Amtrak and Bombardier/Alstom Consortium Announce Resolution of Legal Claims.Business Editors MONTREAL--(BUSINESS WIRE)--March 17, 2004 The Consortium of Bombardier/Alstom and Amtrak Amtrak, the National Railroad Passenger Corp., authorized to operate virtually all intercity passenger railroad routes in the United States. Amtrak was created by Congress in 1970 in response to more than two decades of continuous operating deficits by privately run today announced an agreement, settling all current legal disputes associated with the comprehensive $1.2 billion US high-speed rail High-speed rail is a type of passenger rail transport that operates significantly faster than the normal speed of rail traffic. Specific definitions include 200-320 km/h (125-200 mph) - depending on whether the track is upgraded or new - by the European Union and above 90 mph program delivery. This program covered delivery, performance and maintenance, for a ten year period, of 20 high-speed Acela Express Acela Express (often called simply Acela, leading to early confusion with the Acela Regional and Acela Commuter) is the name used by Amtrak for the high-speed tilting train service operating between Washington, D.C. (i)(i) trainsets, the purchase of 15 additional high-speed electric locomotives and the construction of three new maintenance facilities. Under the terms of the agreement, the parties will drop all claims against each other relating to the program and the Consortium will be entitled to receive up to $42.5 million US against approximately $70 million US that Amtrak previously withheld. In addition, the parties will amend the maintenance services contract for the trainsets, allowing Amtrak to assume responsibility for the trains' maintenance in October 2006. "Instead of continuing to spend unnecessary time and money on costly and attention-diverting litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , the full focus of our efforts will now be on improving the performance of Acela Express and delivering the best service we know how for the passengers who enjoy and depend on it," said Amtrak President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. David L. Gunn
"The Consortium is satisfied with the solution reached out of court with Amtrak," commented Paul Tellier, President and Chief Executive Officer of Bombardier Inc. "The Consortium will respect Amtrak's strategy to provide maintenance services and will take the necessary steps to ensure a seamless transition between now and October 2006," added Mr. Tellier. In November 2001, Bombardier filed a lawsuit against Amtrak in the U.S. District Court for the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). seeking damages in connection with the high-speed rail project. Amtrak then countersued, seeking its own damages in connection with the project. The agreement announced today settles Bombardier's lawsuit and Amtrak's countersuit coun·ter·sue tr.v. coun·ter·sued, coun·ter·su·ing, coun·ter·sues Law To bring proceedings against (a plaintiff) in direct opposition to a suit brought against onself. , and speeds up to October 2006 the transfer of the maintenance responsibility from the Northeast Corridor Maintenance Service Company (or NECMSC) to Amtrak. The transfer was originally foreseen in 2013. Amtrak and NECMSC have committed to work closely together over the next three years to ensure and maximize the trains' operational reliability. "During the transition period, training will be provided to Amtrak employees and after October 2006, NECMSC will continue to provide equipment parts and technical advice to Amtrak's Mechanical department, as needed as needed prn. See prn order. ," explained Mr. Fred Einbinder, Chairman of the Board of NECMSC and General Counsel of ALSTOM Transport. Acela Express is Amtrak's premium service in the Northeast, with 10 daily roundtrips between Boston and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , including intermediate stops, and 13 daily roundtrips between Washington and New York, with intermediate stops. Development of the high-speed service began in 1996, when Amtrak and the Consortium agreed to the design and manufacture of the Acela Express trainsets, the building of maintenance facilities in Boston, New York Boston is a town in Erie County, New York, United States. The population was 7,897 at the 2000 census. The town is named after Boston, Massachusetts. The Town of Boston is an interior town of the county and one of the county's "Southtowns. and Washington, and maintenance of the equipment for a period of ten years. (The 10-year term started in 2003.) The first of the trainsets was delivered in December, 2000 and since its introduction into revenue service, more than 6 million passengers have ridden Acela Express. Note to editors: About Amtrak Amtrak provides intercity passenger rail service in 500 communities in 46 states across a 22,000-mile route system. For schedules and fares, visit Amtrak's website at www.amtrak.com or call 800.USA.RAIL. About Bombardier A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2004, were $21.3 billion Cdn and its shares are traded on the Toronto, Brussels and Frankfurt stock exchanges Frankfurt Stock Exchange The largest of Germany's eight securities exchanges, operated by Deutsche Borse AS. (BBD BBD In currencies, this is the abbreviation for the Barbados Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. , BOM and BBDd.F). News and information are available at www.bombardier.com. About Alstom ALSTOM is a global leader in power generation and rail transport infrastructure. The Company serves the energy market through its activities in the field of power generation and the transport market through its activities in rail and marine. ALSTOM's annual sales are around euros 17 billion. It employs 75,000 people in over 70 countries worldwide. www.alstom.com About NECMSC The Northeast Corridor Maintenance Service Company (NECMSC) is jointly owned and operated by Bombardier and Alstom. It was created to provide maintenance and related services for high-speed trainsets operated by Amtrak. NECMSC conducts servicing activities at three maintenance facilities in Boston, New York and Washington, D.C. NECMSC management team oversees maintenance operations carried out by Amtrak. (i)(i) Acela Express is a trademark of Amtrak |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion