By Rebecca Rayko,
Associate Editor
Farnborough, England - Bombardier will announce a third customer order tomorrow for its Canadair Regional Jet series bringing the total value of CRJ orders in the last week to $750 million for the manufacturer. Bombardier announced orders from two US regional carriers, Midway Airlines and Atlantic Southeast Airlines, last week before joining the Farnborough Air Show today in England.
Midway Airlines converted seven existing options to firm orders last week for the 50-seat CRJ-200ER for delivery between July and December 1999. The carrier in April added three additional orders, and last October announced an original order of 10, bringing its total current order to 20 CRJ-200ERs. Bombardier values the order at $148 million. Midway plans to expand service from its Raleigh-Durham, NC, hub with the fleet additions. Its destinations currently span from Boston to Fort Lauderdale.
Atlantic Southeast Airlines ordered 12 70-seat CRJ-700s and 15 50-seat CRJ-200s. This is the first order for ASA of the larger CRJ model, but the carrier already operates the CRJ-200. The combined order is valued at $575 million.
The CRJ-200s will begin delivery in February 2000 and continue at a rate of one per month. The CRJ-700s will commence deivery in the fourth quarter of 2001 and be completed in the first quarter of 2003.
Bombardier says it has begun the assembly of the –700 series at its Montreal facility. Testing for the wing will begin in March, and the first flight testing will begin in June. Bombardier plans to roll out the first CRJ-700 during the second quarter of 1999. Certification will be completed by the end of 2000 with deliveries beginning the next year. Bombardier says the CRJ-700 combines the new technology developed for its ultra-long-range Global Express business jet with components and systems from the CRJ-100/200 series.
Emphasizing its "very strong" commitment to its turboprop family, Bombardier today at Farnborough officially unveiled its Q Series of Dash 8 aircraft: the 37-seat Q200, 50-seat Q300, and 68-78 seat Q400.
The Q, or "quiet," series features the noise and vibration suppression (NVS) system developed by Bombardier and Ultra Electronics which the manufacturer says produces an average cabin noise level of 75.1 dBA at maximum cruise speed, comparable to that of jet aircraft and less than that of the CRJ flying at Mach 0.74 at 25,000 feet.
Bombardier chairman Robert Brown says the turboprop line's very strong history and healthy backlog will sustain profitability during the impending industry downturn. These factors also justify the company's continuing investment into its turnboprop family.
"There was no real investment in turboprop technology until our 400Q series," Brown said. "This program will beat everything else hands down in terms of operating costs."
While orders for the Dash 8-400 line have been lacking, Robert Gillespie, who heads up Bombardier Regional Aircraft Division, says people are simply waiting for proof of its operating capabilities and that there is "much interest in Europe and North America." The program is in a comparable stage now as the CRJ was in shortly after its launch a few years ago.
"People were skeptical of our CRJ when it was launched during the last industry downturn," adds Brown, but the CRJ has gone on to become a success. Although Bombardier has no customers to announce for the Dash 8-400, Gillespie says they are "quite comfortable" with that.
Once the spike of orders for regional jets passes, Gillespie adds, the industry will focus once again on the economics of the turboprop.
Brown says Bombardier is still trying to resolve the ongoing trade dispute with Brazilian manufacturer Embraer and that it will compete fully during the dispute. The matter is under review by a government panel and is expected to have a report ready in 90 days.
"Realistically this will take three to six months," Brown says. "We feel strongly the way ProEx is being used is illegal, and we will protest this until the end."