Bombardier Aerospace Concludes a Successful Farnborough Airshow

[theaveragejoe]

July 13, 2012 — Farnborough, United Kingdom

Aerospace

Bombardier Aerospace today concluded a successful week at the 2012 Farnborough International Airshow, where it had the opportunity to connect with business and commercial aircraft customers from around the world and announced up to $3.27 billion in firm orders and other commitments for its Q400 NextGen, CRJ and CSeries aircraft.

“We arrived at Farnborough with solid momentum following a strong first half of the year, and I’m delighted with the success we have had this week,” said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. “This airshow is a wonderful opportunity for us to connect with our stakeholders across the industry, and I’m very pleased with the level of interest and activity we’re seeing in all of our aircraft programs and services.”

“We have had a tremendous volume of traffic in our chalet, the CSeries Dome that houses the CSeries aircraft cabin demonstrator and flight deck, and the static display. We have proudly introduced our new brand promise, The Evolution of Mobility, to customers, suppliers, government representatives, industry partners and members of the media that we interacted with over the course of the week,” added Mr. Hachey.

Since July 7, Bombardier Commercial Aircraft announced firm orders and other commitments for up to 52 aircraft worth up to $3.27 billion US with China Express Airlines, airBaltic, Jazz Aviation LP and an undisclosed customer. Bombardier Commercial Aircraft has had a great start to 2012 with 154 orders, including firm and conditional orders as well as options, from 11 customers from across the globe. During the show, Bombardier Commercial Aircraft also briefed members of the media on the CSeries aircraft program, including on its discussions with Ilyushin Finance Co. and AirAsia, as well as held events with Nordic Aviation Capital, Flybe and Pratt & Whitney. In addition, Jazz Aviation grabbed headlines with the announcement that it had enrolled its fleet of Q400 NextGen aircraft in Bombardier’s Smart Parts cost protection program, making it the fifth prominent airline worldwide to have signed a customized long-term Smart Parts agreement for its Q400 aircraft fleet in the past few months.

The airshow was also an opportunity for Bombardier Business Aircraft to continue or start discussions with multiple customers and provide an update on its Learjet aircraft development programs. During a press conference on Wednesday, July 11, Ralph Acs, Vice President and General Manager, Learjet, Bombardier Business Aircraft, confirmed that there are now four Learjet 85 test aircraft in various stages of fabrication. The Learjet 70 and Learjet 75 aircraft program is also progressing well, with the first two flight test aircraft having already logged more than 135 flights and 600 test hours.

With the London 2012 Summer Olympic Games only a couple of weeks away, Bombardier Customer Services announced the opening of its newest Regional Support Office at Farnborough, United Kingdom. The office, the latest addition to Bombardier’s fast-growing footprint of global services, will anchor regional support capabilities for the growing number of Bombardier business aircraft customers in Europe, and Bombardier Business Aircraft customers traveling through London during the Olympic Games can expect bolstered on-site support round the clock from July 23 to August 17, 2012.

 

 

http://www.bombardier.com/en/corporate/media-centre/press-releases/details?docID=0901260d8022823b

[theaveragejoe]

Chorus Aviation Inc. exercises options to acquire additional Bombardier Q400 NextGen aircraft

HALIFAX, Jul 12, 2012, 2012 (Canada NewsWire via COMTEX) --Chorus Aviation Inc. ('Chorus') (TSX: CHR.B CHR.A CHR.DB) today announced it has exercised six of 15 options it holds to acquire additional Bombardier Q400 NextGen ('Q400') aircraft to be operated by its subsidiary, Jazz Aviation LP ('Jazz') under the Air Canada Express brand.

"The ongoing rejuvenation of the Jazz fleet will deliver value to all of our stakeholders," stated Joe Randell, President and Chief Executive Officer, Chorus. "The replacement of the older regional jets by these efficient, state-of-the-art aircraft will translate into better operating economics and passenger comfort with less environmental impact. While our total current seat capacity is relatively unchanged, these larger, fuel-efficient turboprops will reduce our Cost per Available Seat Mile."

"As the Canadian aviation landscape continues to change, increased Q400 service in Air Canada's regional network will improve customer experience in these markets." said Calin Rovinescu, President and Chief Executive Officer, Air Canada. "Jazz has been a valued partner and longstanding brand ambassador for Air Canada in many communities across Canada. As the world's largest operator of Dash 8 aircraft, they've proven to be an expert in regional operations as evidenced by their consistently high standards of safety and operational performance. The introduction of their Q400s in our network has been seamless and has been met with high customer satisfaction."

Jazz will operate 16 Q400s this month under the Air Canada Express brand, which includes one Q400 on short term lease for the peak summer season only. The Q400 aircraft accommodate 74 passengers, and are configured in a single cabin. The six optioned Q400s are contracted to be delivered at a rate of two per month in February, March and April, 2013, and will be placed into operation the subsequent month. A total of nine 50-seat CRJ 100 aircraft will be removed from the Jazz fleet between December, 2012 and May, 2013. As a result, the covered fleet under the Capacity Purchase Agreement with Air Canada ('CPA') will be reduced from 125 to 122 aircraft, with the overall seating capacity, operated under the CPA with Air Canada, being held relatively constant.

"Jazz flies more daily flights in Canada than any other airline with an exclusive fleet of Canadian-made aircraft," continued Mr. Randell. "Jazz has been an integral part of regional communities across our nation since the 1930s, and we're pleased to make this reinvestment and greater commitment to the 56 Canadian regional markets we currently serve as part of Air Canada's network."

The new aircraft will be leased via a Chorus leasing company to Jazz. The purchase is supported by a third party lender under terms similar to the original order of 15 Q400 aircraft. The transaction is anticipated to be accretive to Chorus' consolidated operating results. As required under the purchase agreement, Chorus has made pre-delivery payments of approximately $13 million USD which have been funded from current cash balances and will not impact Chorus' current dividend policy.

In support of the continued fleet renewal program at Jazz, Air Canada and Jazz have agreed to amend their CPA to reflect the following:

-- Covered Aircraft reduced from 125 to 122 aircraft, resulting in

a net reduction of six seats in the entire Jazz CPA fleet

effective May, 2013 once all Q400 aircraft have been introduced

into service.

 

-- In February 2013 when the number of Covered Aircraft reaches

122 aircraft, the annual minimum guaranteed Block Hours of

339,000 will be reduced to approximately 331,000 Block Hours to

reflect the new number of Covered Aircraft.

 

-- The agreement between the parties does not change the mark-up

on controllable costs structure and mark-up rates but

establishes new metrics resulting from the new annual minimum

guaranteed Block Hours as follows:

o The Compensating Mark-up will now be applied based on the range

between the new annual minimum Targeted Block Hours of

approximately 367,000 and the revised annual minimum guaranteed

Block Hours of approximately 331,000. The difference between the

annual minimum guaranteed Block Hours and the annual minimum

Targeted Block Hours remains at 36,000 Block Hours. This agreement

also resolves one of the issues raised in the 2009 Benchmark

Arbitration with reference to how the Compensating Mark-up formula

will be applied.

 

o Mark-up on variable controllable costs for annual Block Hours over

375,000 will remain at 5.0%.

 

 

 

The exercise of the six options and the amendments to the CPA do not result in any change to Chorus' current annual Block Hour guidance for the year 2012 of between 385,000 and 400,000 hours.

 

http://phx.corporate-ir.net/phoenix.zhtml?c=194177&p=irol-newsArticle&ID=1714149&highlight=