Bombardier Says Malaysia Startup Flymojo to Buy CSeries JetsFrederic Tomesco
Bombardier Inc.’s CSeries jet, running at least two years behind schedule, won its first conditional customer in Southeast Asia with an agreement from a Malaysian startup carrier to buy at least 20 of the planes.
Flymojo’s letter of intent for the CS100 model, the smaller of two versions, comes with options for 20 more, Montreal-based Bombardier said Tuesday in a statement without specifying when the deal would be confirmed. A firm order would be valued at about $1.47 billion before the industry’s usual discounts.
“While this is not the large order from a recognizable brand-name airline that the market would like to see, we believe that the letter of intent will ultimately be firmed up,” Cameron Doerksen, an analyst at National Bank Financial in Montreal, said in a note to clients. Flymojo’s commitment is “notable because it will be the first CSeries customer in Southeast Asia, a key aviation growth market.”
Bombardier is working to complete CSeries flight tests this year, with its 243 firm orders still short of a target of 300 by the time the planemaker’s largest-ever jetliner enters service. Bombardier now envisions a late-2015 commercial debut for a plane that was once supposed to be in use with airlines by 2013.
Bombardier’s widely traded Class B stock fell 0.4 percent to C$2.48 at the close in Toronto, dragging the shares to a 40 percent drop to start the year.
The CSeries family will have two variants: The CS100, with a cabin that can seat 108 to 125 people, and the CS300, with capacity for as many as 160 passengers.