Bombardier Commercial Aircraft - CU May 2012

update Commercial Aircraft

MAY 2012 | VOLUME 23 | ISSUE 2

Q400 NextGen for WestJet

Inside: Q400 biofuels success “Great progress� on CSeries Leasing companies and investors bullish on CRJ1000 NextGen Top Bombardier operators/suppliers honored Flybe named R&O facility for CRJ

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

CSeries: optimized single-aisle mainline solution

CRJ NextGen: optimized regional jet solution

Q400 NextGen: optimized short-haul solution

WestJet selects

Q400 NextGen for new regional airline

“We believe the Q400 NextGen aircraft’s combination of range, speed and seat density is the best choice to meet the needs of the market and how we plan to operate the regional airline.”

Gregg Saretsky President and Chief Executive WestJet

C

algary, Alberta-based WestJet has selected the Bombardier Q400 NextGen airliner for its new regional airline service scheduled to begin in the second half of 2013. The airline has signed a Letter of Intent (LOI) to acquire 20 78-seat Q400 NextGen aircraft and take options on an additional 25.

The airline said it will deploy its Q400 NextGen aircraft to new destinations, and increase schedules where the aircraft can provide greater frequency with more efficiency than the airline’s Boeing 737 aircraft.

“We are very impressed with the Q400 NextGen,” Gregg Saretsky, President and Chief Executive, WestJet, said in a statement. “We believe the Q400 NextGen aircraft’s combination of range, speed and seat density is the best choice to meet the needs of the market and how we plan to operate the regional airline.”

“As a productivity machine, the Q400 NextGen aircraft delivers 78 seats with ample cargo volume to meet the needs of WestJet and its guests,” said Mike Arcamone, President, Bombardier Commercial Aircraft. “This versatile airplane is efficient on short-haul missions or can use its speed to reach regional destinations further afield, making it competitive with jets on longer sectors. With an unmatched balance of speed, comfort, cost efficiencies and highly regarded environmental qualities, the Q400 NextGen aircraft is a perfect fit for WestJet. “We look forward to continuing to work with the WestJet team to finalize the purchase agreement,” said Mr. Arcamone.

Formed in 1996, WestJet currently operates an all-Boeing 737 fleet to 70 destinations in Canada, United States, Mexico and the Caribbean.

May 2012 // 2

Q400 NextGen airliner on

multi-country tour Bombardier’s Q400 NextGen airliner featuring a “Get More” livery is on a globecircling demonstration tour that began in March 2012. The special livery represents the aircraft’s excellent performance, economics and passenger comfort. The Q400 NextGen airliner is the fastest new-technology turboprop, combining jet speed and turboprop fuel efficiency that allow it to deliver the best flexibility and overall operating economics in its market segment. The “Get More” aircraft is configured with a comfortable 78 seats.

The first stop on the tour was Calgary, Alberta, home of WestJet. The tour continued to Santiago, Chile for the 2012 FIDAE air show – the largest in Latin America – where the aircraft conducted several flights.

After returning to Toronto, where the Q400 NextGen aircraft is assembled, the “Get More” aircraft headed to Africa where it was met with enthusiasm during stops in Senegal, Ghana, Botswana, Mozambique, Tanzania, Kenya and Rwanda. Subsequent stops will include Turkey, Georgia, Russia, CIS, Mongolia, China and Japan before the aircraft returns to Canada.

Biofuels take off

T

he use of biofuels in turboprop aircraft has taken its first steps with Porter Airlines of Toronto and Horizon Air of Seattle having flown Bombardier Q400 revenue flights using a mixture of biofuel and Jet A. The Horizon flights carried a blend of 20 per cent used cooking oil and 80 per cent Jet A; Porter used a blend of 50 per cent biofuel developed from oilseed and 50 per cent Jet A. In both cases the biofuel was limited to one engine, the other used only Jet A.

Horizon used biofuel on Q400 flights between Seattle and Portland, Oregon in the fall of 2011, while Porter used a Q400 aircraft on the first biofuel powered revenue flight in Canada. This flight between Toronto and Ottawa occurred in April 2012.

Horizon parent Alaska Air Group said in a statement that its use of 20 per cent biofuel on 75 Q400 and Boeing 737 flights reduced greenhouse gas emissions by 10 per cent, the equivalent of removing 26 cars from the roads for a year. The company said that if its entire fleet of jets and turboprops used the 20 per cent biofuel mixture for a year, the annual emissions savings would be the equivalent of removing 64,000 cars from the roads, or providing electricity to 28,000 homes.

The fuel used by Porter Airlines in its Q400 was certified to the new American Society for Testing and Materials (ASTM) D7566/D1655 standard and the biofuel was derived from Camelina sativa (49 per cent) and Brassica carinata (one per cent).

