EgyptAir in deal to buy 24 Bombardier C-Series planes

The Bombardier logo is seen at the Bombardier factory in Belfast Northern Ireland

State-owned EgyptAir signed a letter (LOI) of intent on Tuesday to order 12 Bombardier CSeries jets valued at $1.1 billion at list prices. The aircraft are to be powered by Pratt & Whitney Geared Turbofans (GTF).

The agreement will see EgyptAir buy at least 12 of the CS300 passenger jets, with options to buy a further 12.

Bombardier has revealed that EgyptAir is planning to acquire up to 24 C-Series aeroplanes.

It represents another shot in the arm for Bombardier, which last month signed an agreement with Airbus to take a majority stake in its aircraft programme as it faced the prospect of punishing U.S. tariffs.

No Middle East customer has said when it would take delivery of CSeries jets. In October, it said it would impose an 80 percent duty on top of duties of almost 220 percent on the aircraft, a benefit for rival Boeing.

Bombardier CEO Alain Bellemare told analysts two weeks ago that he expected sales of the C Series would accelerate following the deal with Airbus. That's a distinct turnaround, as prior to the deal Bombardier hadn't sealed a major purchase since Delta Air Lines Inc. ordered 75 planes in April 2016. The C Series was two-and-a-half years late and more than $2bn over budget when it entered service at Deutsche Lufthansa's Swiss International unit in July 2016.

The shopping spree, following months of negotiations, marks an expansion push for Egypt's flag carrier after it weathered slumping tourist visits and a fatal crash past year.

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