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Bombardier said on Friday it had given its aerospace unit clearance to seek customers for its new CSeries airliner.

The company said it should make a final decision this year on whether to proceed with the development of the plane, with service expected by 2013.

Bombardier said before requesting program launch approval from the company's board, Bombardier Aerospace will obtain firm commitments from customers for the 110- to 130-seat airliner.

A 2008 launch, which some analysts speculate might come at the Farnborough International Airshow in mid-July, would bring the CSeries into service five years later.

Bombardier already has government funding promised for the CSeries from Canada, the province of Quebec and Britain.

The company has an agreement with state-owned China Aviation Industry Corporation I to build its fuselage, while Pratt & Whitney would provide a new engine for the CSeries aimed at reducing fuel consumption by 20 percent.

The CSeries aircraft family is targeting the lower end of the 100- to 149-seat market segment, with an estimated value of USD$250 billion over the next 20 years. Bombardier's goal is to capture half this market.

(Reuters)