Republic Airways reach "deferral" deal with Bombardier:
REUTERS-Republic Airways along with Republic Airline and Bombardier, Learjet, and C Series Aircraft partnership entered into contract change order
Oct 26 Republic Airways Holdings Inc
* Republic Airways -On Oct 20, 2016, co along with Republic Airline and Bombardier, Learjet, and C Series Aircraft Limited partnership entered into contract change order
* Republic Airways -Amendment provided for deferral of scheduled aircraft payments to Bombardier and scheduled aircraft deliveries
* Republic Airways -In addition, co and Bombardier parties reached a settlement agreement to provide for a general unsecured claim in amount of $1.5 million
My read: this deal effectively ends Republic's CSeries order (there is zero value for Republic to ever exercise the deferrals**) but allows Bombardier to "save face" and keep those CS300 orders in the books, i.e., to avoid
PR damage from having them removed.
**(To Republic the CSeries order was an asset because it held early production slots for the CS300s, which potentially could be resold to other airlines. But since those early slots have been released, and is not restored by a deferral agreement, the value of the contract is effectively zero. If Republic ever want to take delivery of CS300s they'd have to get back in line and negotiate a new pricing deal just like any other customer).