“The success of these biofuel tests using the Q400 aircraft speaks volumes about the ability of the aviation and other communities to work together towards producing a more sustainable aviation industry,” said Hélène V. Gagnon, Vice-president, Public Affairs, Communications and Corporate Social Responsibility, Bombardier Aerospace.

At Pratt & Whitney Canada, which supplies the PW150 engines for the Q400 aircraft, “We have implemented new technologies to significantly reduce fuel consumption, environmental emissions and engine noise,” said Daniel Breitman Vicepresident, Engine Development Programs. “We are developing cutting-edge green technologies for the future to help the aerospace industry reach its commitment to reduce its overall footprint.”

3 // May 2012

“Great progress” on CSeries The CSeries aircraft program continues to move forward with the start of systems tests and simulations, including those on the engine and electrical systems. The testing is taking place on “Aircraft 0” (Aircraft Zero), also known as CIASTA – Complete Integrated Aircraft Systems Test Area.

Test data to date indicate that the CSeries program is on track to reach key performance targets on the road to entry into service (EIS) late in 2013. The first half of 2012 will see approximately 90 per cent of the aircraft systems being tested.

“Over 200 components and systems for the CSeries aircraft are being tested worldwide and I am pleased to say that the data received so far are confirming our key performance targets,” said Rob Dewar, Vice-president and General Manager, CSeries.

Mr. Dewar said the development team for the CSeries is extremely engaged, committed, working hard and making outstanding progress towards achieving first flight approximately one year prior to the EIS. “Next door to the CIASTA building, final tooling is arriving and being installed at Hangar Y,” said Mike Arcamone, President, Bombardier Commercial Aircraft. “For the CSeries, our manufacturing team is employing flexible and lean assembly practices, something I am familiar with from my years in the automotive industry.

“Assembly simulation exercises to ensure world-class quality and efficiency are already underway in Hangar Y,” said Mr. Arcamone.

May 2012 // 4

Test data to date indicate that the CSeries program is on track to reach key performance targets on the road to entry into service (EIS) late in 2013.

Pratt & Whitney has successfully completed its second flight test campaign of the PW Pure Power® 1500G engine that will power the CSeries. The engine has logged more than 1,300 hours. The engine will be assembled in Pratt & Whitney Canada’s new facility at Mirabel.

Designed for the growing 100- to 149-seat market, the 100 per cent new CSeries aircraft family combines advanced materials, leading-edge technology and proven methods to meet commercial airline requirements in 2013 and beyond. The design of the CSeries aircraft family is aimed at offering a 15 per cent cash operating cost advantage and a 20 per cent fuel burn advantage. The cleansheet design is ensuring that the aircraft will achieve greatly reduced noise and emissions, as well as superior operational flexibility, exceptional airfield performance and a planned range of 2,950 nm (5,463 km). The aircraft is being designed to be up to 12,000 lbs (5,443 kg) lighter than other aircraft in the same seat category and will provide passengers with a best-in-class, widebody cabin environment in a single-aisle aircraft.

“In terms of sales, we’re right on track with 11 customers having placed orders, options, and other commitments for up to 317 CSeries aircraft,” said Chet Fuller, Senior Vice-president, Commercial, Bombardier Commercial Aircraft, early in May 2012.

“These include major network carriers, national carriers, premium airlines serving city centre airports, a low-cost airline, leasing companies and a full service provider to airline partners. This diversity of customers speaks volumes about the flexibility of the CSeries aircraft family and its ability to meet air A CSeries cockpit structure being assembled at Bombardier’s facility in Saint-Laurent, Quebec. transport requirements worldwide in the 100- to 149-seat market segment.

“Currently, we’re talking to more than 70 prospective operators worldwide and our recently announced agreement with the Commercial Aircraft Corporation of China (COMAC) in China creates opportunities for customers of the CSeries and C919 aircraft to realize cost benefits from the operation of both aircraft families,” added Mr. Fuller.

The two manufacturers have agreed to co-operate on four distinctive projects: cockpit human-machine interface, electrical system, development of aluminum-lithium standards and specifications, and areas of customer services in terms of technical publications and colocation of teams.

This is the team that completed the installation of the tooling and measurement systems for CSeries aircraft.

Kudos for top operators and suppliers Twenty-five Bombardier commercial aircraft operators and suppliers have been honored with the presentation of the 2012 Airline Reliability Awards and In-Service Supplier Top Achievement Recognition (STAR) Awards.

To win, an airline must have attained an average dispatch reliability rate of 99 per cent or better on revenue passenger flights in 2011. Asterisks indicate an airline that has won the award for the fifth consecutive year.

“Especially in the light of the current business environment, our winners’ accomplishments are truly impressive,” said Todd Young, Vice-president, Customer Services and Support, Bombardier Commercial Aircraft. “It is very rewarding for the Customer Services team to be part of this global community of airlines, partners and suppliers.”

