Saad Al-Khafaji and Michael Arcamone
Bombardier to sell 5 jets to Iraqi Airways
Dubai, November 19, 2013
Bombardier has signed a letter of intent (LOI) to sell five CSeries jetliners to Iraqi Airways, the Canadian plane and train maker said on Tuesday.
The LOI includes options on 11 CS300 aircraft.
Based on CS300 airliner list price, a firm order would be valued at approximately $387 million US and could increase to $1.26 billion US if the 11 options are converted to firm orders. Iraqi Airways operates six CRJ900 NextGen regional jets.
“Over the last few years, Iraqi Airways has successfully utilized its CRJ900 NextGen aircraft to open routes and expand into new markets, and today we are pleased to be taking the next step by expanding and complementing our network operations with the addition of the CS300 aircraft,” said Captain Saad Al-Khafaji, chief executive officer and director general, Iraqi Airways.
“Growing passenger demand in an increasingly competitive Middle East and European airline market has created a need for fuel-efficient, comfortable, technology-advanced aircraft like the CSeries jetliners.”
The LOI was executed at the Dubai Airshow during a visit that included government officials from Iraq, Canada, Northern Ireland and the UK.
“I congratulate Bombardier Aerospace and Iraqi Airways on concluding this ground-breaking CSeries aircraft letter of intent – taking their partnership to a new level,” said Ed Fast, Minister of International Trade, Canada. “This LOI will add another dimension to Canada's participation in Iraq’s reconstruction and will help us continue to grow the Canada-Iraq trade and investment relationship."
“As Bombardier Aerospace Belfast is responsible for the design, development and manufacture of the advanced composite wings for Bombardier’s CSeries aircraft, today's letter of intent with Iraqi Airways is good news for Northern Ireland,” said Arlene Foster, Minister, Enterprise, Trade and Investment, Northern Ireland.
“It is a tremendous endorsement of our technological expertise and I am confident that, as the CSeries aircraft program progresses, it will continue to bring significant economic benefits to Northern Ireland.”
“This marks a proud achievement for those who have been supporting the need for modern, efficient flying in Iraq and the surrounding region,” said Mike Arcamone, president, Bombardier Commercial Aircraft.
“The CSeries aircraft will complement Iraqi Airways’ CRJ900 NextGen aircraft operation as the airline looks to expand into new markets with fuel-efficient, comfortable, single-aisle aircraft that can reach destinations across Europe and Mena.”
Bombardier, Nok Air ink sale deed
Meanwhile, Bombardier Aerospace also received a firm order from that low-cost Thai carrier Nok Air for two Q400 NextGen turboprop airliners.
The airline has also taken options for two additional Q400 NextGen aircraft, as well as purchase rights on four others. Bombardier also confirmed that Nok Air will be the launch customer for a new extra capacity seating option, which will allow the Q400 NextGen aircraft to accommodate up to 86 passengers.
Based on the list price of the Q400 NextGen airliner, the firm order is valued at approximately $63 million. The value could increase to $258 million should Nok Air exercise its options and purchase rights.
“Nok Air strives to offer to all the freedom to fly as a convenient and affordable means of transportation, yet with the fun and friendly Thai hospitality we are known for,” said Patee Sarasin, chief executive officer, Nok Air.
“With an unmatched balance of speed, payload, low maintenance costs and superior comfort, the Q400 NextGen aircraft will allow us to operate more efficiently, as we enhance service on current routes and expand to new destinations. This flexibility will make point-to-point regional air service more accessible to Thai people, in addition to stimulating provincial economic growth.”
“We are delighted that Nok Air will not only be the first to operate the Q400 NextGen aircraft in the Southeast Asia region, but also be the launch customer for our new extra capacity option,” said Arcamone.
“Specifically tailored to airlines looking at further increasing the productivity of their aircraft, the extra capacity seating option enables the Q400 NextGen aircraft to offer increased revenues and flexibility, as well as best-in-class seat mile costs.” - TradeArabia News Service & Reuters
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