New Malaysian airline orders 20 Bombardier CS100 jets

KUALA LUMPUR, Malaysia (AP) — A new Malaysian airline, flymojo, Tuesday inked an agreement to buy 20 CS100 aircraft from Bombardier Inc., giving the Canadian manufacturer its first customer for the plane in Southeast Asia.

A joint statement said the deal, signed in preliminary form on the sidelines of an airshow in northern Langkawi island, is worth $1.47 billion based on the CS100's list price. Flymojo also has an option to buy another 20 of the same plane, which would increase the list price value to $2.94 billion.

Flymojo, which is expected to be a full service carrier, is entirely owned by Malaysians but officials declined to give details.

It will face fierce competition from flag carrier Malaysia Airlines and budget airline AirAsia. Malaysia Airlines is undergoing a revamp after two air tragedies last year including the baffling disappearance of Flight 370.

The statement said the airline will be operational in the first quarter of 2016, targeting Southeast Asian countries and their neighbors. Its main hub will be in Malaysia's southern Johor state, with a secondary hub in eastern Sabah on Borneo island, the statement said.

Deputy Transport Minister Aziz Kaprawi said the new airline will play a key role in improving connectivity between the Malaysian peninsula and Sabah and Sarawak states on Borneo.

"We are confident that our model will resonate deeply with our passengers and that the use of the technologically advanced CSeries aircraft will transform the aviation industry in Malaysia and the region," said flymojo Chairman Alies Anor Abdul.

The CS100 single-aisle plane is designed to carry up to 149 people. Bombardier so far has firm book orders for 243 Cseries planes.