Bombardier (BBD) in Marketing Deal with China's Comac

Bombardier (TSE:BBD) announced today it is partnering with Chinese aircraft maker Commercial Aircraft Corp. of China Ltd., or Comac, to cross-market their new, separate, single-aisle narrow-body jets in emerging and mature markets.

Bombardier, the No. 3 plane maker behind Boeing Co. (NYSE:BA) and Airbus, plans to debut its 100 seat-149 seat CSeries aircraft in 2013, while Comac is aiming to put its larger, 168 seat-190-seat C919 narrow-body into service in 2016.

The move could help the company secure orders in the Chinese market, said Scott Rattee, an analyst at Stonecap Securities Inc. in Toronto.

No definitive agreement with Comac has been signed yet, a Bombardier spokeswoman said.

"It's the first step to subsequent agreements," she said.

Earlier this month, Bombardier signed an $8 billion aircraft-leasing agreement with ICBC Financial Leasing Co. and ICBC's major shareholder, Industrial Commercial Bank of China.

China, the world's most populous country, is reshaping the global aerospace industry's balance of power. China expects air traffic to grow quickly in coming years, with plane makers expecting the country to require thousands of commercial jets in the next two decades. While China has sought to compete with foreign jet makers, as it is doing with the C919, it also continues to buy lots of foreign-made planes.

The country has lined up a heavyweight list of Western partners for its C919, including General Electric Co. (NYSE:G), United Technologies Corp. (NYSE:UTX) and Rockwell Collins Inc. (NYSE:COL). The project is widely seen as a test run for larger and more advanced jets that might attract overseas buyers.




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