Egyptair to buy 12 Bombardier aircraft

Posted November 15, 2017

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

European plane maker Airbus SE recently agreed to take a majority stake in the C Series program, in exchange for Airbus's purchasing and marketing power and support for the aircraft that had few orders due to doubts over its future.

Airbus has vowed to cut the aircraft's production costs and secure thousands of new orders for the plane, which Bombardier spent more than $6 billion to develop.

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As part of the Airbus venture, Bombardier has said it would invest $300 million to set up an Alabama assembly line for CSeries purchased by American carriers.

Bombardier expects to turn EgyptAir's letter of intent into a firm order by the end of 2017, commercial aircraft chief Fred Cromer told reporters on a conference call Tuesday from Dubai.

"We are respecting the customer's wishes to not disclose the identity", Cromer said from Dubai, referring to the European buyer.

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EgyptAir is Bombardier's latest Middle East customer, having already signed agreements with Iraqi Airways, Bahrain's Gulf Air, among other regional carriers.

The total list-price value of the deal rises to $2.2 billion if all options are exercised. 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.

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