Bombardier Commercial Aircraft Update - May 2013

update Commercial Aircraft

RAA 2013 Edition

May 2013 | Volume 24 | Issue 1

CSeries mainliner taking flight

Inside:

• Customer Services on track for CSeries aircraft support • Steady growth for North American regionals • Bombardier offers triple-class CRJ NextGen aircraft

Bombardier Commercial Aircraft provides optimized aircraft solutions for short-haul, medium-haul and longer-range markets.

Q400 NextGen: optimized short-haul solution

CRJ NextGen: optimized regional jet solution

CSeries: optimized single-aisle mainline solution

CSeries Update More CSeries aircraft milestones met

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s tests on the Complete Airframe Static Test (CAST) facility move closer to finalization, the CSeries aircraft program is on track to meet the requirements for the safety-of-flight certificate.

The next milestone will be the transfer of the first Flight Test Vehicle (FTV1) to the flight test program. Pilot assessment has begun in the Engineering Simulator for high-speed taxiing and flight profile evaluations as the program moves forward towards the first flight by the end of June 2013.

Five FTVs are now in production: the engines are installed on FTV2, the wings are mated on FTV3, the FTV4 fuselage is nearing completion, and assembly has begun on FTV5.

The first Flight Test Vehicle (FTV1) made its first public appearance at Mirabel in a lavish presentation before an audience of analysts, media representatives and Bombardier employees on March 7, 2013.

Bombardier confirmed at the unveiling that it is offering an optional version of the CS300 aircraft that will seat up to 160 passengers; the baseline seating is 135 passengers. To accommodate the extra capacity, engineers increased the overall length of the aircraft to 127 ft. 0 inches (38.7 m) from 124 ft. 10 inches (38.0 m). airBaltic of Latvia has selected a 148-passenger configuration.

Below: CSeries wing undergoing load tests in the Complete Airframe Static Test facility. The wing was successfully tested to 115 per cent of its operating limit and reached an upward deflection of five feet (1.5 m). From the left, the Flight Test Vehicles (FTV): FTV1, FTV2, FTV3, FTV4 and FTV5.

May 2013 // 2

Join the CSeries Fan Club!

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o keep abreast of all the latest news and photos about the exciting new jetliner, join the CSeries Fan Club at www.cseries.com.

Proud Bombardier employees with their first CSeries aircraft.

3 // May 2013

Porter Airlines

CSeries jetliners for expansion

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oronto’s Billy Bishop Toronto City Airport was the scene April 10, 2013 for the announcement that Porter Airlines, which is based at the airport, had signed a conditional purchase agreement for 12 CS100 airliners, plus options on an additional 18 CS100 aircraft.

The agreement also includes purchase rights on six Q400 NextGen aircraft. Porter currently operates 26 Q400/Q400 NextGen airliners.

Porter is the unidentified Americas-based airline that signed a Letter of Intent (LOI) for CSeries aircraft as announced by Bombardier in December 2012.

Porter, Canadian launch customer for the CSeries aircraft, intends to use its 107-seat CSeries jetliners to extend its reach to cities such as Vancouver, Los Angeles, Florida and other points from its Billy Bishop airport base.

Standing in front of the CSeries flight deck and cabin demonstrator, Porter Airlines President and Chief Executive Officer Robert Deluce said his airline had analyzed existing and re-engined aircraft but selected the CSeries platform for its flexibility and suitability for urban operations. These qualities included outstanding fuel efficiency, short airfield performance and reduced sound and emissions.

“We look forward to expanding our network with an all-Bombardier fleet of CS100 jetliners and Q400 turboprops, promoting greener, quieter flying,” Mr. Deluce added.

“Porter Airlines’ selection of the gamechanging CS100 jetliner for its operations is a compliment to the CSeries aircraft program and the flexibility of this aircraft and the missions it can perform,” said

Mike Arcamone, President, Bombardier Commercial Aircraft. “Porter is widely recognized for its unique operations, as well as the refined service it provides and we are thrilled that Porter continues to look to Bombardier aircraft for its growth requirements.

