(Corrects paragraph 6 to remove repetitive numbers)
* Bombardier woos new CSeries buyers at key airline meetings
* Accounting charge sheds rare light on aircraft pricing
* Bombardier CEO says CSeries re-launched and 'here to stay'
By Tim Hepher and Allison Lampert
DUBLIN/MONTREAL, June 3 (Reuters) - Bombardier BBDb.TO
performed a high-stake sales pitch for its CSeries jet at 30,000
feet on Friday, hoping to persuade more than two dozen airline
bosses to buy the industry's newest fuel-saving model while
reining in discounts.
The Canadian planemaker flew Star Alliance bosses on board
its 110-seat CS100 between airline gatherings in Europe where it
sought to preserve momentum after winning a lifeline order for
the money-losing jet from Delta Air Lines (NYSE:DAL) DAL.N .
"We are in a good place today. We have the contracts ready
for you as you exit the plane," Bombardier Chief Executive Alain
Bellemare joked to the 28 leaders on board.
Just over a year ago, Bombardier might have had trouble
rounding up as many CEOs after seeing Canada's aerospace
ambitions waver under the pressure of cash shortages.
But while the project survived a near-death experience with
Delta's discounted order, Bombardier's rivals and others in the
industry predict it will remain on the rack a while longer as
others demand equal bargains, keeping the CSeries in the red.
"I want the best deal, better than Delta," said Ethiopian
Airlines CEO Tewolde Gebremariam.
He probably won't get that, having expressed interest in
10-15 jets rather than 75 bought by Delta. But his remark
illustrates Bombardier's challenge in narrowing CSeries losses.
"The question is whether or not Bombardier will be
successful in raising prices," said Bertrand Grabowski, a
managing director of Germany's DVB Bank.
"For this to happen, it needs a few conditions and one of
them is a steady growth market."
Bombardier's task is not made easier by an outbreak of
transparency in the secretive jet market after it was forced by
Canadian accounting rules to take a $500 million charge for the
Delta deal and two others totalling 127 planes.
Rival jetmakers and analysts quickly calculated Delta had
paid $22-23 million a plane, a whopping two-thirds discount.
Macquarie analyst Konark Gupta wrote Bombardier could have
difficulty getting the CSeries to breakeven by 2020-21 if it
keeps selling at such prices. Others say it has limited choice.
"I think they have got their work cut out trying to convince
others to pay maybe $10-15 million more (than Delta) - why would
they?" said Airbus executive vice-president Chris Buckley.
'IMPOSSIBLE' STANDARD
Bombardier additionally faces accusations of price dumping
from rival Embraer EMBR3.SA , which it denies.
"We have to show the market that this price level is
unsustainable," said commercial chief Paulo Cesar Silva said.
"No company can be viable under the conditions that
Bombardier offered in the Delta campaign. That won't be the
market standard. It's impossible."
Industry sources say Airbus leased jets as try-outs for as
little as $1 a month to enter the U.S. market in the 1980s, but
found itself trapped at low prices for years after that.
But deals are usually kept secret and Bombardier's provision
has shed unusual light on its flexibility.
"The next big guy Bombardier talks to is going to say 'will
you be taking a $500 million loss for me'?" an industry source
said.
Bombardier executives respond that in the cut-throat
airliner world, negotiations always start far apart.
They acknowledge using 'one-off' price tactics to reboot the
troubled project but deny discounting as much as reported, and
say others' estimates fail to reflect shifting costs.
Bombardier seeks new customers in every continent including
a major low-cost carrier to diversify its order book and
demonstrate it can serve different business models.
While chasing new customers, it must also prevent existing
ones delaying or cancelling.
Industry sources estimate as many as 100 of the 325 orders
are at risk owing to the patchy finances of early customers.
But the recent order boost does give the company more
visibility on production and strengthens the profile of its
order book: two other parameters watched by investors.
"If you question some orders, we would not debate that,"
Bellemare said. "We have re-launched the programme. A year ago
there were a lot of questions about the CSeries' future: not any
more. The aircraft is here to stay."