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Bombardier improved contract terms for IFC after a test aircraft caught fire during ground tests


Bombardier (Canada) improved contract terms for Russian lessor Ilyushin Finance Co. (IFC)

Bombardier (Canada) improved contract terms for Russian lessor Ilyushin Finance & Co. (IFC) after an engine of the new CSeries jet caught fire during ground tests, ITAR-TASS reports with reference to the CEO of IFC, Alexander Rubtsov.

"We have signed a contract modification agreement today, - he said at Farnborough 2014 airshow. – In particular, the delivery dates have been postponed". The delivery of the first jet has been rescheduled from November 2015 to April 2016.

According to Rubtsov, Bombardier has significantly improved contract terms for IFC due to the recent incident.

On May 29th 2014 an engine of CSeries test aircraft caught fire during ground tests. The aircraft was damaged too. The fire was caused by an oil supply line leakage. As a result the aircraft has not been demonstrated at Farnborough airshow.

IFC is one of the largest CSeries customers. The lessor’s portfolio includes 32 jets of the type. Only Republic Airways ordered more CSeries airliners (40 ones). The third largest CSeries customer is Swiss (30 jets).

"We may consider ordering more CSeries aircraft in future, but we need to analyze the program’s schedule first", - the CEO of IFC added.

IFC signed the contract for delivery of Bombardier CS-300 aircraft in February 2013. The agreement includes the firm order for 32 CS300 jets with an option for another 10 jets of the type. The value of this contract is $2,56 billion ($3,42 billion, including the option). The airliners should have been delivered to the customer during 2015-2018 period.

The single-aisle medium-haul CS-300 aircraft seating 130-150 passengers is the latest product of the Canadian airframer and a part of CSeries Family (includes CS-100 and CS-300 models). The jet’s range is 5,463 km. The airliner’s interior provides the passengers with a comfort comparable to wide-body aircraft. The liner is powered by two next-generation Pratt & Whitney PurePower PW1500G geared turbofan engines.

IFC ranked 50th in the lessors ranking made by Flightglobal. It is one of five Russia’s largest leasing companies. The company’s assets worth more than $1 billion. Following the results of 2013, the net profit of IFC amounted to 206 million rubles. The company has already delivered 53 aircraft to its clients and its backlog comprises 160 airliners.