Canadian aircraft manufacturer Bombardier on Friday announced the sale of 12 C Series aircraft to EgyptAir in a deal worth $1.1 billion. The company said it signed a letter of intent last month for the sale of the 160-seat CS300 planes, with an option for another 12, and that was converted into a firm purchase agreement.
The deal would be worth nearly $2.2 billion if EgyptAir buys the additional 12 planes, according to a statement from Bombardier Commercial Aircraft. This order, together with another for 31 aircraft from an unidentified European company in early November, has given a boost to the Canadian manufacturer after seeing delays and the doubling of costs in the C Series program.
"The aircraft is performing exceptionally well, the industry recognizes the C Series as best in class, and this order from another well-established airline is testament to its tremendous value," said Fred Cromer, president of Bombardier Commercial Aircraft.
Bombardier also got a boost from a deal with European aerospace firm Airbus which took the majority stake in the subsidiary building the C Series single-aisle planes, just as its American competitor Boeing convinced President Donald Trump's administration to impose import tariffs of nearly 300 percent on the planes. The Canadian government is exploring the possibility of appealing that decision.
Boeing filed the case against its Canadian rival after Delta Air Lines ordered 75 of the C Series planes. The American manufacturer claimed Bombardier received unfair subsidies from the Canadian government that allowed it to sell planes at below the cost of production.
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