SAS Settles with BBD, Goodrich, Orders More BBD Equipment

Despite the debacle created by three Q400 crash landings at SAS Scandinavian Airlines, SAS and three of its affiliate airlines have signed firm orders for 27 regional jets and turboprops and have taken options on an additional 24 aircraft as part of a settlement reached with Bombardier and landing gear...

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Despite the debacle created by three Q400 crash landings at SAS Scandinavian Airlines, SAS and three of its affiliate airlines have signed firm orders for 27 regional jets and turboprops and have taken options on an additional 24 aircraft as part of a settlement reached with Bombardier and landing gear manufacturer Goodrich. Related Story The value of the combined firm orders based on CRJ900 NextGen and Q400 NextGen list prices is approximately $883 million. The value of the orders could increase to approximately $1.75 billion if all options are exercised.
The deal was contingent on reaching a settlement for expenses incurred during the problems last fall and summer which led to the airline grounding its 27 Q400s. SAS confirmed that the total financial compensation is just above SEK 1 billion in cash and credits for future aircraft orders. However, the official announcement only said that the three parties “have come to a mutually satisfactory agreement – the terms of which are confidential.” Bombardier did say the settlement would not impact its bottom line.
Estonian Air of Tallinn, Estonia and SAS have placed firm orders for 13 Bombardier CRJ900 NextGen regional jets along with options on an additional 17, while Widerøe’s Flyveselskap A/S of Bodø, Norway and airBaltic of Riga, Latvia have ordered 14 Q400 NextGen turboprops along with options on seven more. “The firm order for 27 aircraft will bring a rejuvenated premium product to our customers,” said
Mats Jansson, president and CEO, SAS Group. “The CRJ900 and Q400 NextGen aircraft are well-suited to our operations in Northern Europe, where our customers expect comfortable and environmentally friendly travel."
“We are proud to extend our long-standing partnership with SAS and its partner airlines,” said
Steven Ridolfi, president, Bombardier Regional Aircraft. “This order is not only a milestone in terms of size and value, but is a testament to the strength of our relationship. SAS has been a Bombardier customer for eight years, Widerøe for 50 years, and now we welcome airBaltic and Estonian Air to our family. We are also very pleased that SAS and its affiliates have chosen our NextGen family, both turboprops and jets, to augment their fleets.”
Olev Schults, who chairs the Estonian Air supervisory board, and Jansson said their airlines require aircraft with less capacity than their mainline jets. “The CRJ900 NextGen jet offers the best combination of performance, operating economics and passenger comfort,” they said.
airBaltic will start substituting its current Fokker 50 fleet with Q400 NextGen aircraft in 2009 thus increasing the capacity and efficiency of the airline’s regional operations.
The transactions increase firm orders for CRJ900/CRJ900 NextGen airliners to 242 aircraft, with 145 delivered at January 31, 2008. Q400/Q400 NextGen aircraft firm orders now stand at 296 aircraft, with 190 delivered as of January 31, 2008.