US $1.1B C Series deal with Egypt Air has wings

MONTREAL/ CA I RO • Bombardier Inc. is in advanced discussions with Egypt Air over a potential US$ 1.1 billion order for C Series jets, adding to the program’s momentum from a recent partnership with Airbus SE, people familiar with the matter said.

An agreement, which is likely to include a firm order for 12 CS300 jets, could be announced as early as Tuesday at the Dubai Air Show, said the people, who asked not to be named because the talks are private. Options to buy another dozen planes are also under discussion, said one of the people. There is no guarantee that a deal will be reached.

The purchase would give Bombardier another customer for its new jet less than a month after the company agreed to cede control of the CSeries to Airbus in exchange for the European planemaker’s marketing heft and manufacturing expertise. The aircraft had been plagued by delays and cost overruns, and recently was hit with potentially crushing tariffs in the U. S. after a trade complaint by Boeing Co.

For EgyptAir, the order is part of an expansion push after it weathered slumping tourist visits and a fatal crash last year. Egypt Civil Aviation Minister Sherif Fathy said last month that the government expected to pay about US$ 3.3 billion to help its flag carrier acquire 45 planes and has been in talks with Airbus and Boeing.

Bombardier declined to comment for this story, and EgyptAir didn’t respond to requests for comment.

Bombardier Chief Executive Officer Alain Bellemare told analysts two weeks ago that he expected sales of the CSeries would accelerate following the deal with Airbus.