“The worldwide momentum of interest for the CSeries aircraft program continues to grow and we are pleased that customers in both our traditional and growth markets are exploring opportunities and centering business cases around the use of Bombardier’s CSeries jetliners and pairing them with their Q400 aircraft operation,” added Mr. Arcamone. “We look forward to seeing the technologically advanced CS100 aircraft take to the skies in Canada and its neighbouring regions alongside Porter’s existing fleet of 26 Q400 aircraft.”

“We’re delighted about this agreement between Porter Airlines and Bombardier as it represents the first Canadian operator to select the PurePower® family of engines and also extends the strong relationship amongst Porter, Bombardier and Pratt & Whitney,” said Todd Kallman, President, Pratt & Whitney Commercial Engines. “In addition to double-digit reductions in fuel consumption and engine operating cost, our PurePower® engine generates a noise footprint that is up to four times smaller than today’s jet engine-powered aircraft, which benefits both travelers and airport communities.”

May 2013 // 4

Sales boost for the Q400 NextGen airliner

get more Bombardier’s Q400 NextGen turboprop airliner continued its push into new markets in the Spring of 2013 with Nordic Aviation Capital (NAC) of Denmark ordering four of the aircraft and RwandAir of Rwanda placing an order for another.

The NAC aircraft will be leased to airBaltic of Riga, Latvia and will join eight additional Q400 NextGen airliners ordered direct from Bombardier as the airline transitions to an all-Bombardier fleet of Q400 NextGen regional aircraft and CS300 mainline jetliners.

The order by NAC was the latest in a series of acquisition of Bombardier commercial aircraft. Other such transactions include the sale and leaseback of 10 Q400 aircraft to Marfin Investment Group for operation by Olympic Air of Greece; the sale and leaseback of eight Q400 NextGen airliners delivered to Eurolot of Poland; and the purchase of 12 CRJ1000 NextGen regional jets to be operated by Garuda Indonesia.

“The continued support from NAC is further evidence that leasing companies recognize the superb in-flight performance and reliability of our Q400 NextGen turboprop and CRJ1000 NextGen regional jet,” said Mike Arcamone, President, Bombardier Commercial Aircraft. “We look forward to increased activity involving the aircraft leasing community as we strive to help our customers to meet their business goals in a challenging economic environment.”

RwandAir’s Q400 NextGen aircraft will replace a Dash 8-200 turboprop and will have a two-class passenger configuration. Two other African carriers, Ethiopian Airlines and ASKY Airlines of Togo also operate dual-class Q400 NextGen aircraft. RwandAir will become the 12th operator of Q400/Q400 NextGen turboprops in Africa, where there are more than 40 of the models already in service, or ordered by, 11 operators in nine countries.

“We are complementing our new dual-class CRJ900 regional jets by offering similar cabin amenities on the Q400 NextGen aircraft, providing a seamless passenger service between the two aircraft models and aligning our fleet strategy towards a unified passenger experience,” said John Mirenge, RwandAir’s Chief Executive Officer.

5 // May 2013

Pinnacle Airlines’ new

CRJ900 NextGen jets Delta Air Lines’ order for up to 70 CRJ900 NextGen jetliners, including a firm order for 40 and options for 30, announced on December 6, 2012 reaffirmed the airline’s confidence in the jetliner.

“We have selected the CRJ aircraft for our restructuring plan based on the strength and reliability of their performance with our Delta Connection carriers over the years,” said Ed Bastian, President, Delta Air Lines when the order was announced.

The 40 firm-ordered aircraft will be operated by Delta Connection carrier Pinnacle Airlines.

Minneapolis-based Pinnacle became wholly owned by Delta effective May 1, 2013, and its aircraft will be configured in Delta’s new two-class plus Economy Comfort™ design. The design consists of 12 First Class seats at 37-inch (93.9 cm) pitch, 12 Economy Comfort™ seats at 34 inches (86.4 cm) and 52 Economy seats at 31 inches (78.7 cm). The 12 Economy Comfort™ seats are the first few rows of Economy and not in a separate cabin.

