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Monday, October 9, 2006

Northwest Orders CRJs, Embraer 175s

At press time, Northwest (NWACQ) placed firm orders for 72 new aircraft split equally between Bombardier (BBD) CRJ 900s and Embraer (ERJ) 175s, the latter of which will be operated by Northwest's regional subsidiary Compass Airlines while the CRJs will go to an as yet unnamed Airlink partner. (RAN, April 10, p.1). Northwest said it also received options on the 76-seat planes from Bombardier and Embraer.

In addition to the order for 36 planes, Bombardier said it had taken options for an additional 96. Embraer indicated Northwest also optioned an additional 36 of the same type and up to 100 rolling-purchase rights. Bombardier said the value of its orders based on list price would be USD$1.35 billion for 36 planes, and the value could rise to USD$5.18 billion if all options are exercised. Embraer said the value of its order was not disclosed. Northwest said the new planes will lower its operating costs over aircraft they will replace such as the Avro Regional Jet 85 through lower fuel consumption and maintenance costs.

Northwest also said it continues in talks with unnamed aircraft makers for 100 seat planes to replace its DC-9 fleet, and it will take back 15 CRJ200 aircraft it previously rejected. Deliveries for the ERJs are scheduled to begin in the second quarter of 2007. The ERJs will be configured for 76 seats in dual-class configuration - 12 first class seats, and 64 coach class seats.