C Se­ries se­cures sur­prise $1.1bn jet order boost

Irish Examiner - - Business -

Bom­bardier is clos­ing in on the sec­ond deal for its C Se­ries jet since reach­ing a land­mark agree­ment with Air­bus a few weeks ago that will see the Euro­pean air­craft maker take con­trol of the pro­gramme to help re­vive the plane’s for­tunes.

Egyp­tAir Air­lines plans to buy 12 of Bom­bardier’s CS300, the big­gest vari­ant of the nar­row-body jet, and has op­tions for a fur­ther 12, the car­rier said at the Dubai Air Show. The deal is val­ued at $1.1bn (€943m) be­fore dis­counts.

The ac­cord is a sig­nif­i­cant win for Bom­bardier and its op­er­a­tions in Belfast where it em­ploys 4,000 peo­ple, which gains an­other cus­tomer for its new jet less than a month af­ter the com­pany agreed to cede con­trol of the C Se­ries to Air­bus in ex­change for the Euro­pean plane­maker’s mar­ket­ing heft, man­u­fac­tur­ing ex­per­tise and fi­nan­cial mus­cle.

The air­craft had been plagued by de­lays and cost over­runs, and re­cently was hit with 300% tar­iffs in the US af­ter a trade com­plaint by Boe­ing.

Bom­bardier ex­pects to turn Egyp­tAir’s let­ter of in­tent into a firm order by the end of 2017, com­mer­cial air­craft chief Fred Cromer told re­porters from Dubai. The agree­ment makes good on the com­pany’s ex­pec­ta­tions the Air­bus deal.

Ear­lier this month, Mon­treal-based Bom­bardier said an uniden­ti­fied Euro­pean cus­tomer was planning to buy 31 C Se­ries air­craft with op­tions for 30 more.

That’s a dis­tinct turn­around, as prior to the deal Bom­bardier hadn’t sealed a ma­jor pur­chase since Delta Air Lines or­dered 75 planes in April 2016.

The CS300 car­ries a list price of $89.5m, al­though dis­counts of 50% or more are com­mon in the in­dus­try.

Bloomberg

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.