The big Star order, part 1: AC going for Bombardier and Embraer!
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The big Star order, part 1: AC going for Bombardier and Embraer!
15 CRJ 200
30 CRJ 705
45 Embraer 190
http://micro.newswire.ca/release.cgi...3213-0&Start=0
Wonder what that means for the rest of that huge order.
30 CRJ 705
45 Embraer 190
http://micro.newswire.ca/release.cgi...3213-0&Start=0
Wonder what that means for the rest of that huge order.
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BREAKING NEWS
UPDATED AT 8:24 AM EST Friday, Dec. 19, 2003
Bombardier signs $1.3-billion (U.S.) jet pact with Air Canada
By TERRY WEBER
Globe and Mail Update
Air Canada said Friday it has split a regional jet order between Bombardier Inc. and Brazil's Embraer SA, with the Montreal-based aerospace giant securing a $1.3-billion (U.S.) order for 45 aircraft and an option for 45 more.
If the option is exercised, the value of the deal between Air Canada and Bombardier jumps to $2.7-billion under a memorandum of understanding signed between the two.
A definitive purchase agreement will be signed in early 2004.
Air Canada is currently restructuring under bankruptcy protection. Delivery of the aircraft would start in the third quarter of next year if the carrier can finalize its business plan, Bombardier said in a statement.
Air Canada's purchase of the jets is part of the carrier's North American fleet strategy, which also saw it announce Friday the additional purchase of 45 more jets from Bombardier rival Embraer of Brazil.
“Now that we have clarity in the completion of our equity process, pressing matters relating to Air Canada's restructuring should proceed without delay in the interests of all stakeholders,” Air Canada president and chief executive officer Robert Milton said.
“The small jet aircraft are fundamental to our emergence as a stronger, more cost effective airline.”
The decision to go with both Montreal-based Bombardier and Embaer, he said, was made after “a lengthy and rigorous evaluation during which we considered the feedback from all stakeholder groups including customers and employees.”
The aircraft covered under Friday's agreements, he added, allow “low-cost, high-frequency jet service” to destinations in both Canada and the Untied States.
“For Air Canada, they will provide the flexibility and cost-competitiveness to serve dozens of North American markets on a financially viable basis,” Mr. Milton said.
The Bombardier order consists of 15 50-seat CRJ[Canadair Regional Jet]-200 and 30 74- seat CRJ-705 aircraft, with delivery set to begin next September.
Air Canada will configure the CRJ -200 aircraft in a single hospitality class of service with 50 seats, four seats.
The CRJ-705 aircraft will be configured in two classes of service with nine seats in executive class, positioned three across, and 65 seats in hospitality, with four abreast.
“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,” Steven Ridolfi, president of Bombardier Aerospace's regional aircraft operation, said in a statement.
“Their decision to acquire additional Bombardier CRJ-200 aircraft and introduce the Bombardier CRJ-700 Series 705 to the Canadian market is a strong endorsement of the well-proven economics and commonality benefits of the Bombardier CRJ family.”
The Embraer order, meanwhile, consists of 45 firm 93-seat Embraer 190 aircraft. Deliveries are scheduled to begin in November 2005. The order also carries an option for another 45 jets.
UPDATED AT 8:24 AM EST Friday, Dec. 19, 2003
Bombardier signs $1.3-billion (U.S.) jet pact with Air Canada
By TERRY WEBER
Globe and Mail Update
Air Canada said Friday it has split a regional jet order between Bombardier Inc. and Brazil's Embraer SA, with the Montreal-based aerospace giant securing a $1.3-billion (U.S.) order for 45 aircraft and an option for 45 more.
If the option is exercised, the value of the deal between Air Canada and Bombardier jumps to $2.7-billion under a memorandum of understanding signed between the two.
A definitive purchase agreement will be signed in early 2004.
Air Canada is currently restructuring under bankruptcy protection. Delivery of the aircraft would start in the third quarter of next year if the carrier can finalize its business plan, Bombardier said in a statement.
Air Canada's purchase of the jets is part of the carrier's North American fleet strategy, which also saw it announce Friday the additional purchase of 45 more jets from Bombardier rival Embraer of Brazil.
“Now that we have clarity in the completion of our equity process, pressing matters relating to Air Canada's restructuring should proceed without delay in the interests of all stakeholders,” Air Canada president and chief executive officer Robert Milton said.
“The small jet aircraft are fundamental to our emergence as a stronger, more cost effective airline.”
The decision to go with both Montreal-based Bombardier and Embaer, he said, was made after “a lengthy and rigorous evaluation during which we considered the feedback from all stakeholder groups including customers and employees.”
The aircraft covered under Friday's agreements, he added, allow “low-cost, high-frequency jet service” to destinations in both Canada and the Untied States.
“For Air Canada, they will provide the flexibility and cost-competitiveness to serve dozens of North American markets on a financially viable basis,” Mr. Milton said.
The Bombardier order consists of 15 50-seat CRJ[Canadair Regional Jet]-200 and 30 74- seat CRJ-705 aircraft, with delivery set to begin next September.
Air Canada will configure the CRJ -200 aircraft in a single hospitality class of service with 50 seats, four seats.
The CRJ-705 aircraft will be configured in two classes of service with nine seats in executive class, positioned three across, and 65 seats in hospitality, with four abreast.
“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,” Steven Ridolfi, president of Bombardier Aerospace's regional aircraft operation, said in a statement.
“Their decision to acquire additional Bombardier CRJ-200 aircraft and introduce the Bombardier CRJ-700 Series 705 to the Canadian market is a strong endorsement of the well-proven economics and commonality benefits of the Bombardier CRJ family.”
The Embraer order, meanwhile, consists of 45 firm 93-seat Embraer 190 aircraft. Deliveries are scheduled to begin in November 2005. The order also carries an option for another 45 jets.
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I would suspect so, Sevenfourseven. However, don't forget there is more to come: the other, European STAR Alliance members - SK, OS and LH - have still to choose and both SK and OS were (and in SK's case, still are) significant DC9/MD80 operators. However, I just don't see it going the 717's way.
NW is another possibility, but again, it seems happy enough to keep plodding on with them anc being a 319/320 customer already, I wouldn't be too hopeful there.
It doesn't help either that the 717s with which Jetstar is starting operations will be released back onto the secondhand market once the carrier is established with A320s. I can't think that will do much for the aircraft's price.
NW is another possibility, but again, it seems happy enough to keep plodding on with them anc being a 319/320 customer already, I wouldn't be too hopeful there.
It doesn't help either that the 717s with which Jetstar is starting operations will be released back onto the secondhand market once the carrier is established with A320s. I can't think that will do much for the aircraft's price.
