Bombardier has lowered its 2017 delivery projection for the C Series narrowbody from a previous target of as many as 30 airplanes to between 20 and 22 due to a continuing shortage of Pratt & Whitney PW1500G engines. Speaking Thursday during the company’s third-quarter earnings call, Bombardier CEO Alain Bellemare explained that Pratt & Whitney held back delivery of the geared turbofans for new-production airplanes to concentrate on shipping spares to existing Airbus A320 operators that have experienced endurance deficiencies involving the engines’ combustor liners. Pratt & Whitney plans to finish testing fixes for the engines during the last two months of the year and begin applying them early next year.

Of 19 C Series airplanes delivered since the start of the program, Bombardier shipped 12 during the first three quarters of this year, including five in the third quarter. Given original expectation of between 30 and 35 deliveries for 2017, the financial effects of the expected revenue shortfall totals $300 million to $500 million, reported Bombardier CFO John Di Bert, who added that Pratt & Whitney has promised cash advances for the fourth quarter to support excess aircraft inventories at Bombardier’s Mirabel plant generated by the engine delays. 

For next year, Di Bert said Bombardier would take a “disciplined” approach to the production ramp, most likely delivering between 40 and 45 airplanes out of an originally projected total of 45 to 55. “We need to do a little bit more work with Pratt. We’ve go to figure out the sequence and the scheduling of engines into the next year,” said Di Bert. “At this point in time, what’s obviously very positive is we’re working with customers very closely. The aircraft in 2018 are all backed by customer orders that are firm.”

On another positive note, Bombardier announced that it signed a letter of intent with an unidentified European customer covering a potential firm order for 31 airplanes and an option for another 30. Asked whether Airbus’s plans to take a 50.1 percent stake in the program next year influenced the deal, Bellemare remained circumspect, suggesting negotiations on the deal started before the talks with Airbus began in August. “We had and still have a number of active campaigns ongoing, and this one is part of what the team has been doing for a while,” said Bellemare. “At the same time it is clear that Airbus coming into the program is adding confidence about the long-term success of the program. So I wouldn’t say that they were totally linked, but it’s clearly helping us to accelerate the sales momentum.”