Bombardier in talks with EgyptAir for $1.1 bln CSeries deal-Bbg (BBD.)

Posted November 15, 2017

With the EgyptAir announcement, up to 85 new CSeries jets are covered by commitments disclosed since Bombardier agreed to transfer a majority stake in the small narrowbody programme to Airbus in a deal set be finalised in the second half of 2018.

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 Tuesday at the Dubai Air Show.

Bombardier has signed a letter of intent for up to 24 CS300 aircraft with Egyptair, which includes an initial 12 planes and purchasing rights for another 12.

EgyptAir Chairman Safwat Moslem told a Dubai Airshow news conference the CS300 aircraft would be used by the airline's domestic and regional carrier EgyptAir Express.

Earlier this month, Bombardier also revealed it had secured orders for 31 aircraft from an unnamed European customer.

As of September 30, Bombardier had taken 360 total orders for CS100s and CS300s, and delivered just 19.

Bombardier is engaged in a trade dispute with Boeing, which complained that the CSeries had been subsidized and sold below cost in the United States. The jet, the larger of two C Series versions, can carry 130 to 160 passengers.

C-Series wings are made at Bombardier's Belfast operation, providing employment for about 1,000 people.

The shopping spree, following months of negotiations, marks an expansion push for Egypt's flag carrier after it weathered slumping tourist visits and a fatal crash past year. Egypt civil aviation minister Sherif Fathy said in October that the government expected to pay about $3.3bn of the cost to acquire 45 aircraft.