Bombardier inks deal with Chinese aircraft company

Manila Bulletin
March 27, 2011, 1:12pm

MONTREAL (AP) – Bombardier said it is partnering with China's leading aircraft manufacturer to cross-market its new CSeries jet and other aircraft.

Bombardier, the world's third-largest maker of commercial aircraft, and Commercial Aircraft Corporation of China Ltd., or COMAC, have signed a framework agreement to explore working together in marketing and customer service in an effort to help each other increase market share in both emerging and established markets.

Bombardier's vice president commercial aircraft, Benjamin Boehm, said the agreement takes away the sales advantage that its bigger rivals have had.

"A large airline that has a fleet of CSeries would see some benefit in buying a COMAC airplane over a Boeing or an Airbus airplane and vice versa,'' he said.

On the Toronto Stock Exchange, Bombardier shares were trading at CA$6.57 hours after the Montreal-based company announced the deal.

Along with cooperation on Bombardier's CSeries planes, the Canadian company and China's main civil aerospace firm said they will look at collaborating on COMAC's C919 model and future products.

The CSeries will have two models ranging between 110 and 149 seats, beginning the end of 2013. The Chinese plane will have 168 to 190 seats when it enters into service in 2016.

Funding from each company will be determined as projects are devel¬oped.

The deal will strengthen Bombardier's customer relationships in China, which will improve its chances of win-ning sales in the world's most populous country, Boehm said.