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Bombardier to make $3.39 billion deal with Russia

Bombardier to make $3.39 billion deal with Russia - image

MONTREAL – Bombardier has signed a preliminary agreement with a Russian state corporation for the purchase of as many as 100 Q400 NextGen aircraft in a deal that could be worth up to US$3.39 billion.

The Montreal-based plane and train manufacturer says the deal with Rostekhnologii, a state corporation controlled by the Russian Federation, also includes the possibility of setting up a Q400 NextGen final assembly line in Russia to compliment its Toronto operations.

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The main focus of the deal is the opening of an assembly line in the Russia Federation that will produce aircraft for Russian customers.

It would be managed as a joint venture by both parties.

There are currently more than 120 Bombardier commercial aircraft in service in Russia.

The sales agreement is expected to be finalized in 2014.

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