Canadian Aerospace and rail company Bombardier, Inc. (BBD_A.TO,BBD_B.TO) said its Berlin, Germany - based rail technology division Bombardier Transportation signed a frame agreement with Deutsche Bahn AG for delivery of upto 450 locomotives. The deal is worth 1.5 billion euros or $2 billion.
In a separate release, Bombardier Aerospace said it secured orders for 12 Global 8000 Business Jets, valuded at $804 million at list prices. The announcement at the Paris Airshow, has not revealed the name of the client.
The Montreal, Canada-based Bombardier said the agreement with Deutsche Bahn includes options for the call-off of up to 450 locomotives by 2020. The first call-off of 110 locomotives for DB Schenker Rail and 20 for DB Regio was exercised on June 17, with a total value of 430 million euros or $573 million.
Bombardier said the locomotives are designed for speeds of up to 160 kilometer per hour and on request, they can be equipped with 'Last Mile' functionality to increases the efficiency of rail traffic. The locomotives will fulfil the latest European norms and technical standards and are characterized by low life cycle costs and high energy efficiency.
Deutsche Bahn already have a locomotive fleet of 700 Traxx and have been managing passenger transport for more than a decade.
At the airshow, Bombardier Aerospace also secured order for 20 Challenger 350 jets valued at approximately $518 million at list prices. If all the options are exercised, the total value of the order is approximately $1.035 billion. Deliveries for the Challenger 350 large cabin jets, launched last May 20, will begin in mid-2014.
Seattle-based Horizon Air converted its previous option to aquire three 76-seat Bombardier Q400 NextGen turboprop airliners and reconfirmed its options on another seven Q400 NextGen aircraft. The value of three Q400 NextGen aircraft is approximately $98 million at list prices.
BBD-B.TO closed Monday's trading on the TSX at C$4.70, and BBD-A.TO closed at C$4.69.
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