* Companies to consider joint marketing, sales
* May collaborate on future product lines
* Follows Bombardier's delay of C-Series first flight
TORONTO, Nov 13 Canada's Bombardier Inc
and Commercial Aircraft Corp of China Ltd COMAC) have
strengthened an existing cooperation agreement to include
possible joint sales and marketing on their new C-Series and
C919 planes, the companies said on Tuesday.
Announcing the second phase of a contract that could also
include collaboration on future product lines, the companies
said they hoped for cost benefits for both planes.
Under an agreement first announced in March, the two
companies say they have made efficiency and product development
gains on cockpit-crew interfaces, electrical systems,
development of aluminum-lithium standards and specifications,
and technical publications.
"This relationship should facilitate the sale of the
C-Series aircraft in the Chinese market, which is the
second-largest addressable market for the aircraft after the
U.S.," BMO Capital Markets analyst Fadi Chamoun said of the
latest phase of the pact.
Bombardier said last week that it was delaying the first
flight of its C-Series jetliner by six months. That sparked
concerns about its ability to meet that deadline and attract new
orders for a plane that will compete with aircraft built by
industry giants Airbus and Boeing.
The C-Series will not compete with COMAC's C919s, as
Bombardier's aircraft have 100 to 149 seats and COMAC's planes
have 168 to 190 seats.
Common systems on the two types of plane could give
Bombardier and COMAC an advantage in selling each other's
aircraft to fleet operators, because crews could train on the
same platforms and share technical publications, for example.
"We believe that by joining efforts, Bombardier and COMAC
have more firepower to compete in the narrow body segment in
terms of technology, financial resources, marketing and customer
support capabilities," Chamoun said.
Bombardier shares were down 3 Canadian cents at C$3.34 on
the Toronto Stock Exchange at mid-session on Tuesday. The stock
has dropped nearly 5 percent since Nov 7, when Bombardier
announced the delay to the first flight of the C-Series.