Bombardier, Air Canada Sign Memorandum of Understanding
for 45 CRJ Regional Jets
TORONTO, ONTARIO-- DECEMBER 19, 2003 - 06:00 ET
Includes rights to acquire up to an additional 45 aircraft
Bombardier Aerospace announced today that Air Canada has signed a
Memorandum of Understanding (MOU) to acquire 45 Bombardier CRJ
regional jet aircraft with rights to acquire up to an additional
45 aircraft. A definitive purchase agreement will be signed in
early 2004.
The MOU covers firm orders for 15 Bombardier CRJ200 aircraft with
50 seats, and 30 Bombardier CRJ700 Series 705 aircraft with a
dual-class cabin configuration of nine business class and 65
economy seats. The MOU also includes the right to execute
reconfirmable orders for 15 Bombardier CRJ200 and 30 Bombardier
CRJ700 Series 705 aircraft.
List price value of the firm order would be approximately $1.3
billion U.S. ($1.8 billion Cdn.). Exercise of the reconfirmable
orders by Air Canada would bring the potential value of the
transaction to $2.7 billion U.S. ($3.6 billion Cdn.)
Deliveries of the CRJ200 aircraft would begin in the third
quarter of 2004, with Bombardier CRJ700 Series 705 deliveries
beginning in the second quarter of 2005, subject to finalization
of Air Canada's business plan.
Air Canada and Air Canada Jazz currently operate 35 Bombardier
CRJ100/200 aircraft.
"Acquisition of additional Bombardier CRJ aircraft represents
another key element of our long-term restructuring program," said
Robert Milton, president and chief executive officer, Air Canada.
"These new regional jets will enable Air Canada to compete more
effectively, by providing increased point-to-point service to
domestic and transborder markets, thereby generating additional
revenues.
"The Bombardier CRJ200 was the spearhead of our rapid and
successful expansion into U.S. markets in the mid-1990s," added
Mr. Milton. We fully expect the new Bombardier CRJ200 and
Bombardier CRJ700 Series 705 aircraft will play a significant
role in the future growth and prosperity of Air Canada."
"Air Canada is one of the most demanding airlines in the world in
terms of the technical and economic aspects of the aircraft it
selects," said Steven A. Ridolfi, president, Bombardier
Aerospace, Regional Aircraft. "Their decision to acquire
additional Bombardier CRJ200 aircraft and introduce the
Bombardier CRJ700 Series 705 to the Canadian market is a strong
endorsement of the well-proven economics and commonality benefits
of the Bombardier CRJ family."
As of November 30, 2003, the number of firm orders for Bombardier
CRJ Series aircraft stood at 1,289. Conditional orders and
options numbered 1,289 for a potential CRJ program total of 2,578
aircraft. On December 9, 2003, Delta Connection carrier Comair
took delivery of the 1,000th CRJ, making the CRJ program the
eighth commercial aircraft program to have reached the 1,000th
delivery milestone.
A world-leading manufacturer of innovative transportation
solutions, from regional aircraft and business jets to rail
transportation equipment, Bombardier Inc. is a global corporation
headquartered in Canada. Its revenues for the fiscal year ended
Jan. 31, 2003 were $21.2 billion Cdn and its shares are traded on
the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and
BBDd.F). News and information are available at
www.bombardier.com.
N.B. Fiscal year 2002-03 revenues have been restated following
the sale of the recreational products business.
(i) Trademarks of Bombardier Inc. or its subsidiaries. |
