(Reuters) - Shares in Bombardier Inc (BBDb.TO) dipped on Wednesday after a competitor won a large regional jet order that some industry watchers had expected the Montreal-based plane-maker to win.
Bombardier shares were down 2 percent on the Toronto Stock Exchange on Wednesday afternoon following news that U.S. regional airline SkyWest Inc (SKYW.O) would buy 100 regional jets from Japan’s Mitsubishi Aircraft Corp, a unit of Mitsubishi Heavy Industries Ltd (7011.T).
SkyWest is the largest operator of Bombardier’s CRJ regional jets and was expected to purchase more, National Bank Financial analyst Cameron Doerksen said in a note to clients.
This is a “competitive loss” as well as a “market share loss with a key customer”, Doerksen said.
He was hopeful that Bombardier could still win an order from SkyWest, possibly for its Q400 turboprops. Bombardier was also well positioned to win regional aircraft orders from several other U.S. airlines, including Delta (DAL.N) and U.S. Airways LCC.N, Doerksen said.
The Mitsubishi order was announced at the Farnborough Air Show this week. Bombardier has announced orders for 25 of its new C-Series single-aisle jets at the show.
Bombardier shares were down 8 Canadian cents at C$3.96 in Toronto. The overall market was flat.
Reporting By Nicole Mordant in Vancouver; Editing by Janet Guttsman