Cost to bring CSeries to market grows to $3.2b

Washington DC
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Development costs and capital investment for the Bombardier CSeries will total $3.2 billion, the Canadian airframer revealed today.

During a conference call to discuss Bombardier’s board decision to authorize the aircraft for offer to customers, management said research and development (R&D) investment will be $2.5 billion.

This is up from the $2.1 billion price tag originally envisioned for the CSeries with costs spread three ways – a contribution split with suppliers, the airframer, and Canadian, British and Quebec governments.

The increase reflects inflation as well as changes to the technological changes planned for the aircraft, including an all-composite wing, says Bombardier executives.

Additionally, they say, capital costs for the CSeries will be about $700 million.

The total $3.2 billion cost of development and capital investment will, as before, be shared one third by suppliers, one third by investment from various governments and one third by Bombardier.

Significantly, however, the break-down might change. Discussions with governments in Canada, UK and the United States are now going on, reveals Bombardier Aerospace president and chief operating officer Pierre Beaudoin. The exchange rate of the Canadian dollar is prompting the company to look more closely at some US states, he says.

So far, Bombardier has already spent $145 million on R&D. The $3.2 billion expenditure now being projected does not include this amount.

The list price for the 110-seat version of the CSeries is expected to be in a “lower $40 million” range while the 130-seater will be on the higher end of that, adds Bombardier president of new commercial aircraft programmes Gary Scott.