Bombardier, Canada's top player in aerospace industry, announced two major aircrafts orders at the Paris Air Show Tuesday for its new aircraft programs, the new CSeries and Global business aircraft.
Korean Air announced Tuesday, it has signed a letter of intent with Canada's Bombardier to acquire 10 CSeries aircraft, with an additional option of the larger model CS300 and acquired 10 purchase rights on CS300 airliners. The value of the deal which still needs to be finalized is valued at roughly $2 billion U.S. if all 30 aircraft are sold.
Korean Air will become the first Asian customer for Bombardier's new CSeries program, after signing a letter of intent to purchase 10 of the new 110-to-149 seater aircraft.
On Monday, Bombadier banked an order for 10 of the smaller version, CS100s, from an unidentified major network carrier which will serve of the aircrafts first operator, taking delivery of the plane in late 2013.
The orders for Bombardier Inc.'s new CSeries aircraft keep rolling in, which has generally struggled to gain momentum, but has picked up boosting orders at the Paris Air Show. It is the fourth order this month for the CSeries, including the second at Paris, after a 15 month dry spell.
Our list of customers continues to grow and now covers the Asian, European and North American markets, a testament to the high value and operating flexibility of the CSeries aircraft program, said Gary Scott, Bombardier Commercial Aircraft president, in a statement.
Rumours have been circulating that Qatar Airways is also expected to place orders at the air show this week, marking a potentially marquee customer.
But Steve Hansen, Raymond James analyst, said even without the Qatar order, the Paris Air Show has been a net positive.
Meanwhile, Bombardier Aerospace announced a $650-million order for 10 Global 8000 long-range business jets to the Swiss luxury carrier VistaJet at the Paris Air Show Tuesday.
Bombardier also booked an order for four of its Global 7000 and two of its 8000 executive jets from AVWest of Australia in a deal valued at US$400-milliion.
Guy Hachet, Bombardier Aerospace presidentsaid that he would like 20 to 30 customers by the time the first CSeries hit the market in late 2013.
The company has sold more than 80 aircraft over the past six years to VistaJet, a privately owned firm calling it the booming BRINC countries - Brazil, Russia, India, Nigeria and China.
They would like to continue to book a series of smaller orders to alleviate pressure on delivery times in the early part of the program.
Bombardier currently has six customers for the aircraft with 113 CSeries excluding the deal with Korean Air, include Indianapolis-based Republic Airways Holdings Inc. and Germany's Deutsche Lufthansa.