Bombardier has secured two separate orders for regional jets worth up to $3.6 billion, giving the company a much-need boost, plus an edge over rival Embraer.
Delta will purchase 40 CRJ900 jets, with an option for additional 30 planes, an order valued at up to $3.29 billion. An undisclosed Chinese customer also ordered seven planes in a deal worth $330 million.
“We’re very excited to continue our partnership with Delta,” says Mike Arcamone, president, Bombardier Commericial Aircrafts, according to Canadian publication The Star. “It’s a large order.”
According to Reuters, the Delta deal, along with the Chinese order, are more than just “large orders,” it gives Bombardier momentum for competing with Embraer.
After Bombardier beat out Brazil-based airplane maker on the deal, its shares rose 1.8%, while Embraer’s feel as much as 7%. It also means that Embraer probably will not produce as many airples next year.
“Bombardier has delivered about half as many regional jets as Embraer in recent years and missed out on several major orders, especially in China,” Reuters reports.
This year, Bombardier has deals to supply more than 90 regional jets, compared to a net 12 new orders from Embraer.