American Airlines near deal for Bombardier’s neglected small jets: sources - about 15 Aircraft
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FREDERIC TOMESCO AND MARY SCHLANGENSTEIN - BLOOMBERG NEWSPUBLISHED 43 MINUTES AGO
American Airlines Group Inc. is nearing an order for about 15 regional jets from Bombardier Inc. with options to buy more, people familiar with the matter said.
A deal for the CRJ900 aircraft is likely to be announced as soon as Thursday, when Bombardier reports first-quarter results, said one of the people, who asked not be named because the discussions are private. The sale would have a list value of about $700 million before customary discounts for aircraft purchases.
An order from the world's largest carrier would give a boost to the venerable CRJ program, which Bombardier has acknowledged neglecting as the company invested $6 billion in developing its all-new C Series single-aisle jetliner. As Bombardier worked on the C Series, its regional jets lost ground to Embraer SA, which is equipping its latest planes with upgraded engines.
There's no guarantee the deal will be finalized, one of the people said. American and Bombardier declined to comment.
American, which already flies aircraft from both Bombardier and Embraer, has been shifting to bigger regional jets with two passenger classes to better match the on-board offerings of its larger single-aisle planes. American has also reduced the number of 50-seat aircraft it flies.