Bombardier negotiating $3.4B sale of Q400 planes to Russia
Deal is with state corporation Rostekhnologii and is to be finalized in 2014
Bombardier has signed a preliminary agreement with a Russian state corporation for the purchase of as many as 100 Q400 NextGen aircraft in a deal that could be worth up to $3.39 billion US.
The Montreal-based plane and train manufacturer says the deal with Rostekhnologii, a state corporation controlled by the Russian Federation, also includes the possibility of setting up a Q400 NextGen final assembly line in Russia to complement its Toronto operations.
It says the manufacturing facility in the Russian Federation is a key commercial requirement for the deal, and would be managed by a joint venture between the two parties. The line would produce aircraft for Russian customers
The sales agreement is expected to be finalized in 2014.
It includes 50 Q400 NextGen aircraft to be sold to Russian operators and the potential placement of at least another 50 in the region.
There are currently more than 120 Bombardier commercial aircraft in service in Russia and the Commonwealth of Independent States.