Business

Bombardier secures €719m sale of jets to American Airlines

Bombardier has struck a $719 million (£529m) deal to sell up to 30 of its C-Series passenger jets to American Airlines.
Gareth McKeown

AIRCRAFT manufacturer Bombardier has struck a new $719 million (£529m) deal to sell up to 30 of its CRJ regional jets to American Airlines.

The Canadian firm announced yesterday it has reached agreement for the sale of 15 new CRJ900 regional jets, with the option of a further 15 in the future. Based on the list price of the aircraft, the firm order is valued at approximately $719 million. The airline intends to take delivery of their first aircraft in the middle of next year.

The main body, engine casing and wing components of the aircraft are made in Belfast

The major deal comes just months after the US International Trade Commission (ITC) ruled in favour of Bombardier in its dispute with Boeing, safeguarding thousands of jobs in Northern Ireland. Bombardier had previously faced the prospect of having US trade tariffs of 292 per cent placed on its C Series jets, directly threatening the future of 1,000 staff in Belfast who help build the aircraft's wings.

President of Bombardier Commercial Aircraft, Fred Cromer said:

“We are pleased with American’s continued confidence in Bombardier and the CRJ900 aircraft. This order is a testament to the tremendous value that the CRJ Series provides to airlines in the North American regional market."

News of the deal was revealed as Bombardier announced strong growth in its latest quarterly financial results.

The Canadian manufacturer saw its turnover jump by 12 per cent to $4 bn (£2.9bn), while the company's EBITDA (Earnings before interest, taxes, depreciation, and amortization) rise by 16 per cent in the first three months of the year from $228m (£168m) to $265 (£195m). The strong performance was driven by an increase in orders within its rail division and an improving business aircraft market.

 

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