Bombardier awarded $7 billion aircraft order

Bombardier Aerospace today announced that it has signed a $7 billion contract with US Airways for the sale of up to 275 Bombardier CRJ aircraft.

Bombardier Aerospace today announced that it has signed a contract with US Airways of Arlington, Virginia for the sale of up to 275 Bombardier CRJ aircraft.

US Airways has placed 85 firm orders (60 firm orders for 50-seat Bombardier CRJ200 and 25 firm orders for 75-seat Bombardier CRJ700 Series 705) for a total value of $2.2 billion.

The carrier has also placed 90 reconfirmable orders and 100 options, which can be exercised across a mix of Bombardier CRJ200 and CRJ700 models. The total value of the contract is estimated to be $7 billion.

The 85 firm orders include the transfer of 36 Bombardier CRJ firm orders currently held by GECAS (GE Capital Aviation Services) to US Airways. The net effect on the current firm order backlog will be an increase of 49 aircraft.

Deliveries are scheduled to commence in the fourth quarter of 2003 and continue through the second quarter of 2005.

‘These new regional jets will enable US Airways to generate additional revenue by growing our route network and competing more vigorously in short- to medium-length haul markets,’ said US Airways president and chief executive officer David N. Siegel. ‘Regional jets will allow us to replace and complement larger jet aircraft on routes with poor to marginal performance, which then can be re-deployed to operate in more profitable destinations.’