Bombardier shares take off in wake of big JetBlue order

MONTREAL — Shares of Bombardier Inc. hit a nearly sevenyear high Wednesday after the C Series jet it developed secured the largest order since the announcement of a joint venture with Airbus.

JetBlue Airways Corp. ordered 60 of the aircraft, renamed by Airbus as the A220-300, for delivery starting in 2020 with the option for another 60 starting in 2025.

The firm deal announced late Tuesday was valued at $5.4 billion US at list prices, but airlines typically receive large discounts.

The airline said the plane’s economics was the primary motivation rather than Airbus taking majority control over the aircraft’s joint venture, which happened after JetBlue launched its 15-month review.

“The marriage between Bombardier and Airbus was a secondary factor,” chief financial officer Stephen Priest said in a conference call.

Bombardier shares climbed to $5.58 in early trading on the Toronto Stock Exchange, a price last reached in August 2011. They closed up three cents at $5.43 in the afternoon session.

Five A220 planes are scheduled to be delivered in the first year, ramping up to a high of 22 in 2024.

JetBlue will become the first American airline to fly the larger A220-300 with 130 to 140 seats. Delta Air Lines Inc. ordered 75 A220-100s in the spring of 2016. The U.S. low-cost airline said it could switch some of its order to the smaller, 120-seat A220-100 plane.

JetBlue said the decision to order the aircraft was driven by three strategic factors: profitability from the plane’s low operating costs, flexibility to use both aircraft models and its range.