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.
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