Bombardier launched its ambitious CSeries aircraft programme at the Farnborough Air Show, saying that launch customer Lufthansa had signed a "letter of interest" for 30 of these aircraft, along with 30 options. The aircraft will be powered by the new Pratt & Whitney GTF engine and will be priced at $46.7 million. (See: Launch presentation of Bombardier CSeries Aircraft)

The Lufthansa order, if fully exercised, will be worth $2.8 billion. Entry into service for these aircraft is slated for 2013.

Bombardier president and CEO, Pierre Beaudoin, noted that the German flag carrier was also the launch customer for the popular 50-seat CRJ200. As for now, he said, the company was in active discussions with a number of prospective customers for the aircraft.

Lufthansa senior VP-corporate fleet, Nico Buchholz, said the aircraft would be used for both fleet replacement and expansion. The carrier was yet to make up its mind about the version - 110 or130 seat - that it would opt for. Officials from both companies indicated that the deal would likely be finalized by year end.

The CSeries project is aimed at transforming the Bombardier group's operations. By 2017-18, when the programme reaches peak production levels, the aircraft could likely add $5bn of annual turnover to the group.

Bombardier has reported sales of $17.5 billion for the last financial year, ending January 2008.

Bombardier is a world leader in the manufacture of business jets, where it leads the world by the value of deliveries, and of regional commercial jets. The CSeries marks an ambitious gamble by the company, in that it is trying field an aircraft that in terms of its capacity will, for the first time, encroach upon the territory of the two commercial aircraft manufacturing giants, Boeing and Airbus.  

The 110-130 seat capacity of the CSeries will easily match the Airbus 318's 109-seat capacity, as well as the Boeing 737-600's  110-132 seat capacity. A larger variant will even offer 145 seats in a packed all-economy configuration.

Compared to the older legacy aircraft, the CSeries will also represent a technology leap. They will be  powered by new-generation geared turbofan engines from Pratt & Whitney which are expected to cut fuel consumption and carbon dioxide emissions by around 20 per cent and also slash operating costs by 15 per cent, as compared to similar-sized existing aircraft.

Gary Scott, president of Bombardier Aerospace's commercial aircraft division, said the group was forecasting a market for 6,500 jets in the 100-149 seat segment in the next 20 years and his company was hoping to capture a market share of up to 50 per cent.

Bombardier said it is investing $2.6 billion in research and development of the new aircraft.

It also said that Mirabel has been selected as the final assembly plant, with the company's Belfast facility slated to develop and manufacture the wings. Its Saint-Laurent site will manufacture the aft fuselage and cockpit, while China's AVIC I will supply the fuselage and doors.

While Rockwell Collins would supply the avionics systems, C&D Zodiac will handle the design and production of the interior package. Parker Hannifin would supply the integrated fuel and hydraulics system and Liebherr-Aerospace Toulouse SAS would design and produce the air management system including the environmental control and cabin pressure control.