Egypt's national carrier handed ailing Bombardier a major lifeline at the Dubai Airshow today by agreeing to purchase up to 24 of its struggling C-Series aircraft.
The letter of intent includes includes 12 CS300 aircraft with purchase rights for an additional 12 aircraft.
Based on the list price of the CS300 airliner, a firm-order contract would be valued at approximately $1.1 billion US. Should EgyptAir also exercise the 12 purchase rights for CS300 aircraft, the contract value would increase to nearly $2.2 billion US.
Egypt Air had teased the idea of an upcoming major order last month, with reports suggesting the airline planned to make an announcement of over 40 aircraft.
"Egypt is the gateway to the Middle East," said EgyptAir CEO Captain Safwat al Musallam at the press conference, adding that the order could lead to a major market breathrough for Bombardier in the region.
Bombardier had been struggling to market its C-Series aircraft, finally agreeing to sell rights to half of the programme to Airbus last month. The deal allows Bombarder to tap into Airbus' vast sales and marketing machinery.
This is the second major announcement of a C-Series order since the deal with Airbus.
The Canadian company ended an 18 month order drought earlier this month with a deal for 31 C Series jets, extendable to 61 , for an undisclosed European carrier.