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Bombardier loses bid for Indonesian airline order

Bombardier’s Q400 aircraft in this undated handout photo. European plane maker ATR has beat out Bombardier Inc. on an important turboprop order from an Indonesian airline.

Handout via Bombardier

European plane maker ATR has beat out Bombardier Inc. on an important turboprop order from an Indonesian airline.

State-owned PT Garuda Indonesia has decided to go with ATR's 72-600 turboprop aircraft over Bombardier's Q400 plane, with a firm order for 25 units and options on 10 more.

The total value of the deal, including options, is about $840-million (U.S.).

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Bombardier Aerospace spokesman Marc Duchesne said in an interview Wednesday that the Montreal-based company pitched Garuda, but that the carrier appears to have decided it didn't require the greater performance, longer range and roomier interior of the Q400.

The Q400 also costs more, he said.

Garuda president and chief executive officer Emirsyah Satar said in a news release that the ATR 72-600 is the best choice for the short-haul flights and operations between the various islands of Indonesia.

Garuda plans to lease the ATR aircraft from Nordic Aviation Capital.

One of ATR's arguments in the marketing of the ATR 72 is that the Q400 burns up to 47 per cent more jet fuel on shorter routes than its own plane.

Bombardier counters that it is misleading to stress the ATR 72's fuel economy because there are many factors to consider, including the Q400's versatility on different types of routes.

Bombardier maintains a good relationship with Garuda, with orders for several CRJ1000 regional jets it put in last year, said Mr. Duchesne.

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Bombardier and another Indonesia airline, Lion Air, confirmed last week they are in talks over a possible deal to buy the jet manufacturer's new narrow-body C Series jet.

The C Series made it first flight last month.

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About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More

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