Air Canada places $1.3 billion order

Bombardier Aerospace announced today that Air Canada has signed a Memorandum of Understanding to acquire 45 Bombardier CRJ regional jet aircraft for $1.3 billion.

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. Exercise of the reconfirmable orders by Air Canada would bring the potential value of the transaction to $2.7 billion.

Deliveries of the CRJ200 aircraft will begin in the third quarter of 2004, with Bombardier CRJ700 Series 705 deliveries beginning in the second quarter of 2005.