EgyptAir, Bombardier sign letter of intent for USD 1.1 bn aircraft purchase: EgyptAir Holding Company signed yesterday a letter of intent with Canada’s Bombardier to purchase up to 24 C-Series planes for USD 1.1 bn, the Canadian company said in a statement. The agreement will see Egypt’s national flagship carrier purchase at least 12 CS300 airliners, with an option to purchase another 12 planes, which would bring the total value of the agreement to USD 2.2 bn. “We undertook a thorough evaluation process of our fleet and realized that the CS300 would fit perfectly into our business plans and growth strategy,” EgyptAir Holding Company Chairman and CEO Safwat Musallam said at the signing ceremony. As we anticipated yesterday, the two companies signed the agreement at the Dubai Air Show.

The agreement is “a significant win for Bombardier” that comes less than one month after Europe’s Airbus took control of the C Series “in exchange for the European planemaker’s marketing heft, manufacturing expertise and financial muscle,” Bloomberg says. Bombardier’s decision to sell a majority stake in the business came after the US Commerce Department “imposed harsh duties on Bombardier, charging the Canadian company of selling the C Series planes in America below cost and receiving government subsidies,” the Associated Press notes. However, Musallam maintained that Airbus’ acquisition of the line “had not been the incentive for his airline to buy the aircraft,” according to the Financial Times.