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Aug 28, 2018

Bombardier revises deal to sell regional jets to Chinese leasing company

FILE PHOTO: A Bombardier logo is seen at the Bombardier plant in Belfast

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MONTREAL - Bombardier (BBDb.TO) says a Chinese leasing company has changed its aircraft order for 10 regional jets by swapping half of the CRJ 900s for five 90-seat Q400 turboprops.

Fred Cromer, president of Bombardier's commercial aircraft division, says the deal is part of a fleet expansion plan in Asia.

The Montreal-based transportation giant entered into an agreement in June 2016 with a subsidiary of Chinese financial institution, Industrial Bank Co. Ltd.

The revised order would have a list-price value of US$420 million, although it's typical for purchasers to get discounts based on order size and other factors. The new list price compares to US$472 million in the original 2016 deal.

The Q400 typically flies routes that range between 300 and 800 kilometres, while CRJ 900s cruise on flight paths between 2,500 and 3,000 kilometres, industry experts say.