Bombardier’s deal with Delta Air lines: Here’s what you need to know

Delta Air Lines has placed what is the largest order for Bombardier’s troubled CSeries passenger jet. Here’s five things to know about the deal:

What is the CSeries: It is Bombardier’s latest commercial jet offering. The CSeries is a brand new aircraft that has been designed to be quieter and more fuel-efficient, making it cheaper to operate and more comfortable. But the development of the jet has been plagued with delays and is billions over budget.

What it means: The deal makes Atlanta-based Delta the company’s largest CSeries customer. Delta is one of the world’s largest airlines and gives Bombardier a key endorsement that could help boost sales to other airlines that may be considering buying the CSeries.

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READ MORE: A timeline of Bombardier’s journey from building ski-doos to making planes

What has Delta ordered: The U.S. airline has placed a firm order for 75 CS100 aircraft and obtained options to purchase another 50 aircraft. The deal includes certain delivery flexibility rights, including the ability to substitute the larger CS300 aircraft. Deliveries are expected to start in the spring of 2018.

Price: Based on the list price, the value of the 75 firm orders for the CS100 is US$5.6 billion, according to Bombardier. However, big airlines making large orders can typically negotiate a better deal. What Delta is actually paying for the jets was not disclosed, but is likely less than that amount.

READ MORE: Delta deal’s signed, but Bombardier still wants federal cash

Other customers: Swiss International Air Lines is expected to receive the first CS100 in June. Bombardier signed a letter of intent with Air Canada earlier this year for 45 CS300 aircraft with options for another 30 CS300 jets. The CSeries program is expected to enter service with a firm order backlog of more than 300 aircraft and up to 800 including options and other commitments.