Bombardier Commercial Aircraft (TSE: BBD) has finalized a firm purchase agreement with Philippine Airlines, Inc., consistent with the letter of intent to purchase Q400 aircraft announced on October 14, 2016, the company said.
The purchase agreement includes a firm order for five Q400 aircraft and purchase rights for an additional seven Q400 aircraft.
Based on the list price of the Q400 aircraft, the firm order is valued at approximately USD165 million and could increase to USD401 million, should Philippine Airlines exercise all its purchase rights.
The five firm-ordered Q400 aircraft are expected to be delivered throughout 2017.
Philippine Airlines (PAL) operates out of its hubs at Ninoy Aquino International Airport of Manila and Mactan-Cebu International Airport of Cebu. Philippine Airlines serves 30 destinations in the Philippines and over 43 destinations in Southeast Asia, East Asia, Middle East, Oceania, North America and Europe.
Bombardier is a manufacturer of both planes and trains. Bombardier is headquartered in MontrÃ©al, Canada. In the fiscal year ended December 31, 2015, the company posted revenues of USD18.2 billion.