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JetBlue and new low-cost U.S. airline order 120 planes made by Bombardier

FILE -- An Airbus A220 lands at Toulouse-Blagnac airport, southwestern France, Tuesday, July 10, 2018. THE CANADIAN PRESS/AP, Frederic Scheiber

JetBlue Airways and a new U.S. low-cost airline being launched by the co-founder of WestJet Airlines and JetBlue have signed firm orders to buy 120 A220 planes developed by Quebec-based Bombardier Inc.

The manufacturer says the airline dubbed Moxy is buying 60 A220-300 aircraft formerly called the C Series in a deal valued at a total of about US$5.5 billion based on 2018 list prices, although buyers typically receive large discounts.

Aviation veteran David Neeleman unveiled his plans for Moxy at the Farnborough Air Show last July.

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He says the plane is the right one for the new airline because its low operating costs and spacious cabin allow it to offer lower fares and operate profitably in under-served markets.

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Separately, Airbus announced that JetBlue firmed up its order for 60 of the planes to join its current fleet of A320 aircraft.

WATCH: Bombardier cuts 5,000 jobs in November 2018

Click to play video: 'Bombardier cuts 5,000 jobs'
Bombardier cuts 5,000 jobs

Airbus will produce the planes at a new U.S. assembly plant adjacent to its A320 assembly facility in Mobile, Ala. Construction begins later in the month with the first deliveries to various airlines starting in mid-2020.

There have been more than 500 orders for the two versions of the A220.

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