Operator Awards

STAR Awards

CRJ700/900/1000 PSA Airlines*, Pluna, Eurowings

Top Achievement Overall Rockwell Collins

CRJ100/200 SkyWest Airlines, Cimber Sterling, South African Express, J-Air

Q-Series Program C&D Zodiac Pratt & Whitney Canada Hamilton Sundstrand

Q400 Porter Airlines*, Olympic Air, Ethiopian Airlines, ANAWings*, AirPhil Express Q100/200/300 ERA Aviation, LIAT, Widerøes Flyveselskap*, Abu Dhabi Aviation, UNI Airways*, Ryukyu Air Commuter, Air Nelson*

CRJ Series Program GE Aviation Most Improved Dowty Propellers

Another Diamond for Bombardier wholly owned aircraft service centres in U.S. Bombardier’s wholly-owned commercial aircraft service centre in Bridgeport, West Virginia, has been given its 12th consecutive Diamond Award Certificate of Excellence by the U.S. Federal Aviation Administration. The award is presented to U.S.-based Aviation Maintenance Technician employers that take a proactive role in training. It is based on the initial and recurrent training completed by eligible employees in 2011.

The commercial aircraft service centres in Tucson, Arizona and Macon, Georgia have been given the honor since they began operation in 2004 and 2010, respectively.

The service centres are also preparing to handle CSeries maintenance when the aircraft begins revenue service late in 2013.

The business aircraft service centres in Dallas, Fort-Lauderdale, Hartford, Tucson and Wichita also received this honor.

“At Bombardier, we place a high value on training. We take great pride in the achievement of our Aircraft Maintenance Technicians and our role in encouraging their development,” Stan Younger, Vice-president, Aircraft Service Centres

May 2012 // 6

Leasing companies and investors bullish on

CRJ1000 NextGen T

he “outstanding value retention” of the CRJ1000 NextGen regional jet is drawing heightened interest and momentum from aircraft leasing companies and other investors.

Bombardier announced in February 2012 that Jakartabased Garuda Indonesia had placed an order for six CRJ1000 NextGen airliners directly from Bombardier, with an option for 18 CRJ1000 NextGen airliners. At the same time, the airline said that it was in advanced discussions with leasing company Nordic Aviation Capital (NAC) to acquire up to 12 CRJ1000 NextGen aircraft. Pending a final agreement between the airline and NAC, and should Garuda convert its 18 options, its fleet of CRJ1000 NextGen airliners would increase to 36 units.

“The relative ease in sourcing financing for CRJ1000 NextGen aircraft speaks to the aircraft’s performance and economics,” said Mike Arcamone, President, Bombardier Commercial Aircraft. “We are pleased to see that it is performing extremely well with its current operators and is delivering exceptional reliability.

“Despite the challenges currently facing many European economies, recent transactions undertaken to provide CRJ1000 NextGen aircraft to Air Nostrum of Spain, illustrate that the aircraft present attractive financing and leasing opportunities for airlines and investors. We are in discussions with airlines on almost every continent that are in expanding business plans and routes based on CRJ1000 NextGen airliners,” Mr. Arcamone said.

“The significant market potential and outstanding value retention of the CRJ1000 NextGen aircraft, as well as the broad

base of CRJ aircraft operators around the world, are all positive factors contributing to the interest from leasing companies and investors,” said Mairead Avery, Vice-president, Strategy, Business Development and Structured Finance, Bombardier Aerospace.

Designed specifically to meet the needs of airlines in highfrequency regional markets, the CRJ1000 NextGen aircraft is now proving that it is a sound investment for its operators. It is achieving the lowest cash operating cost per mile and per seat for operators in its market segment, while delivering extra range, exceptional reliability and a greener footprint.

The CRJ1000 NextGen aircraft has been achieving a mission fuel consumption rate that is four per cent better than estimated at launch. The improved fuel burn directly results in a four per cent reduction in carbon dioxide emissions, equivalent to an average reduction of nearly 700 tons of greenhouse gases per aircraft, each year. The Bombardier airliner is also achieving six per cent greater range than previously advertised, providing additional operational flexibility. The competitive aircraft is more than 9,700 kg (21,385 lbs) or 22 per cent heavier than the CRJ1000 NextGen aircraft for comparable passenger flights or same distance missions. The aircraft’s lower operating weight empty (OWE), fuel-efficient General Electric engines and highefficiency wing design are key factors contributing to the airliner’s lower fuel burn.

CRJ NextGen aircraft provide an outstanding passenger environment with a new interior that features larger overhead luggage bins, larger windows, improved cabin lighting and redesigned ceiling panels and sidewalls.

