Bombardier sells 12 CS300 aircraft to EgyptAir

Photo: Eric Piermont Archives Agence France-Presse
According to the published prices, the value of the firm serving the contract for 12 CS300 is valued at approximately US $1.1 billion.

The partnership between Airbus and Bombardier do not generate new discussions with potential customers of the CSeries, but it still allows the aircraft manufacturer in quebec to advance several cases.

 

The company has potentially won another important order in less than two weeks EgyptAir — the largest air carrier in Africa — could buy up to 24 CSeries aircraft.

 

Announced Tuesday at the air Show in Dubai, this letter of intent provides for the purchase of 12 CS300 — the larger version of the aircraft family, as well as options for 12 additional aircraft.

 

“The confidence of some customers increased as the force of some of the discussions,” explained the senior vice president of sales at Bombardier commercial Aircraft, Colin Bole, in a conference call from Dubai.

 

Based on list prices, the firm serving the contract is valued at approximately US $1.1 billion. This amount could double in the event that the carrier african decides to exercise all of the options. However, airlines are generally given significant discount.

 

According to Mr Bole, the arrival of EgyptAir already very present in the Middle East — as a customer of the CSeries will enable the family aircraft to consolidate its presence in this region of the globe.

 

“It would be difficult to bet on a better carrier to establish our presence in this region, he explained. It is a decision that will be extremely followed by the other companies of the region. “

 

The family of CSeries aircraft already Iraqi Airways, Saudi Gulf and Gulf Air among its customers.

 

The national carrier of Egypt, was already looking into buying the CSeries for some time, explained the president of Bombardier commercial Aircraft, Fred Cromer, adding that the involvement of Airbus had consolidated the confidence of the company in respect of the program.

 

For the president and chief executive of EgyptAir, Safwat Musallam, these new aircraft will allow the company established in Cairo of modernising its aircraft fleet.

 

“We selected the CSeries aircraft because of its excellent battery life, and perfectly suited to serve the national and regional levels cities arab neighbours, the Middle East and several european destinations “, he argues, by way of a press release.

 

Analyst Richard Abulafia, the american firm Teal Group, said that it was a good omen that a company like EgyptAir is displayed publicly, as a potential customer for the CSeries, even if it was only a letter of intent.

 

“Previously, many companies were afraid to buy a plane orphan whose production could cease [their activities], he explained during a phone interview. These fears are in danger of disappearing due to the involvement of Airbus. “

 

The letters of intent signed by EgyptAir as well as by a european client that is not identified for a firm order for 31 aircraft of the 2nd November last should be finalized by the end of the year. This should allow Bombardier to rely on more than 400 firm orders for the CSeries.

 

Complaint of Boeing

 

Meanwhile, Mr Bole indicated that the aircraft manufacturer continued to defend in the context of its dispute commercial with Boeing in the United States.

 

According to him, the american giant will not be able to prove that the CSeries him, has prejudice given that the company is not proposing an aircraft the size of the CS100 and that she was not invited to seek the order from Delta Air Lines.

 

It is this contract, announced in April 2016, up to 125 devices, which has prompted Boeing to file her complaint with the american authorities.

 

Mr. Cromer recalled that Bombardier was counting on contingency plans in the event of rates to punitive rates would continue to be applied to the CSeries will be assembled in Canada before being exported south of the border.

 

“Having announced our [new] assembly line in Alabama, we are working with Delta to ultimately deliver our flights from Mobile to our customers in the United States,” he explained.

 

The president of Bombardier commercial Aircraft has not wanted to move forward on the impact of tariffs on this second assembly line, the construction of which is estimated at more than US $300 million by Bombardier.

 

In the morning, on the Toronto stock Exchange, the title of the company was seven hundred, or 2,29 %, to trade at 3,13 $.

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