WestJet, JetBlue founder commits to $5.4B aircraft deal for new airline

Airbus renamed the C Series jet acquired from Bombardier Inc. the

A new U.S. airline has placed an order for 60 Airbus A220-300 aircraft, offering more encouraging news to Bombardier's Belfast workforce.

"This U.S. airline startup's decision for the A220 as the platform on which to launch their new business model is a testament to the passenger appeal and operating economics of this outstanding aircraft", said Eric Schulz, chief commercial officer for Airbus.

A memorandum of understanding for the aircraft which was developed by Bombardier Inc. was announced at the Farnborough Air Show.

Neeleman is exploring the possible creation of a new low-priced carrier in the US, trade publications Airline Weekly and Airfinance Journal reported last month.

Deliveries of the jets, formerly known as CSeries, will begin in 2021.

Neeleman said the aircraft with up to 150 seats will enable the airline to serve secondary routes, especially longer-range flights.

Trade publication Airline Weekly reported in June that Neeleman's company plans to target smaller airports for entry into the USA market, hoping to draw passengers away from larger travel hubs, where flyers face longer waits in congested terminals.

The Brazilian-American entrepreneur has a long history of founding successful carriers.

The new airline is backed by a group of investors led by David Neeleman, who is also an investor in TAP in Portugal and controlling shareholder in Azul airlines in Brazil.

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