Bombardier's CSeries has '5-year lead' on competitors

Bombardier (TSX:BBD.B) says its new CSeries aircraft's cost and environmental advantages give it a five-year advantage on competitors.

"I think we've got a comfortable five-year lead," Benjamin Boehm, vice-president of commercial aircraft, said after the aircraft manufacturer officially broke ground on a new testing centre in Mirabel, north of Montreal.

The new 110- to 145-seat airplane promises to cut greenhouse gas emissions, ensure substantial fuel savings and be four times quieter than existing aircraft of similar size.

The CSeries will set a new standard in the industry by consuming as little as two litres of fuel per passenger for each 100 kilometres of flying.

The plane, which will be made largely of lightweight composite and aluminum lithium materials, would help airlines meet stricter environmental standards in the works for Europe.

Airlines assessed quotas for greenhouse gas emissions would be able to fly more planes if they used a CSeries that produces less of the harmful emissions, while spending less on fuel.

"If you can produce an airplane that sucks less fuel and spits out less carbon, you get a double savings," he said.

The new aircraft is slated to enter service in 2013 after undergoing rigorous testing to avert problems that have plagued Boeing and Airbus.

All flight commands, avionic circuits, electric circuits and climate controls will be tested at the facility inaugurated Tuesday.

The plane will ultimately undergo 1,800 hours of flight tests near Mirabel airport, or about two flights per day.

'A reflection of our confidence'

Bombardier Aerospace president Guy Hachey said the CSeries represents a new chapter in the company's future.

Despite the short-term challenges facing commercial aviation, the long-term prospects for the industry remain extremely positive, he said inside the giant hangars where several CRJ900s are in final stages of assembly.

"The CSeries is a reflection of our confidence and our unshakable commitment to the future," he said.

"A well-built airplane is capable of withstanding turbulence.... We may need to adjust our course, but we will not turn back."

On the Toronto Stock Exchange, Bombardier shares gained two cents at $4.97 in early afternoon trading.