Amtrak and Bombardier/Alstom Consortium Announce
Resolution of Legal Claims
MONTREAL, QUEBEC--MARCH 17, 2004 - 06:15 ET
The Consortium of Bombardier/Alstom and Amtrak
today announced an agreement, settling all current legal disputes
associated with the comprehensive $1.2 billion US high-speed rail
program. This program covered delivery, performance and
maintenance, for a ten year period, of 20 high-speed Acela
Express(i)(i) trainsets, the purchase of 15 additional high-speed
electric locomotives and the construction of three new
maintenance facilities.
Under the terms of the agreement, the parties will drop all
claims against each other relating to the program and the
Consortium will be entitled to receive up to $42.5 million US
against approximately $70 million US that Amtrak previously
withheld. In addition, the parties will amend the maintenance
services contract for the trainsets, allowing Amtrak to assume
responsibility for the trains' maintenance in October 2006.
"Instead of continuing to spend unnecessary time and money on
costly and attention-diverting litigation, the full focus of our
efforts will now be on improving the performance of Acela Express
and delivering the best service we know how for the passengers
who enjoy and depend on it," said Amtrak President and CEO David
L. Gunn.
"The Consortium is satisfied with the solution reached out of
court with Amtrak," commented Paul Tellier, President and Chief
Executive Officer of Bombardier Inc. "The Consortium will
respect Amtrak's strategy to provide maintenance services and
will take the necessary steps to ensure a seamless transition
between now and October 2006," added Mr. Tellier.
In November 2001, Bombardier filed a lawsuit against Amtrak in
the U.S. District Court for the District of Columbia seeking
damages in connection with the high-speed rail project. Amtrak
then countersued, seeking its own damages in connection with the
project. The agreement announced today settles Bombardier's
lawsuit and Amtrak's countersuit, and speeds up to October 2006
the transfer of the maintenance responsibility from the Northeast
Corridor Maintenance Service Company (or NECMSC) to Amtrak. The
transfer was originally foreseen in 2013.
Amtrak and NECMSC have committed to work closely together over
the next three years to ensure and maximize the trains'
operational reliability.
"During the transition period, training will be provided to
Amtrak employees and after October 2006, NECMSC will continue to
provide equipment parts and technical advice to Amtrak's
Mechanical department, as needed," explained Mr. Fred Einbinder,
Chairman of the Board of NECMSC and General Counsel of ALSTOM
Transport.
Acela Express is Amtrak's premium service in the Northeast, with
10 daily roundtrips between Boston and New York, including
intermediate stops, and 13 daily roundtrips between Washington
and New York, with intermediate stops.
Development of the high-speed service began in 1996, when Amtrak
and the Consortium agreed to the design and manufacture of the
Acela Express trainsets, the building of maintenance facilities
in Boston, New York and Washington, and maintenance of the
equipment for a period of ten years. (The 10-year term started in
2003.) The first of the trainsets was delivered in December,
2000 and since its introduction into revenue service, more than 6
million passengers have ridden Acela Express.
Note to editors:
About Amtrak
Amtrak provides intercity passenger rail service in 500
communities in 46 states across a 22,000-mile route system. For
schedules and fares, visit Amtrak's website at www.amtrak.com or
call 800.USA.RAIL.
About Bombardier
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, 2004, were $21.3 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.
About Alstom
ALSTOM is a global leader in power generation and rail transport
infrastructure. The Company serves the energy market through its
activities in the field of power generation and the transport
market through its activities in rail and marine. ALSTOM's annual
sales are around euros 17 billion. It employs 75,000 people in
over 70 countries worldwide. www.alstom.com
About NECMSC
The Northeast Corridor Maintenance Service Company (NECMSC) is
jointly owned and operated by Bombardier and Alstom. It was
created to provide maintenance and related services for
high-speed trainsets operated by Amtrak. NECMSC conducts
servicing activities at three maintenance facilities in Boston,
New York and Washington, D.C. NECMSC management team oversees
maintenance operations carried out by Amtrak.
(i)(i) Acela Express is a trademark of Amtrak |