Longer cabin offered for CRJ aircraft Bombardier Commercial Aircraft is offering an optional CRJ NextGen regional jet version with more living space. Additional lavatory and bulkhead locations can allow for a cabin extension of up to 17 inches (43.2 cm). This could result in a triple-class cabin with more premium economy seats. The extension allows more roller bags in the wardrobes and overhead bins, as well as a larger lavatory.

The modification is available for the CRJ700 NextGen, CRJ900 NextGen and CRJ1000 NextGen airliners.

Extra length enabled by additional lavatory and bulkhead locations

May 2013 // 6

Customer Services Team on Track to Support CSeries Aircraft Operators Bombardier’s CSeries Customer Services has been working with the various CSeries aircraft teams to make sure the necessary support services for the new aircraft are ready well in advance of entry into service (EIS) in 2014.

“There’s a lot to be done, and we’re working hard to stay ahead of the schedule,” explained Bill Molloy, Director, CSeries Customer Services. “That’s why our main focus at the moment is on the initiatives with the longest lead times. I’m pleased to report that we’re on track with our critical milestones and we continue to monitor our progress on a daily basis.”

Critical list To meet customer needs, simulators need to be ready and in place as pilot training commences four months prior to EIS. To support operators’ budgetary requirements, the list of spare parts must be available at least 12 months ahead of EIS and the Illustrated Parts Data Publication (IPDP) has to be ready in the next few months of 2013.

The maintenance program must be available six months in advance of EIS, to allow for regulatory authority approval.

These are only some of the most significant steps – those with the longest lead times, said Mr. Molloy.

Parallel efforts include laying the groundwork for the other pillars of customer support, such as start-up support, supplier management and technical support.

As with any new aircraft program, the order of magnitude is considerable.

“Readiness is an intricate balance between meeting immovable deadlines and dynamic factors such as ongoing updates coming from aircraft and supplier test results and configuration changes,” observed Mr. Molloy.

Pilot Training Based on current orders, some 80,000 hours of initial pilot training will be scheduled on the two devices (one full flight simulator and one fixed training device) that are being set up at Bombardier’s Montréal Training Centre and with the authorized training providers (ATPs). Bombardier is also supporting the building of additional simulators through its Lufthansa Flight Training ATP in Germany.

“…our main focus at the moment is on the initiatives with the longest lead times. I’m pleased to report that we’re on track with our critical milestones.”

Bill Molloy, Director, CSeries Customer Services

Parts Services The initial provisioning list is slated for delivery to customers at the end of May 2013. As of May 6, more than 3,000 parts had been identified and more than 1,500 had been added to the system. All parts are on track to be added to the system by the end of this year, and orders for long-lead-time parts were placed in April to ensure that they are available well in advance of EIS. Technical Publications Significant investment has been made in manpower and productivity tools to ensure the delivery of the more than 16,000 data modules required for the aircraft’s flight and maintenance manuals by EIS. First up is the IPDP, the first draft of which is on track for delivery in June. All of the aircraft’s technical publications will comply with the S1000D international standard and allow customers to benefit from real-time publications and data reuse between information sets, among other things.

Maintenance Engineering A dedicated team is overseeing the task of defining the maintenance requirements for each aircraft system, in conjunction with customers, suppliers and regulatory authorities. The process is well under way, with more than 75 per cent of the maintenance items approved and seven of the 10 industry steering committees completed. Initial aircraft maintenance requirements are on track for submission to Transport Canada by the end of 2013.

“Right now, we’re doing a lot of the spadework needed to build a solid foundation,” Molloy said.

“We will soon embark upon a series of EIS readiness meetings with our customers, and we look forward to exceeding their expectations.”

