Bombardier lands $3.1B US airliner deal
Last Updated: Thursday, February 25, 2010 | 4:07 PM ET
CBC News
Bombardier Aerospace has a $3.1 billion US deal to sell 40 of its CS300 jet airliners to Republic Airways Holdings, a U.S. operator of 1,600 daily flights under half a dozen different airline names.
There is a firm deal for 40 of the planes, and an option on another 40, Montreal-based Bombardier said in a news release Thursday. If the option is exercised, the deal will be worth $6.3 billion US to Bombardier.
With the Republic order, Bombardier now has 90 firm commitments for the longer-range, economical and low-emission planes.
Bombardier class B shares closed up 39 cents at $5.87 on the Toronto Stock Exchange. The price is a 52-week high.
Deliveries will start in 2015, Republic said. The planes will be configured as a single cabin for 138 passengers.
"The CS300 will help us dramatically reduce our fuel consumption and impact on the environment," Bryan Bedford, chairman, president and CEO of Republic, said in a news release.
Republic, based in Indianapolis, operates 283 planes and owns Chautauqua Airlines, Frontier Airlines, Lynx Aviation, Midwest Airlines, Republic Airlines and Shuttle America.
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