BUSINESS

Bombardier secures orders for up to eight Q400s, but no CSeries, at Dubai show

11/18/2013 11:12 EST | Updated 01/25/2014 04:01 EST
Bombardier has secured orders and interest from two companies at the Dubai air show for its Q400 turboprop that could potentially be worth up to US$423 million, but the company has yet to announce any orders for its new CSeries aircraft at the event.

The national airline of Ivory Coast placed an order for two Q400 NextGen aircraft with an option for two more on the second day of the Middle Eastern showcase.

Bombardier said the firm order from Abidjan-based Air Cote d'Ivoire is worth about US$69 million based on list prices, and US$141 million if the options are converted. Customers typically receive discounts off list prices.

The order could potentially double the size of Air Cote d'Ivoire's fleet as it develops a network of short- and medium-haul destinations.

Bombardier (TSX:BBD.B) also announced Monday that leasing company Palma Holding Ltd. had signed a letter of intent to purchase up to eight Q400s, including four firms orders for planes that would be leased to Ethiopian Airlines.

Palma would also have four options. The eight planes are valued at about US$282 million.

Mike Arcamone, president of Bombardier commercial aircraft, said customers in the Middle East and Africa have been successful with the Q400 because of the aircraft's "unique ability to serve the diverse and challenging environment in the region."

Ethiopian Airlines currently operates a fleet that includes 13 Q400 NextGen airliners.

Bombardier also announced that Ethiopian Airlines will operate an authorized maintenance facility for commercial aircraft, joining a network of more than 60 facilities authorized to work on Bombardier commercial and business aircraft.

Meanwhile, Boeing (NYSE:BA) said it has selected Bombardier's Challenger 605 business jet for its Maritime Surveillance Aircraft (MSA) program. The plane will be modified for missions such as anti-piracy, coastal and border security and long-range search and rescue."

Boeing is currently modifying one of its Challenger 604 jet into a demonstration aircraft that will be presented to potential customers in 2014.

On the Toronto Stock Exchange, Bombardier's shares closed up one cent at $4.65 in Monday trading.