Published: Tue, November 14, 2017
Finance | By Loren Pratt

EgyptAir to buy 12 Bombardier aircraft for $1.1 billion

EgyptAir to buy 12 Bombardier aircraft for $1.1 billion

Bombardier said on Tuesday that EgyptAir had signed a letter of intent to purchase 24 CS300 jets from the Canadian company.

Less than a month after Airbus agreed to rescue Bombardier's struggling C Series jet program, Bombardier has announced a second order for the narrowbody passenger plane.

"We anticipate both of them by year end", Commercial Aircraft President Fred Cromer told reporters. That would raise the number of firm C Series orders to more than 400. Cromer said both sales had already being under negotiation and were not the result of the Airbus venture. This includes firm orders for 12 CS300 aircraft with purchase rights for an additional 12 CS300s. The deal is valued at $1.1bn before discounts.

Bombardier's deal with EgyptAir follows signed agreements with Iraqi Airways, Bahrain's Gulf Air, among other Middle East regional carriers.

The total order would be valued at almost $2.2 billion, Bombardier said, at current list prices.

The EgyptAir letter of intent and a deal for up to 31 planes announced November 2 with an undisclosed customer are expected to be firmed up by the end of the year. The aircraft had been plagued by delays and cost overruns, and recently was hit with 300% tariffs in the United States after a trade complaint by Boeing Co.

A USA trade commission will decide in early 2018 on whether to impose duties of almost 300 percent on the CSeries, after Boeing complained the planes had been subsidised and sold below cost in the United States.

EgyptAir is the national airline of Egypt.

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