Bombardier announces breakthrough US jetliner deal

MONTREAL, Feb 25, 2010 (AFP) - Bombardier announced Thursday a breakthrough 3.06 billion dollar deal with Republican Airways that plunges the Canadian aircraft-maker into a US market dominated by industry titans Boeing and Airbus.

The Indianapolis-based holding company for six US regional airlines agreed to buy 40 of the 100-149 seat jetliners and signed an option to buy 40 more for a possible grand total of 6.34 billion dollars, Bombardier said in a statement.


The deal signifies Bombardier's first foray into the United States for its new C-series of jets and brings to 90 the number of CS300s it has sold since the plane's launch at the Farnborough Air Show in Britain in July 2008.

German flag carrier Lufthansa, the largest airline in Europe, and London-based Lease Corporation International Group were the first to place orders last year.

All of the jets, which the Canadian manufacturer claims burn up to 20 percent less fuel and emit up to 20 percent less carbon emissions than competing models, are to be delivered starting in 2013.

"This major CSeries aircraft order from our first North American customer reflects the confidence Republic Airways has in Bombardier's ability to deliver a game-changing aircraft," said Bombardier commercial aircraft president Gary Scott.

The plane's fuel economy will give Republic Airways "a major competitive cost advantage," said Republic Airways president Bryan Bedford, who also lauded its wide aisles, spacious seating and extra large windows.

Its entry into the US market brings Bombardier into direct competition for the first time with Boeing's 737 and Airbus 319 in the smallest class of long-range passenger aircraft.

Investors responded to the news by driving Bombardier's stock price up seven percent in Toronto, to 5.87 Canadian dollars (5.52 US) as one analyst said to "expect a snowball effect" on Bombardier jet sales.


by Sibel Utku Bila
(c) 2010 AFP