Bom­bardier deal with Egypt Air for C-Se­ries jets

The National - News - - BUSINESS - Sarah Townsend

Egyp­tAir, the North African coun­try’s na­tional car­rier, signed a US$1.1 bil­lion deal with Canada’s Bom­bardier for 12 mix-range jets with the op­tion to buy ad­di­tional air­craft.

The agree­ment in­cludes a firm order for 12 CS300 jets with pur­chase rights for an­other 12 air­craft, which would boost the value of the agree­ment to $2.2bn if ex­er­cised, the com­pany said yes­ter­day.

“We se­lected the C Se­ries air­craft be­cause its ex­cel­lent range will al­low us to best serve do­mes­tic and re­gional des­ti­na­tions, in­clud­ing neigh­bour­ing Arab ci­ties, the Mid­dle East as well as Euro­pean des­ti­na­tions,” said Safwat Musal­lam, chair­man and chief ex­ec­u­tive of the Cairo car­rier.

The ex­pan­sion by the Egyp­tian air­line will be a boost to the coun­try’s tourism in­dus­try af­fected by the de­val­u­a­tion of the pound and ter­ror­ism in the Si­nai penin­sula.

The North African coun­try’s econ­omy is on the re­bound. The Egyp­tian econ­omy picked up in the fis­cal year end­ing June 2017, grow­ing by 4.2 per cent, beat­ing pro­jec­tions of 3.5 per cent growth, ac­cord­ing to the IMF.

The or­gan­i­sa­tion, based in Wash­ing­ton, agreed ear­lier this month to the dis­burse­ment of a $2bn loan af­ter a re­view of Egypt’s eco­nomic re­forms. The new air­craft will be used by Egyp­tAir Ex­press and the car­rier ex­pects to be the re­gional launch cus­tomer for the jets in the re­gion. The planes will be will be used to re­place small, nar­row-body air­craft in the fleet as part of the air­line’s strate­gic plan, Mr Musal­lam said.

Last month, Air­bus agreed to buy a ma­jor­ity stake in the Cana­dian plane maker CSeries pro­gramme. The CS300, the larger of two ver­sions made by the Mon­treal com­pany has a list price of $89.5 mil­lion be­fore dis­count. The air­craft can carry 130 to 160 pas­sen­gers.

“We look for­ward to ex­pand­ing our net­work with the CS300,” Mr Musal­lam added.

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