Chinese company Nantong Tongzhou Bay Aviation Industry Co., Ltd. has signed a letter of intent (LOI) to place a firm order for 30 Bombardier Q400 NextGen turboprops.
Nantong Tongzhou Bay Aviation has signed the LOI as it prepares to launch airline operations in China, through a regional carrier to be named Sutong Airlines.
Sutong Airlines, which is to be based in Nantong in Jiangsu province, plans to operate an all-Bombardier fleet of Q400 NextGen regional airliners when it starts operations in 2015.
Based on the list price for the Bombardier Q400 NextGen, the manufacturer values a potential firm order under Nantong Tongzhou Bay Aviation’s LOI at approximately US$995 million. This means the 2015 list price for the Q400 NextGen is appromixately US$33.2 million.
“With its regional aviation model set to revolutionize air service in Jiangsu, one of China’s most affluent and fast-growing provinces, Sutong Airlines will not only make traveling increasingly convenient for the people of Jiangsu, but will also bring tremendous economic benefits to the economies and communities of the province,” says Zhou Binzhen, president of Nantong Tongzhou Bay Aviation.
“As the sole aircraft manufacturer with three distinct and optimized families of aircraft in the regional and single-aisle market segments of up to 149 seats, Bombardier is pleased to support China’s five-year plan that calls for the expansion of regional airlines,” says Mike Arcamone, president of Bombardier Commercial Aircraft.
As of September 30, 2013 Bombardier had booked 476 firm orders for Q400 and Q400 NextGen turboprops.
For Bombardier Aerospace, the Sutong Airlines LOI could represent the second sales success in China within a week. On December 3, regional carrier China Express Airlines placed a firm order fo five Bombardier CRJ900 NextGen regional jets and took options on 11 more.