Feb. 09--German newspaper Hadelsblatt reported this week that Bombardier is close to sealing a substantial agreement with state-owned Commercial Aircraft Corp. of China (Comac).

The agreement involves Comac's C-919 jet and Bombardier's CSeries passenger plane. Bombardier spokeswoman Haley Dunne said the company signed a "framework" agreement with Comac last March to collaborate on the two programs.

That initial agreement formed the beginning of other potential agreements. Bombardier and Comac are looking at areas they can work together, such as the supply chain, marketing, customer support and services on the two programs.

The two airplanes have some commonalities, Dunne said. But they don't compete with one another. The C919 is the next larger aircraft up from Bombardier's CSeries jets.

Stonecap Securities analyst Scott Rattee told Reuters that if Bombardier could have access to the Chinese market through a joint venture, it would give the CSeries program a big boost.

"It's a huge single client," Rattee said.

Bombardier's Dunne said there is no timeline for additional agreements.

"We're obviously in discussion with them," Dunne said. "There's a delegation in China right now."

The company won't firm up the agreements until they're right for both companies, she said.

"It could be in the next few weeks; it could be in the next few months," Dunne said. "I don't really have a timeline on it."

What won't be part of an agreement is a sale of some or all of Bombardier's commercial aircraft division to Comac, she said.

Hadelsblatt's news report said there had been discussions about Comac taking a stake in Bombardier's commercial aviation business unit. Dunne denied that report, saying there was a miscommunication.

"We have no intention of selling our commercial business unit," Dunne said.

Reach Molly McMillin at 316-269-6708 or [email protected].

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