Plane-maker also announced $126-million Q400 turboprop order for unnamed European airliner
August 18, 2011
by The Canadian Press
MONTREAL—Bombardier Aerospace has signed a letter of intent to build up to 30 CSeries jetliners for Illyushin Finance Co., one of Russia’s largest aircraft leasing companies.
Montreal-based Bombardier made the announcement alongside the Russian company at Moscow’s air show.
While financial details were not disclosed, a Bombardier representative says the value will be revealed once a definitive agreement is signed. Based on the listing price for the planes, it would be valued at US$627 million for the initial order of 10 planes.
Bombardier commercial aircraft division spokesman John Arnone says the agreement marks the first between the airplane manufacturer and a Russian company for the CSeries aircraft.
The letter of intent includes a 10 firm orders, 10 options and another 10 purchase rights for the jetliners. Delivery is expected to begin in mid-2015 to the end of 2016, if all of the order options are taken.
Analysts also appeared to take the latest announcement as a positive development for Bombardier’s overall CSeries program because Russian airlines have typically strayed from foreign built planes.
Earlier in the week, Bombardier announced a separate $126 million order for four Q400 turboprop airliners from an unnamed European airline.