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Canada's answer to Boeing could be in for another blow

Jan 15, 2016, 21:24 IST

Bombardier

Bombardier's quest to right its financial ship may be about to take another blow.

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The aviation giant had reportedly been in to talks with United Airlines about a 30-aircraft order for its widely praised, but slow selling, C-Series airliner.

Unfortunately for Bombardier, it looks like Boeing and its 737-700 will end up taking home the $2 billion order sheet, Reuters reports.

Industry sources told Reuters that the Boeing's ability to offer a slightly larger aircraft and greater discounts gave them the edge over Bombardier.

With that said, its not quite a done deal. Boeing and United are said to be in final negotiations so things may yet change.

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Bombardier, which recently filed a request for further financial assistance from Canadian Government, is in desperate need for a headline-grabbing deal with a major airline to inject some new life into the C-Series project.

The Canadian airplane maker has been in a dog fight to recover from a tough 2015 in which the company was forced to write down $4.4 billion and take a $1.3 billion bailout.

One of the linchpins to Bombardier's turnaround strategy is to revive sales of the C-Series. The company has gone more than a year without registering a new order for its flagship product.

Although the C-Series is expected to enter service later this year with Swiss Global Air Lines, Bombardier still does not have an order from a major North American carrier. Bombardier hoped a United deal with the one to right the ship. Not all hope is lost. Bombardier is said to also be in talk with JetBlue over a potential C-Series order.

We have reached out to United, Bombardier and Boeing for comment.

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