Bombardier lands billion-dollar deal

Feb. 22, 2013

It was a case of 'from Russia with love' for Shorts Bombardier yesterday. It came as a Moscow-based client placed an order potentially worth $3.4 billion (£2.2bn) for planes on which the wings are designed and built in Belfast.

Leasing company Ilyushin Finance Co (IFC) signed a purchase agreement to acquire 32 of the CS300 aircraft, with options for an additional 10 CS300 planes.

The agreed order is worth $2.56bn (£1.65bn), and would rise to $3.42bn if IFC exercises its options for the additional aircraft.

It is the latest in a long list of lucrative orders won by the Canadian-owned plane-maker in recent months, and which will have a positive spin-off for Belfast, safeguarding hundreds of jobs.

Just before Christmas an unnamed customer in America placed a firm order for 12 CS100 airliners, with options on an additional 18, potentially worth more than $2bn (£1.25bn).

And Latvian-based airBaltic - which boasts an all-Bombardier fleet - wants 10 of the CS300 airliners straight away but indicated that it may take another 10 going forward, potentially worth $1.57bn (£960 million).

That followed Bombardier securing the biggest business jet order in its history in November, potentially worth nearly £5bn, when Swiss-owned luxury jet charter firm VistaJet signed a deal for up to 142 of its Global business jets.

"This is a landmark opportunity for Bombardier Aerospace and its CSeries aircraft," Mike Arcamone, president of Bombardier Commercial Aircraft, said.

"The CSeries aircraft was tailor-made for operation in this vast region and has the potential to offer a step-change in air travel in Russia and throughout the Commonwealth of Independent States."

As of December, Bombardier had booked orders and commitments for 382 CSeries aircraft that include firm orders for 148.

The CSeries wings made in Belfast are the largest and most complex composite structures ever manufactured and assembled in the UK, using Bombardier's unique resin transfer infusion (RTI) technology.

Meanwhile, Bombardier Inc yesterday also reported its financial results for 2012, when revenues totalled $16.8bn (£10.8bn), compared to $18.3bn (£11.8bn) for the previous year.

President Pierre Beaudoin said: "The figures are not reflective of our potential, because after proving our resilience throughout the economic crisis today Bombardier is at a turning point.

"With our outstanding backlog (order book) of $66.6bn (£42.8bn), an increase of 19 per cent over 2011, we're forging ahead with breakthrough products and expanding our reach in pivotal growth markets."

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