Bombardier Inc. said Wednesday that it had signed letters of intent with Delta Air Lines’ Comair and Atlantic Southeast Airlines units for 94 firm orders for regional jets, in a transaction valued at more than $2 billion.
Bombardier, one of Canada’s largest industrial groups, said the orders were for its 50- and 70-seat Canadair Regional Jets. The deal includes options for an additional 406 aircraft.
Bombardier said the order was the largest ever for regional jets–aircraft with 40 to 90 seats, used in a burgeoning industry for shorter hauls between urban centers.
Bombardier said it expects to sign a definitive agreement on the order within the next few months. Comair, based in Cincinnati, and Atlantic Southeast, based in Atlanta, will take delivery of the 94 jets between early 2001 and the end of 2004.
Buoyed by the new contract and other recent deals, Bombardier said it plans to increase the production rate in Montreal on its 50-seat CRJ 100/200 to 12.5 a month from 9.5, beginning in fall 2001. The company expects to make 135 CRJs in fiscal 2001-02 and 150 in fiscal 2002-03.
In a conference call with reporters, Bombardier Chief Executive Robert Brown said the production hike would add 600 jobs to the 12,300 at the plant.
