Bombardier Reports that American Eagle Will Buy 22 Jets Valued at $779 million

Bombardier Inc. said Thursday that the parent of regional airline American Eagle ordered 22 Regional Jets with a value of $779 million.


Eagle

Eagle, a subsidiary of American Airlines, previously reported it held options on the planes but now has converted them to firm orders, said Bombardier said, which is based in Canada.

In a regulatory filing with the Securities and Exchange Commission, Eagle parent AMR Corp. said it reached an agreement with Canada’s export agency and another party, which it did not name, to provide financing for the full cost of the order. AMR said Eagle expects to receive two planes per month beginning next June and running through April 2011. Eagle has 270 planes, mostly Brazilian-made Embraers, according to its Web site.

The sale to Eagle covers CRJ700 regional jets. The CRJ700 is a stretched 70-seat derivative of the CRJ200, equipped with GE Aircraft Engines. Maximum speed is Mach 0.85 at a maximum altitude of 41,000 feet. Depending upon payload, the CRJ700 can travel up to 2250 statute miles with current engines, and a new variant with CF34-8C5 engines will be able to travel up to 2895 miles.

Bombardier announced the order as it released financial results for the quarter ended Oct. 31. It said the order was placed after the quarter ended.