CS300s For EgyptAir Silver Lining For Bombardier
Two weeks after the Commerce Department finalized import duties of 292% on Bombardier’s Canadian-made C Series jets sold in the United States, EgyptAir announced firm orders for 12 of the larger CS300 single-aisle jets. “Welcoming EgyptAir to the family of C Series operators is another landmark moment for Bombardier,” said Fred Cromer, president of Bombardier Commercial Aircraft. “The aircraft is performing exceptionally well, the industry recognizes the C Series as best in class, and this order from another well-established airline is testament to its tremendous value.” Market price for the 12 airplanes would be $1.1B, but EgyptAir may be receiving discounts for being an early purchaser. Bombardier also celebrated delivery of the first of ten CS300s to Korean Air last week.
The import duties assessed on C Series jets sold in the United States, which was initially seen as a potential body blow to the struggling project, seem likely to come to naught. Bombardier’s partnership with Airbus will allow the pair to make the 75 CS100s already sold to Delta at an Airbus facility in Alabama. “This facility will provide U.S. airlines with a U.S.-built plane thereby eliminating any possibility of harm due to imports,” says Mike Nadolski, Bombardier’s VP for Communications and Public Affairs. The Wall Street Journal reports that Delta is willing to wait up to two years for the jets, which were supposed to begin arriving in the spring, if it means avoiding the import duties. Bloomberg News is reporting that Aeromexico, which is 49% owned by Delta, may purchase the Canadian-made CS100s originally destined for Delta.