Bombardier out of running for $3.2 billion New York transit contract

MONTREAL (Reuters) - Canada's Bombardier Inc is out of the running for an estimated $3.2 billion New York City subway contract, in what the plane and train maker on Tuesday called a disappointment.

Bombardier Transportation spokesman Eric Prud'Homme said the company's proposal to supply more than 1,000 subway cars to the Metropolitan Transportation Authority (MTA) was "no longer under consideration," but declined to specify a reason because the contract had not yet been awarded.

"We are extremely disappointed as we spent considerable time developing an innovative solution that included world-class subway cars, an attractive delivery schedule, a competitive price, and the creation of US jobs, many in New York State," he wrote by email.

MTA spokesman Kevin Ortiz declined to comment on the subway contract.

The Montreal-based company is in the middle of a turnaround plan to improve performance and profitability, including that of its German-headquartered rail division, which in July reported stronger second quarter margins and sales.

Bombardier has faced recent challenges in its North American business, including accusations of delays by a Canadian client, the Toronto-area transit agency Metrolinx.

In 2016, the company lost a $1.3 billion rail contract from another longstanding client, the Chicago Transit Authority, to China's CRRC Corp Ltd <601766.SS>.

Bombardier's rail division is said to be in advanced talks to form joint ventures with rival rail giant Siemens of Germany, although a deal has not been finalized.