The deal includes 12 firm-order aircraft with purchase rights for 12 more, worth a total of $2.2 billion
By Akram Medhat
EgyptAir Holding Company announced its first cooperation with Bombardier Commercial Aircraft through the signing of a letter of intent, under which EgyptAir will acquire 12 CS300 aircraft to join the company's fleet, to be delivered according to a timetable from 2018 to 2020, in addition to the right to purchase 12 additional aircraft between 2020 and 2026.
The aircraft are scheduled to operate on the route network of EgyptAir Express, the airline for domestic and regional routes and one of the subsidiaries of EgyptAir Holding Company.
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Based on list prices, the value of the firm order for 12 CS300 aircraft amounts to about $1.1 billion, and if the order for the other 12 aircraft is confirmed, the value of the contract will reach $2.2 billion.
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The announcement came during a press conference held today in the presence of Egyptian Minister of Civil Aviation Sherif Fathy, at which Safwat Musallam, chairman of EgyptAir Holding Company, and Fred Cromer, president of Bombardier, signed the letter of intent, thereby announcing the first cooperation between the two companies.
For his part, Musallam expressed his happiness with this new partnership with Bombardier, which comes as the national carrier completes its plan to modernize its fleet with the latest and most varied aircraft models, stressing that EgyptAir is proceeding with the implementation of its strategy to modernize and increase the capabilities of its fleet, and that this new cooperation with Canada's Bombardier is an important step in the company's implementation of this plan. He also praised the new partnership between Bombardier and Airbus, which will add to and support the systems of the CSeries family.
He added that the choice of the CSeries 300 aircraft was based on an intensive study of the company's fleet and its needs, in line with operating rates and the route network, compared with the offers submitted by the world's largest aircraft manufacturers, as this model suits EgyptAir's operations to some domestic points, as well as regional ones in the Arab region and the Middle East, and some European cities and capitals.
He continued that with the completion of this deal, EgyptAir will be able to provide more distinguished services to its customers on board this modern model, which seats 126 passengers: 16 seats in business class and 110 in economy class.
For his part, Cromer said: "We are pleased that EgyptAir has chosen our CSeries 300 aircraft to join its modern fleet. According to our vision of the future requirements of the air transport market in the Middle East over the next 20 years, demand may reach about 450 aircraft of models with capacities ranging from 60 to 150 seats."
He added that he is certain that the CSeries 300 aircraft will meet the requirements of this market in terms of withstanding the hot climate that prevails in this region, as well as outstanding performance by achieving the highest profitability rates, thanks to its low operating costs, in addition to its spacious single-aisle cabin.
In the same context, Jean-Paul Boutibou, vice president of sales for the Middle East and Africa at Bombardier Commercial Aircraft, said: "Our customer list for this C Series model is growing steadily, which demonstrates its high value and operational flexibility in meeting the requirements of many airlines to expand in important markets around the world."
It is worth noting that Bombardier is the world's leading manufacturer of planes and trains, developing transport around the world by meeting the need for more efficient and sustainable mobility. It is headquartered in Montreal, Canada, its shares are traded on the Toronto Stock Exchange under the symbol (BBD), and the company's shares are listed in the Dow Jones Sustainability World Index. In the fiscal year ended December 31, 2016, it posted revenues of $16.3 billion.