2

Regional airlines A

The June - July 1993 issue of the Bombardier Regional Update announcing the North American launch of the 50-seat Canadair Regional Jet with the COMAIR/Delta Airlines partnership.

s the U.S. Regional Airline Association meets in Montreal for its 2013 annual meeting in May 2013 its members can look back 20 years to the beginning of the jet age for regional aviation in North America. It was in June 1993 when the COMAIR/Delta Air Lines partnership introduced the 50-seat Canadair Regional Jet to North American airline passengers and the main headline in Bombardier’s Regional Update proclaimed, “COMAIR sets North American pace with Canadair Regional Jet.” And thus began the era of the regional jet, a concept that many in the industry thought would fail because they felt regional airlines of the day could afford neither the acquisition nor operating costs of such an aircraft.

The first turboprops had been in service for only nine years and they were indeed cheaper to acquire and operate.

But more importantly, the regional jet was the airplane that began the spectacular growth of the regional airline industry. But, as history shows, both types flourished and prospered over the next 20 years as manufacturers continually introduced improvements in economy, efficiency, passenger comfort and size. The early 37-passenger de Havilland Dash 8-100 grew into the 50-seat Dash 8-300 and the 68- to 78-passenger Bombardier Q400. The 50-seat Canadair Regional Jet grew into the 70-seat Bombardier CRJ700, the 88-seat CRJ900 and 100-seat CRJ1000. de Havilland and later Bombardier have played a major role in the development of regional airlines, which have become an absolutely essential partner in commercial aviation in Canada and the U.S. In Canada, more than 260 Bombardier jets and turboprops are flown, or have been ordered by, 29 operators. In the U.S., more than 1,200 Bombardier aircraft are flown, or have been ordered by, 35 operators.

May 2013 // 7

20

l s

years into the jet age

Bombardier aircraft in North America make more than 220,000 monthly flights, or 27 per cent of total departures, and take-off every 12 seconds.

Bombardier’s Q400 and Q400 NextGen turboprop airliners have also found favor. Fifty orders from seven new customers were recorded in 2012 and the firm order book totaled 468 aircraft at the end of April 2013, making that aircraft the best-selling Dash 8 variant.

And in both the U.S. and Canada, the Q400 and Q400 NextGen aircraft are the turboprops of choice with 79 in the U.S. and 71 in Canada in operation or on firm order.

To keep pace with the growing fleet in North America, Bombardier’s Tucson, Arizona Service Centre recently opened three new maintenance lines for Q400 and Q400 NextGen aircraft to complement existing facilities at Bridgeport, West Virginia and Macon, Georgia.

With 10 per cent of the population of the U.S., it’s no surprise that Canada’s regional airlines carry 10 per cent of the passengers. In 2011, for example, Canada’s regionals flew 16.5 million passengers, versus 160.7 million passengers

by U.S. regionals.

Most of the regional airline passengers in Canada are flown by Air Canada Express carriers and most of those are flown on Dash 8 aircraft. Air Canada has developed the world’s largest fleet of Dash 8/Q-Series aircraft with more than 80 in operation and flown under the Air Canada Express banner by Jazz Aviation and Sky Regional.

Canadian regionals have showed steady growth over the last decade.

Bombardier studied Official Airline Guide statistics from May 2002 to May 2012 involving aircraft with between 20 and 99 seats and found that domestic departures by regional airlines increased by 50 percent and trans-border departures grew by 33 per cent. Monthly domestic seats grew 61 per cent and trans-border seats increased by 72 per cent.

2000

8 // May 2013

2013

Bombardier aircraft in North America

220,186 monthly flights

27%

of all departures

takes off every

12

seconds

Montreal welcomes RAA

cseries.com

crjnextgen.com

q400nextgen.com

Q-Series/Dash 8 Facts and Figures CRJ Series Facts and Figures Status (December 31, 2012) Delivered Series 100 299 Series 200 105 Series 300 267 Series 400 425 Program total 1,096

Total 299 105 267 463 1,134

Dash 8-100/Q200/Q300 Fleet statistics, January 2013 Average flight time (mins.)