Luxair extends Smart Parts agreement Bombardier and Luxair, the national airline of the Grand Duchy of Luxembourg, have signed a five-year agreement to extend the Smart Parts Program coverage for the European airline’s Q400 NextGen turboprops.

The program is customized to Luxair’s specific operational and dispatch reliability needs and will continue to provide Luxair with competitive and predictable repair costs and superior availability of key components for its six Q400 NextGen aircraft through 2017.

“Extending our Smart Parts relationship with Luxair is a testament to the program’s value, viability and long-term flexibility,” said Gary Martin, Vicepresident, Sales, Marketing & Services Programs, Bombardier Customer Services. “As the original equipment manufacturer, Bombardier has both the technical and operational expertise to help airlines minimize the life cycle cost of their aircraft and ensure superior dispatch reliability through quick access to key components.”

The Smart Parts Program has been providing cost protection and budget predictability for Bombardier’s business aircraft customers for more than 25 years and there are currently more than 1,000 Bombardier business aircraft enrolled covering more than 35,000 components. Q400 aircraft were added to the Program in 2008, with Luxair as the launch customer.

7 // May 2012

Second CRJ authorized service facility for Europe Bombardier Aerospace has appointed Flybe Aviation Services of Exeter, England as an Authorized Service Facility (ASF) for the CRJ family of regional jets in Europe. The appointment adds to Flybe’s current Dash 8/Q-Series ASF designation, making Flybe the only company in the world to hold ASF designation for the two aircraft families.

The Aircraft Maintenance Division of Flybe, Europe’s largest regional airline, joins Adria Airways of Ljubljana, Slovenia as an ASF for the CRJ family.

“This is a significant development in our relationship with Bombardier,” said Marshall Barrand, Director, Commercial and Sales, Flybe Aviation Services. “We now look forward to extending our already well-established program of support as Bombardier continues to widen its market position across the regional aviation sector.”

Q Series Dash 8 Facts and Figures

CRJ Series Facts and Figures

Status (March 31, 2012) Delivered Series 100 299 Series 200 105 Series 300 267 Series 400 392 Program total 1,063

Status (March 31, 2012) Delivered Total CRJ100 226 226 CRJ200 709 709 CRJ440 86 86 CRJ700 315 324 CRJ705 16 16 CRJ900 257 268 CRJ1000 23 55 Challenger 800 33 33 Program total 1,665 1,717

Total 299 105 267 428 1,099

Dash 8-100/Q200/Q300 Fleet statistics, January 2012 Average flight time (mins.)

51 Average annual utilization (hours/cycles) 1,767/2,084 Highest annual utilization (hours/cycles) 2,953/4,833 Fleet total hours 20,942,177 Fleet total cycles 25,349,022 Schedule completion rate 99.5% 12-mo. Avg. Q400 Fleet statistics, January 2012 Average flight time (mins.)

57 Average annual utilization (hours/cycles) 2,137/2,243 Highest annual utilization (hours/cycles) 3,160/3,353 Fleet total hours 3,459,550 Fleet total cycles 3,773,586 Schedule completion rate 99.6% 12-mo. Avg.

CRJ100/200 Fleet statistics, January 2012** Average flight time (hrs.)

1.06 Average annual utilization (hours/cycles) 2,218/2,096 Highest annual utilization (hours/cycles) 3,516/3,463 Fleet total hours 24,461,004 Fleet total cycles 21,454,737 Schedule completion rate 99.6% 12-mo. Avg.

CSeries Facts and Figures

CRJ700/705/900 Fleet statistics, January 2012* Average flight time (hrs.)

1.41 Average annual utilization (hours/cycles) 2,667/1,888 Highest annual utilization (hours/cycles) 3,688/2,714 Fleet total hours 8,563,018 Fleet total cycles 6,258,246 Schedule completion rate 99.7% 12-mo. Avg.

Status (March 31, 2012) Delivered Total* CS100 0 66 CS300 0 72 Program total 0 138 * The CSeries Airline program has also booked 179 Options, Letters of Intent and Purchase Rights for CS100 and CS300 Aircraft.

CRJ1000 Fleet statistics, January 2012 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.

1.11 2,333/2,099 36,130 32,662 99.7% 12-mo. Avg. Utilization based on schedule data.

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

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

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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. 2012 Printed in Canada. *Bombardier, Q-Series, Q400, CRJ, CRJ700, CRJ900, CRJ1000, NextGen, CSeries, CS100 and CS300 are trademarks of Bombardier Inc. or its subsidiaries.

“Flybe has been a valued partner in ensuring the success of Bombardier operators in the region,” said Todd Young, Vice-president, Customer Services and Support, Bombardier Commercial Aircraft. “The expansion of ASF capabilities is a significant progression of our strong relationship and a testament to Flybe’s high level of technical expertise and experience.”