Bombardier Aircraft Purchase Agreement

But we are also acquiring other large business jets from Bombardier, Dassault, Embraer and Gulfstream with the same meticulous processes we have developed for larger aircraft. Bombardier Commercial Aircraft announced today that a firm sales agreement, in accordance with the conditional agreement announced on January 24, 2017, has been concluded with Dublin-based regional airline CityJet. The fixed agreement includes six CRJ900 aircraft and options for four more aircraft. Once delivered, the aircraft will be operated as part of the Scandinavian Airlines (SAS) network. As previously announced and based on the list price of the CRJ900 aircraft, the fixed contract is valued at approximately $280 million and could reach $467 million if CityJet exercises all of its options. « The Q400 aircraft offers a perfect balance of passenger comfort and cost-effectiveness, while maintaining its unmatched advantage in range and speed over other turboprops, » said Fred Cromer, President, Bombardier Commercial Aircraft. « The global demand for turboprop aircraft is enormous and the Q-Series aircraft are ideally positioned to meet the needs of regional airlines as they offer a unique ability to serve diverse and challenging environments. The Q400 offers the lowest seat cost among turboprops, with an improved passenger experience and proven reliability of 99.5 percent. In corporate aviation, Kestrel focuses on the purchase of Airbus and Boeing aircraft for the transition to the roles of VVIP, corporate and heads of state. As a rule, an aircraft manufacturer has a standard purchase contract that it holds with all its customers. However, certain commercial conditions are negotiated between the parties and correspondence agreements are often concluded between the aircraft manufacturer and the customer in order to supplement the terms of the aircraft purchase contract (see important provisions of a sales contract below). Bombardier Signs Firm Sale Agreement for 6 Q400 Aircraft « The Q400 aircraft offers a perfect balance of passenger comfort and profitability while maintaining its unmatched advantage in range and speed over other turboprops, » said Fred Cromer, President, Bombardier Commercial Aircraft. CityJet currently has a fleet of eight CRJ900 aircraft that are in lease service with SAS. The airline will also receive four new CRJ900 aircraft in early 2017, in line with Bombardier`s order announcement on April 25, 2016, bringing its own fleet of CityJet CRJ900 aircraft to 12.

As part of the acquisition of Cimber A/S, a regional airline in Denmark and a former 100% subsidiary of SAS, CityJet will also operate Cimber`s fleet with 11 CRJ900 aircraft as part of a lease service with SAS. These aircraft will be replaced by up to 10 additional CRJ900 aircraft ordered under the forward sale agreement announced today with Bombardier. Based on the list price of the Q400 aircraft, the fixed contract is estimated at approximately $202 million. « The CRJ900 aircraft has proven to be cost-effective and operationally flexible to support our contracted flight with Scandinavian Airlines, and we look forward to the delivery of ten more on the firm sale agreement announced today, » said Pat Byrne, Executive Chairman of CityJet. « We are also pleased with the improved passenger comfort of the CRJ900 aircraft. » « With this firm sales agreement, CityJet continues its confidence in Bombardier and its products…

 

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