50 Average annual utilization (hours/cycles) 1,728/2,062 Highest annual utilization (hours/cycles) 2,863/4,970 Fleet total hours 21,746,281 Fleet total cycles 26,300,222 Schedule completion rate 99.5% 12-mo. Avg. Q400 Fleet statistics, February 2013 Average flight time (mins.)

58 Average annual utilization (hours/cycles) 2,208/2,275 Highest annual utilization (hours/cycles) 3,183/3,324 Fleet total hours 4,213,072 Fleet total cycles 4,551,345 Schedule completion rate 99.6% 12-mo. Avg.

CSeries Facts and Figures Status (December 31, 2012) Delivered Total CS100 0 66 CS300 0 82 Program total 0 148 The CSeries aircraft program has booked firm orders for 148 aircraft and committments (including options, purchase rights, conditional orders and letters of intent) for another 214.

Status (December 31, 2012) Delivered Total CRJ100 226 226 CRJ200 709 709 CRJ440 86 86 CRJ700 316 324 CRJ705 16 16 CRJ900 261 274 CRJ1000 28 67 Challenger 800 33 33 Program total 1,675 1,782 CRJ100/200 Fleet statistics, January 2013* Average flight time (hrs.)

Average annual utilization (hours/cycles) Highest annual utilization (hours/cycles) Fleet total hours Fleet total cycles Schedule completion rate

1.06 2,170/2,050 3,571/3,324 26,106,379 22,997,897 99.7% 12-mo. Avg.

CRJ700/705/900 Fleet statistics, February 2013* Average flight time (hrs.)

1.39 Average annual utilization (hours/cycles) 2,616/1,884 Highest annual utilization (hours/cycles) 3,559/3,097 Fleet total hours 10,057,472 Fleet total cycles 7,359,497 Schedule completion rate 99.7% 12-mo. Avg. CRJ1000 Fleet statistics, February 2013 Average flight time (hrs.)

Average annual utilization (hours/cycles) Fleet total hours Fleet total cycles Schedule completion rate *Does not include operators of corporate aircraft.

1.07 2,322/2,176 88,767 83,715 99.9% 12-mo. Avg. Utilization based on schedule data.

Bombardier Commercial Aircraft is pubished by: Bombardier Commercial Aircraft 123 Garratt Boulevard, Toronto, Ontario Canada M3K 1Y5 Tel: +1-416-375-4027 // Fax: +1-416-375-4540

President: Michele (Mike) Arcamone Senior Vice-president, Commercial: Chet Fuller Vice-president, Marketing: Philippe Poutissou Vice-president, Customer Services and Support: Todd Young

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www.aero.bombardier.com Information, technical data and performance figures in this publication are subject to change without notice. This publication does not intend to convey any guarantees or warranties. Any guarantees or warranties on any subject are extended to customers only as may be provided in their purchase agreements. Articles in Commercial Aircraft Update may be reproduced without permission, providing the acknowledgement is given to Bombardier Commercial Aircraft Update.

Copyright © Bombardier Inc. 2013 *Bombardier, Bombardier 415, Challenger, CL-215, CRJ, CRJ100, CRJ200, CRJ700, CRJ705, CRJ900, CRJ1000, CS100, CS300, CSeries, Dash 8, Global, Learjeat, NextGen, Q200, Q300, Q400 and Q-Series are trademarks of Bombardier Inc. or its subsidiaries.

Bombardier Commercial Aircraft and Customer Services & Support teams mounted a strong presence at the Regional Airline Association’s 2013 annual convention in Montreal May 6-9.

Mike Arcamone, President, Bombardier Commercial Aircraft briefed the media on ongoing developments at the company’s three product lines on May 7 and highlighted Bombardier’s strong position in the North American regional aviation marketplace. Mr. Arcamone and other Bombardier leaders will also preside at the company’s annual dinner for its customers.

The Bombardier booth promoted the Q400 NextGen, CRJ NextGen and CSeries aircraft as well as its Customer Services and Support activities.