November 20, 2008 / 4:50 PM / 10 years ago

UPDATE 1-Bombardier signs $242 mln airliner deal

(In U.S. dollars unless noted)

TORONTO, Nov 20 (Reuters) - Bombardier Inc (BBDb.TO) said on Thursday it had signed a contract with Ethiopian Airlines for eight turboprop aircraft worth about $242 million.

The Montreal-based plane and train maker said the deal is for eight Q400 NextGen airliners with options for four more.

If the options are exercised, the value of the deal could rise to about $366 million, Bombardier said.

The orders come just days after Alaska Air (ALK.N) said it was in talks with Bombardier about deferring Q400 deliveries to its Horizon Air unit.

Alaska Air said Bombardier had already proposed a deferment schedule that would include the delivery of one aircraft by the end of this year, five next year, five in 2010, and three more at a later date.

Shares of Bombardier were down 7.85 percent at C$3.64 on the Toronto Stock Exchange. ($1=$1.28 Canadian) (Reporting by John McCrank; editing by Rob Wilson)

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