CBC News
    Two days after changing its name and vowing to put its scandal-tainted past behind it, the former Penn West Petroleum is being hit with charges by the U.S. Securities and Exchange Commission. The SEC charges allege the Calgary-based oil and gas firm and three of its former finance executives participated in a "multi-year accounting fraud" where hundreds of millions of dollars were mislabelled to improve the appearance of its operating metrics. Source
  • Penn West shares plunge after SEC files fraud charges involving three former execs

    Economic CTV News
    CALGARY -- Shares in Penn West Petroleum dropped sharply Wednesday morning after the U.S. Securities and Exchange Commission announced it had filed fraud-related charges against it and three former finance executives. The Calgary-based oil and gas firm's stock fell by as much as 10.34 per cent, or 18 cents, to a 52-week low of $1.56 after it was briefly halted on the Toronto Stock Exchange for the announcement of the SEC filing. Source
  • Toronto stock index up moderately on broad sector gains, loonie strengthens

    Economic CTV News
    TORONTO - Canada's main stock index is showing moderate gains from a broad range of sectors. The Toronto Stock Exchange's S&P/TSX composite index was up 58.20 points to 15,339.42, after 90 minutes of trading. Source
  • Loonie above 76 cents US as Poloz hints rate hike may be coming

    Economic CBC News
    The Canadian dollar gained three-quarters of a cent and hit its highest level in four months on Wednesday after Canada's central bank head hinted in an interview that rate hikes could be coming sooner rather than later. Source
  • Boeing seeks delay in duty ruling on petition against Bombardier CSeries

    Economic CTV News
    MONTREAL - Bombardier may have to wait an extra two months to find out if its CSeries commercial jets will be hit by punishing U.S. duties. Boeing has requested that the U.S. Commerce Department delay its preliminary determination on its petition until Sept. Source