Eurolot to buy up to 20 Bombardier Q400 planes
TORONTO (Reuters) - Bombardier Inc (BBDb.TO: Quote) said on Friday it has signed an order to sell as many as 20 of its Q400 NextGen regional airliners to Polish carrier Eurolot S.A.
Bombardier's regional airliner unit has struggled with sluggish demand over the past year, and the Eurolot deal adds to company optimism that demand is picking up.
The deal consists of a firm order for eight planes, which is worth $246 million based on list prices. That would increase to $625 million if options for another 12 planes are exercised, Montreal-based Bombardier said.
Warsaw-based Eurolot, which operates a fleet of 14 aircraft, has a fleet renewal and route expansion program underway.
Bombardier said earlier this month that after a difficult year it now has a healthy pipeline of potential orders for its turboprop and regional planes. That could include the supply of up to 40 turboprops to WestJet Airline (WJA.TO: Quote) for a regional carrier it plans to launch by the end of 2013.
Bombardier said it has booked firm orders for 428 Q400 and Q400 NextGen planes, with 389 delivered as of the end of 2011.
Shares on Bombardier were up 2 Canadian cents at C$4.13 on the Toronto Stock Exchange on Friday afternoon.
(Reporting By Susan Taylor Editing by Peter Galloway)
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