The Airbus and CSeries Aircraft Limited Partnership (CSALP)
On 1 July 2018, a fortnight before the Farnborough Air Show biennial international air show, Airbus took majority control of the CSeries Aircraft Limited Partnership (CSALP) incorporating the latter’s CS100 airliner into its family, renaming it the A220-100 while the larger CS300 would be the A220-300. The new designations mean that these airliners are now part of Airbus, however of smaller capacity than the A320, but positioning them alongside, if not above, the competing Embraer E195-E2.
According to strategists, the A220-100 is being marketed by Airbus as an ‘entry-level aircraft’ – a growth vehicle for regional airlines and a tool for carriers requiring special performance for challenging airports, such as London City. Airbus sees the A220-300 as a hub feeder and a lower risk option for start-up carriers. The A319neo, which is the same size as the A220-300 but having significantly higher seat-mile costs, will be positioned as a “high-performance aircraft.” Of the more than 6,100 firm orders for A320neo-family aircraft, only 56 are for the A319neo, which is presently still in flight-testing.
JetBlue Airways were first off the block by ordering 60 A220-300s, with deliveries to begin 2020. Plus options for 60 more aircraft which would begin delivery from 2025. According to the airline, “we are evolving our fleet for the future of JetBlue, and the A220-300’s impressive range and economics offer us flexibility and support our key financial and operating priorities”.
Embraer sign record deals
Not to be outdone, the next day on 17 July, Embraer announced deals for some 300 aircraft, worth a combined $ 15 billion, consisting of both its E175-E1 and E2 families of airliners. The Brazilian company revealed letters of intent from Azul (21 E195-E2s) and Republic Airways Holdings (100 E175s with 100 purchase rights), and a firm order from Wataniya Airways (10 E195-E2s with 10 purchase rights). Further, Switzerland’s Helvetic Airways will order 12 E190-E2s with an additional 12 on option, Helvetic operating seven E190-E1s and five Fokker 100s. Including these new contracts, Embraer have sold more than 520 E-175s to airlines in North America, by far the leader in the 70-75 seat category.
On 5 July, Boeing signed a non-binding Agreement to assume an 80% stake in Embraer’s commercial programmes. While management of new company will be based in Brazil, reporting to Boeing CEO Dennis Muilenburg, the company is expect the joint venture to be formalised by the end of 2019, following various shareholder and regulatory approvals.
According to Embraer’s CEO and President Paulo Cesar de Souza e Silva “the business combination with Boeing is expected to create a virtuous cycle for the Brazilian aerospace industry, increasing its sales potential [and] production, creating jobs and income [and] investments and exports, and, in doing so, adding more value to customers, shareholders and employees.”