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EgyptAir to buy 12 Bombardier aircraft for $1.1 billion
14 November 2017, 07:54 | Kelvin Horton
Bombardier is closing in on the second deal for its CSeries jet since reaching a landmark agreement with Airbus a few weeks ago that will see the European planemaker take control of the program to help revive the plane's fortunes.
At the Dubai Airshow on Tuesday, EgyptAir signed a letter of intent for 12 firm and 12 optional C Series CS300 aircraft.
MONTREAL-Bombardier Inc. said its deal with Airbus has yet to ignite new sales discussions, but existing efforts have yielded results as the manufacturer announced a potential order with Africa's largest airline. This includes firm orders for 12 CS300 aircraft with purchase rights for an additional 12 CS300s. The deal is valued at $1.1 billion before discounts.
"It's a great template and it is something that will followed extremely closely by the other carriers in the regions and the sub regions in the area". Egypt Civil Aviation Minister Sherif Fathy said last month that the government expected to pay about $3.3 billion of the cost to acquire 45 planes.
The US trade department imposed tariffs of 300% on the C Series as it upheld a complaint from Boeing over subsidies the aircraft received from the Canadian and United Kingdom governments.
Bombardier recently released its 20-year forecast for the African market, showing intra-regional traffic growing at 4.6% per year and the 60/150-seat fleet more than doubling over the period with the delivery of 550 aircraft. In October, it said it would impose an 80 percent duty on top of duties of almost 220 percent on the aircraft, a benefit for rival Boeing.
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