Economy

EgyptAir To Buy 12 Bombardier Aircraft For $1.1 Billion

EgyptAir To Buy 12 Bombardier Aircraft For $1.1 Billion

Last month, Airbus agreed to take a majority stake in the C-Series project.

An order worth $1.1 billion for 12 Bombardier C-Series aircraft from Egypt's national airline is a welcome confidence boost for Bombardier's workforce in Northern Ireland, but the Canadian aerospace group needs to keeping winning major deals to keep production lines busy in the North, a union leader has warned.

Egyptair CEO Safwat Musallam said during a press conference at the Dubai Airshow that the order is part of the airline's fleet modernisation strategy. Cromer said both sales had already being under negotiation and were not the result of the Airbus venture.

EgyptAir has signed a a letter of intent for up to 24 CS300 aircraft which includes12 CS300 aircraft with purchase rights for an additional 12 aircraft.

Earlier this month an unnamed European airline said it meant to buy at least 31 of the C-Series planes.

More news: HTC Vive Focus is a standalone VR headset with 'world-scale' tracking
More news: Iran's Rouhani inspects quake damages, pledges compensation to losses
More news: Gal Gadot Won't Return Unless Studio Buys Out Producer Brett Ratner

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

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

A firm-order contract would be valued at around $1.1 billion and is EgyptAir buys all 24 planes the contract value would increase to almost $2.2 billion.

The US trade department imposed tariffs of 300% on the C Series as it upheld a complaint from Boeing over subsidies the aircraft received from the Canadian and United Kingdom governments.