WRAPUP 1-Bombardier wins Air Canada order for CSeries jets; shares surge

Wed Feb 17, 2016 12:20pm EST
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* To slash workforce by about 7,000 over next two years

* Forecasts 2016 revenue below analysts' estimates

* Proposes reverse stock split

* Quebec government drops lawsuit against Air Canada (Adds details on order, share price move, analyst, CEO comment)

By Allison Lampert

MONTREAL, Feb 17 (Reuters) - Bombardier Inc said it received the first order in 16 months for its CSeries aircraft, sending its shares up as much as 30 percent and overshadowing news of the planemaker's lower-than-expected quarterly results and plan to cut 7,000 jobs.

The company said on Wednesday that it signed a letter of intent to sell Air Canada 45 CSeries jets, with an option for 30 more. The order, worth as much as $3.8 billion based on the list price, is the first for the CSeries since September 2014.

The Quebec government, which gave Bombardier a $1 billion lifeline last year, said it would drop a lawsuit against Air Canada. In return, the airline agreed to conduct maintenance on CSeries jets in the province.

The Canadian government said it was still in talks with Bombardier on its request for federal aid. The country's transport minister said Ottawa had put no pressure on Air Canada to buy jets from the planemaker.   Continued...