www.bombardier.com
Bombardier is a global transportation company, present in more than 60 countries on five continents focused on rail and aerospace. With 60,000 employees, Bombardier designs, manufactures, sells and supports commercial and business jets, as well as rail transportation equipment, systems and services.
Bombardier inks deal for up to 20 CS 300 aircraft with Latvia's airBaltic, valued at up to $1.57-bln
Bombardier Aerospace (TSE:BBD.B) said Tuesday that Latvia-based airBaltic has signed a letter of intent to buy 10 CS 300 aircraft, with purchase rights for another 10 CS300 jetliners.
Based on the list price of the airliner, the firm-order contract for 10 aircraft is valued at US$764 million, with the deal worth as much as $1.57 billion should the 10 purchase rights be converted to firm orders.
"The CSeries aircraft program continues to reach new milestones, expanding into new markets with unique applications," said Bombardier’s president, Mike Arcamone.
"As the newest customer to join the CSeries aircraft program, airBaltic - known for being innovative - demonstrates the growing demand and need for unmatched technologies and operational flexibility."
The new CSeries aircraft is designed for the growing 100-to-149 seat market, and is powered by Pratt & Whitney PurePower PW1500G engines, offering a 15 per cent cash operating cost advantage, and a 20 per cent fuel burn advantage, Bombardier said.
The aircraft, which ensures reduced noise and emissions, will weigh 12, 000 lbs (5,443 kg), lighter than aircrafts of the same seat category, it noted.
"As we look to replace the older aircraft in our fleet, matching the requirements of our business plan, we reviewed the narrowbody platforms from the major airframers and determined that the all-new CS300 aircraft was the best fit," said airBaltic’s CEO, Martin Gauss.
"With its advanced technologies, it is optimized for our market sizes and will be an excellent companion to the eight Bombardier Q400 NextGen turboprops in our fleet."
airBaltic said that the economics of the aircraft and the delivery timeframe played a key role in its decision process.
"The diversity of the CSeries aircraft customers - from national carriers such as airBaltic, major network carriers, low-fare airlines, premium airlines serving city centre airports, and leasing companies - speaks volumes about the flexibility of the aircraft to serve diverse air transport needs worldwide," concluded Bombardier's Arcamone.
Bombardier also announced a conditional order today for five CS100 and 10 CS300 jetliners placed by an unidentified customer earlier in the week during the Farnborough Airshow.
The company said it booked orders and commitments for a total of 352 CSeries aircrafts, including firm orders from Braathens Aviation, Deutsche Lufthansa, Korean Air, Lease Corp International Group, PrivatAir, Republic Airways, an unidentified major network carrier, an unidentified European customer, and "a final well-established and unidentified airline".
airBaltic currently serves 60 destinations with direct flights from Riga, Latvia, the company’s headquarters. Its network spans Europe, Scandinavia, Russia, CIS and the Middle East.
Montreal-based Bombardier is the only manufacturer of both planes and trains across the globe. It posted revenues of $18.3 billion in fiscal 2011.
Shares of Bombardier closed Monday at $4.03.
