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Bombardier Inc. (BBD.B-T) has reached a deal with the first Middle Eastern airline to buy its new C Series airplanes.
Atlasjet Havacilik AS of Turkey signed a letter of intent to buy 10 of the larger CS300 version of the plane and taken options on another five planes.
A deal for the 10 planes would be worth $776 million US, based on list prices, but the order would grow to $1.18 billion if the options were exercised.
The letter of intent was announced at the Dubai Air Show. The C Series is Bombardier's $3.4-billon CDN program to enter the 100 to 150-seat segment of the narrow-bodied commercial airplane market. The narrow-bodied market, which is the biggest segment of the commercial airplane market, is dominated by Airbus and Boeing Co.
"We consider airlines operating in Turkey and the Middle East to be prime candidates for C Series aircraft," Guy Hachey, president of Bombardier Aerospace said in a statement.
Bombardier has 133 firm orders for C Series planes, options on another 119 and purchase rights for sales of 10 more to unidentified airlines.
The deal announced Tuesday means Bombardier has now received letters of intent from two customers that plan to buy 40 planes.