AIRSHOW-Bombardier faces challenge to haul in CSeries orders

By Andrea Shalal and Tim Hepher
DUBAI, Nov 12 (Reuters) - Canadian planemaker Bombardier
BBDb.TO left the Dubai Airshow with pride restored after
exhibiting its CSeries, but aware it faces a crucial task in
revitalising sales of the troubled jet.
Fred Cromer, president of Bombardier Commercial Aircraft,
reported growing interest in the long-delayed aircraft as it
nears certification, and said he was confident that Bombardier
could finalise a "sizeable order" with a big-name airline.
The future of Canada's challenge to industry giants Airbus
AIR.PA and Boeing (N:BA) BA.N was thrown into doubt earlier this
year as the company bled cash, but Quebec last month agreed to
invest $1 billion to help save jobs.
"Once you check a box, then that's a step forward. You don't
have to worry about that anymore," Cromer told Reuters at the
Dubai Airshow, referring to the company's improved finances.
"I wouldn't necessarily call it a sigh of relief; it just
means you're moving onto the next box."
Bombardier flew the CS100 aircraft to Dubai as part of a
push to drum up dozens of orders ahead of the jet's entry into
service next year.
Cromer and other executives cited strong interest, including
from the Gulf, but left without a deal in hand.
To maintain a credible presence, the company must now come
up with fresh orders before the industry's biggest gathering in
Farnborough, UK, next July, senior industry sources said.
Sources familiar with the matter said the company was in
talks with a large airline for "more than a few" jets.
Key targets are United Airlines UAL.N and JetBlue JBLU.O
as well as Air Canada, according to other sources.
Bombardier is also in talks that could result in additional
sources of cash for the aerospace division, sources said.
Bombardier hopes to announce its next steps on aviation and
rail activities at an investor conference on Nov. 24.
Cromer gave no details, saying only that Bombardier remained
open to additional partnerships.
Talks to sell control of the CSeries to Europe's Airbus
collapsed after they became public last month.
Bombardier still aims to sell 300 jets before the plane
enters into service in the first half of 2016. It currently has
243 firm orders for the new jet.
The narrowbody CSeries competes against the smallest Boeing
737 and Airbus A320-famly jets.
Cromer acknowledged Bombardier faced pressure on prices, but
insisted the plane would succeed given its lower seat-per-mile
operating costs.
Critics say the company is paying the price for failing to
offer competitive enough discounts when the plane was launched.
Cromer, former president of International Lease Finance
Corp, said Bombardier needed to price its planes aggressively
but was not planning to cut those prices to "ridiculous" levels.
He said the company was also exploring alternative credit
financing and leasing options to aid in marketing.
"We're looking at partnerships if it's good for Bombardier,
but more importantly, if it's good for our customers," he said.
"You can find ways to get creative for the right deal."