Bombardier cancels MyAir's order for 15 jets

Bombardier Aerospace has cancelled an order from Italy's MyAir for 15 of its CRJ1000 aircraft, citing the low-cost airline's "uncertain situation."

MyAir had initially ordered 19 of Bombardier's CRJ900 regional jets in 2006, and four were delivered. The airline later upgraded its order for the remaining aircraft to Bombardier's CRJ1000.

"Bombardier's decision comes as the air carrier is facing an uncertain situation," Bombardier said in a release Tuesday, without elaborating.

Italy's civil aviation authority suspended MyAir's licence, effective July 24, because of the airline's financial problems and service failures.

MyAir had been trying to recapitalize for several months, but was unable to find the necessary investors.

Bombardier did not say what the cancelled orders were worth, but terms released in previous orders for the CRJ1000 would put the figure at about $750 million.

Shares of Bombardier closed down 27 cents, or more than six per cent, to $4.06 on the Toronto Stock Exchange.