Indian Airline NEWS: Bombardier didn't lose out to Airbus on massive Indian order.

MONTREAL - Bombardier's new CSeries planes didn't lose out to rival Airbus when an Indian discount carrier announced what could be the largest potential order in aviation history, Bombardier CEO Pierre Beaudoin said Friday.

Discount carrier IndiGo has signed a preliminary agreement to purchase 180 Airbus aircraft valued at US$15.6 billion.

But Beaudoin said Bombardier doesn't have a product large enough to compete with the Airbus A320, or its re-engined A320 neo.

"We don't make an airplane in this category so you can't win something if you don't have a product," Beaudoin said in an interview with an Indian television station in Davos, Switzerland.

IndiGo plans to configure the plane with more than 170 seats. The largest CSeries will have a maximum of 149 seats.

Nonetheless, Beaudoin said Montreal-based Bombardier is determined to tap into the massive growth of commercial aviation in India by selling its commercial planes, including the new CSeries.

"We think there's a huge market in India because (the CSeries) consumes 20 per cent less fuel than the best airplane on the market today and, given that fuel is so expensive in India, airlines will have a great benefit."

The CSeries will eventually compete with the smaller A319, which can be configured with 124 to 156 seats.

He said the Indian market should grow by more than 20 per cent a year. But the need to accommodate the dramatic growth is now pushing officials to develop sufficient air traffic control and airport infrastructure.

"So I think it's going to be a good period for Indian airlines."

Bombardier (TSX:BBD.B) has forecast India will take delivery of 600 commercial planes over the next 20 years in the 20- to 149-seat category and that India will account for 36 per cent of deliveries to the Asia-Pacific region, excluding China, during the period.

The addition of new regional airports are a great opportunity for Bombardier's Q400 turboprops. They can serve smaller runways, are 30 per cent more fuel efficient than jets and can allow airlines to increase the frequency of their service, he added.

NEHA JAIN

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