WRAPUP 5-Jet maker Bombardier used 'aggressive' pricing to win big Delta order

jueves 28 de abril de 2016 18:19 GYT
 

(Adds further pricing estimate, context on Embraer, trade)

By Allison Lampert and Jeffrey Dastin

MONTREAL/ATLANTA, April 28 (Reuters) - Bombardier scored a major order for its new CSeries passenger jets from Delta Air Lines Inc on Thursday, boosting the Canadian manufacturer's stature in the airline industry even as it faces a long road back to profitability.

The order for 75 CS100 jets, worth an estimated $5.6 billion based on the list price, was the biggest yet and the first from a major U.S. airline for the CSeries program, which is years behind schedule and billions of dollars over budget.

Quebec-based Bombardier hopes the deal marks a turning point in its attempt to break into the fleets of top airlines and serve the niche market for 100-seat planes spurned by larger rivals Boeing and Airbus.

It is also locked in competition with Brazil's Embraer , its most direct rival for small jet sales.

Clinching the order does not appear to have come cheap for Bombardier, however, with its chief executive conceding the company had been "aggressive" on pricing in order to win.

Aerospace industry sources involved in negotiating similar deals estimated discounts as high as 75 percent may have been offered to reboot the CSeries program with a big order, matching some of the most aggressive pricing seen lately in the market.

Two sources pegged the discount closer to two-thirds off the nominal list price of $71.8 million.   Continuación...