JetBlue to Order 60 Airbus CSeries Jets

By Robert Wall 

JetBlue Airways Corp. plans to order around 60 CSeries jetliners from Airbus SE, people familiar with the deal said, as the European plane maker's rivalry with Boeing Co. extends into the market for smaller planes.

JetBlue is already a big Airbus customer. But the New York-based carrier had also considered upgrading or replacing its fleet of small jets made by Brazil's Embraer SA rather than purchasing the rebranded CSeries that Airbus took control of on July 1 in a partnership with Canada's Bombardier Inc.

That decision will intensify the rivalry that drove Airbus and Boeing to seek partnerships with smaller plane makers. Airbus and Boeing are looking to their respective partners, Bombardier and Embraer, to yield cost savings by helping pressure suppliers to offer bigger volume discounts.

The deal could be worth about $5 billion before discounts standard to such contracts and be announced as early as Tuesday, these people said.

A JetBlue representative wasn't available to comment.

Boeing said last week that it will take control of Embraer's jetliner business. The plan requires government approvals and isn't expected to close until late next year. Until then, Boeing is barred from marketing Embraer's planes.

A Boeing spokesman declined to comment on Jetblue's planned purchase from Airbus.

Bombardier had struggled to win big orders for the fuel-efficient CSeries outside of a 75-jet deal in 2016 with Delta Air Lines Inc. Bombardier lacked the sales heft of Airbus and Boeing to convince airlines to commit to a brand new plane.

Airbus on Tuesday puts its stamp on the program, renaming the jets the A220-100 for the 100-seater model and A220-300 for the 130-seater. It is dropping the earlier CSeries CS100 and CS300 designations.

Airbus Chief Executive Tom Enders last week said the first results of the CSeries takeover would be visible soon. The Toulouse, France-based plane maker said it doesn't comment on discussions with potential customers.

The fortunes for the CSeries began to improve in 2016 when Delta agreed to buy 75 CSeries planes with options for 50 more. Boeing challenged the transaction with U.S. regulators, accusing the Canadian rival of unfairly selling the plane below cost. A U.S. trade panel ruled against the Chicago-based manufacturer.

Bombardier is building a new assembly plant in Alabama to build CSeries jets for the U.S. market.

Andrew Tangel contributed to this article.

Write to Robert Wall at [e-mail]

(END) Dow Jones Newswires

July 10, 2018 16:48 ET (20:48 GMT)

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