Bombardier’s CS300 takes maiden flight

Bombardier on Friday said it completed a public offering, and saw the first flight of its newest airliner.

Based in Montreal, Canada, the parent company of Learjet said in a news release that it closed its previously announced offering, netting it $1.1 billion Canadian from more than 487 million “subscription receipts” priced at $2.21 Canadian. Those receipts, which are being held in escrow, will convert to shares once current shareholders approved the issuance at a special meeting set for March 27, Bombardier said in the release.

If the issuance doesn’t receive shareholder approval, Bombardier said holders of the receipts “will be entitled to receive an amount equal to the full subscription price thereof plus their pro rata share of the interest earned or other income generated on such amount.”

The company said in Friday’s release that the public offering will be used for working capital and general corporate purposes.

Bombardier has been beset by cash flow problems as it works through a series of delays on its CSeries airliner program, which is two years behind schedule. And development costs have risen to $5.4 billion.

The company also has “paused” development of its Learjet 85, resulting in a $1.4 billion write-off and the lay off of 620 employees in Wichita and about 380 at its plant in Mexico.

But on Friday, Bombardier was focused on good news: a successful first flight of its CS300, the larger variant of the CSeries airliner, with seating for up to 160 passengers.

The narrowbody passenger jet was airborne for about five hours, Bombardier said in a news release Friday afternoon, and reached an altitude of 41,000 feet and 293 miles per hour.

The CS300 was originally scheduled to fly on Thursday but was delayed by weather.

The CS300 accounts for about two-thirds of the CSeries backlog, Bombardier officials have said. The company said it has booked orders and commitments for 563 CSeries airliners. The CSeries also includes the smaller CS100, which is under flight test at Bombardier’s Wichita site.

Rob Dewar, vice president of Bombardier’s CSeries program, said in the release that the CS300 will join five CS100s that are currently in flight tests and have accumulated more than 1,000 flight-test hours.

“We are confident the CS100 aircraft will be certified in the second half of 2015, followed closely by entry-into-service,” Dewar said. “The CS300 airliner is expected to follow about six months later.”

The CSeries is intended to compete directly with the Boeing 737 and Airbus A320 family of airliners.

Wichita-based Spirit AeroSystems manufactures the CSeries’ pylons, which are used to attach the engines to the wings.

This story was originally published February 27, 2015 at 11:00 AM with the headline "Bombardier’s CS300 takes maiden flight."