Quote:
Originally Posted by Bigtime
Outta left field (and probably with some HUGE discounts from Bombardier), Air Canada is going to purchase the C Series as part of their fleet renewal plans:
http://aircanada.mediaroom.com/index.php?s=43&item=984
Letter of Intent signed for up to 75 (45 firm plus 30 options) CS300, deliveries to start in late 2019 through 2022. They are replacing the Embraer 190's with the first 25 deliveries.
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Huge discounts from BBD, Quebec drops their lawsuit for no costs to AC (the government won round one), Federal government agrees to amend the AC Public Participation Act (ACPPA). Additionally I suspect the AC won a lot of goodwill with the current Liberal gov't.
The goodwill is the unsung advantage for AC. Essentially AC has purchased the CS300 over the 737-7, where WS did the opposite. Further this week WS has turned down the CS300.
At some point in WS international widebody plans the airline will want to have access to international route rights. Traditionally in a two airline scenario (the last being 1990s between AC and CP) the allocation of route rights are much of a political hot potato as pipelines and national resource extraction.
I predict the door is closing on WS desire to get into slot controlled non-open skies routes. The more WS says the 737-7 is the best aircraft, the more they undermine GoC and Quebec's support for airline manufacturing business.
If WS ever needs help getting into China, Japan, LHR, CDG, etc. they will have to get route authorities from Fed's.
The final kicker, it would not surprise me if the Federal Government pulls the French language provisions of ACPPA and places them into the Transport Canada Act. Suddenly WS and Porter will have to abide by the french language provisions. This will cost WS millions to implement and tie up Management resources for years. For AC the cost is zero because they have complied from day one.