TORONTO Feb 20 Bombardier Inc said on
Wednesday it has inked a deal to sell Russian aircraft leasing
company Ilyushin Finance Co up to 42 of its new C-series
jetliners in a deal that could be worth as much as $3.42
The agreement, which is subject to a vote by Ilyushin
shareholders, expands on a tentative agreement signed in 2011 to
buy at least 10 of the aircraft.
Montreal-based Bombardier's shares rose about 3 percent in
the final 20 minutes of trading after the deal was announced.
The shares finished the session up 4.1 percent at C$4.28 on the
Toronto Stock Exchange.
Ilyushin will buy 32 of Bombardier's 130-seat CS300
jetliners for about $2.56 billion, based on the list price of
the aircraft. It has an option to purchase another 10 jets,
which could bring the total value to about $3.42 billion,
"Ultimately, it's a good deal in that it seems to quite a
bit bigger than was originally envisaged," said David Tyerman,
an analyst at Canaccord Genuity.
He cautioned that large deals with leasing companies tend to
be finalized at lower prices, which can make it harder for
airlines to squeeze margins from them.
Bombardier, the world's No. 3 plane maker and largest
passenger train manufacturer, said in November it was delaying
by six months the inaugural flight of the C-series planes, which
mark an attempt to muscle into the mid-size jet market dominated
by Boeing and Airbus.
The CS300 is not expected to enter service until the end of
As of the end of 2012, Bombardier had booked orders and
commitments for 382 C-series aircraft, it said.
Bombardier will report fourth-quarter results on Thursday,