Canadian manufacturer of both planes and trains Bombardier at the second quarter of 2016 received net loss of $490 million versus $125 million of profit for the same period of 2015, revenues decreased by 6.7%, to $ 4.3 billion. The foundation of such results was the loss of revenue in the business aviation segment (19%, to $1.4 billion). The commercial passenger aircraft sales grew by 28% to $764 million, but the margin was negative due to the high expenses on «CSeries» project.  This being said, Bombardier restructured the contract of delivery CS300 with the only CSeries customer in Russia IFC.

The CSeries is a family of narrow-body, twin-engine, medium-range jet airliners at 110 and 130 seats. Range is up to 5.5 thousand km, catalogue price - $71.8 million and $82 million. The first operator is Swiss. The volume of firm orders is 127 aircrafts worth nearly $10 billion, also there are 80 options.

In 2013 IFC signed the agreement to buy 32 CS300 aircrafts with an option for another ten aircrafts. In 2014 seven of this option have been transformed into the firm order. However now it comes only to 20 CS300 aircrafts and one turboprop Q400, the option gives an additional five Q400. Such decision has been made due to the «current market demands», said Bombardier. It was planned that CSeries will occupy the niche which wouldn’t recovered by SSJ100 and MC-21. MC-21 and CS300 are unified at 60% by components and equipment. By the agreement of intent with Canadians IFC can provide the access of Bombardier’s service network to the MC-21 customers. Russian airlines’ respondents do not comment on the interest in CSeries.

IFC made it clear that it’s only a «modification»of the contract. «The adjustment is related to the fact that Canadian financial institution didn’t cooperate with the Russian party and also didn’t participate in the transaction», - explained in the company. In early 2014 with the sanctions imposed by Canada against Russia on the background, IFC and Bombardier’s  contract was nearly in jeopardy because local export development agency EDC suspended working with Russian companies and refused to provide lower rate credit under the contract. In addition to the increased cost of funding, IFC has revised the format of participation in the transaction due to the repeated postponements. The first delivery was scheduled for the end of 2015 but later it was moved to the second half of 2016. Ultimately, due to the certification and start of the production delay the supply date shifted to the end of 2018.

Vladimir Karnozov, the Aviation Explorer expert, says, that since the moment of signing the first agreement in 2011 and the contract in 2013 both parties had major changes. Russian market’s effective demand is decreasing with stagnation of economy on the background, exchange rate is reducing. The expert is explaining that many airlines are cutting their foreign fleet because the ticket sales are in rubles and the lease payments are in the currency, not to mention that domestics flights are mainly unprofitable. On the other hand, Bombardier has experienced a number of difficulties with the CSeries’ launch including the cost overruns on research and developments and the start of production. But neither Bombardier nor IFC can decline the transaction, so they both have to look for the compromises, and it is reflected in revision of the agreement’s terms. The expert added that in the absence of demand in Russia IFC can place the aircrafts in other markets, the company has the experience in working with foreign airlines.