Bombardier (BBD.B-T) Airbus SE has struck a preliminary deal to build 60 new A220 planes for Air France, a substantial boost for the European player's smallest jet as it expands production in Canada.
Airbus confirmed Tuesday that Air France-KLM Group signed a memorandum of understanding for 60 A220-300 airliners, to be built in Mirabel, Que., and flown by Air France.
Airbus took over the site last year when it won control of Bombardier's money-losing C Series jet family, which it renamed the A220. "It's a big, big positive signal" for the A220 program and could spur orders from other rivals, said Addison Schonland of AirInsight in Windham, N.H. Air France plans to take delivery of the first A220 jet in September, 2021. Not disclosed were financial details.
"The screws are going to be put on the people working at the Canadian factory to hurry up and make them faster," Mr. Schonland said of the A220 jets. "They were very slow under the previous regime." The deal increases the odds that Airbus will move ahead with a plan, still awaiting formal approval, to build a preassembly operation at Mirabel designed to support production of the A220. |
