Austrian Airlines Selects Bombardier Q400 to Expand its 70-Seat Markets.

Business Editors

TORONTO--(BUSINESS WIRE)--Dec. 5, 2003

Bombardier Aerospace announced today that Austrian Airlines has ordered two additional Bombardier Q400 turboprop airliners to expand its 70-seat fleet in the highly competitive European marketplace.

The transaction, valued at an estimated $42.2 million U.S. ($55.4 million Cdn.), represents the conversion of two options into a firm order. Deliveries are scheduled for the first and second quarter of 2005. The carrier retains options on two Bombardier Q400 aircraft.

The aircraft will fly under the new Austrian arrows banner operated by Tyrolean Airways, a wholly owned unit of Austrian Airlines Group. The Austrian arrows fleet currently includes eight Bombardier Q400 airliners, 12 Bombardier 50-seat Q300 turboprops, 13 Bombardier 50-seat CRJ 200 regional jets and 6 Fokker 70 jets.

"The Bombardier Q400 is proving to be the ideal airplane with which to grow the Austrian Airlines presence in 70-seat markets," said Johann Messner, managing director, Tyrolean Airways. "Our Bombardier Q400 fleet has achieved an impressive dispatch reliability of 99 per cent and is currently operating at a schedule completion rate of 99.5 per cent. The Bombardier Q400 is also the fastest of all turboprop airliners, with block times on many routes approaching those of a jet while consuming far less fuel. Thus, it is very economical to operate."

"Austrian arrows is one of six airlines to place a follow-on order for the Bombardier Q400, joining Augsburg Airways, Flybe., SAS Commuter, Wideroe and ANA, confirming that the aircraft has demonstrated exceptional profit performance," said Steven A. Ridolfi, president, Bombardier Aerospace, Regional Aircraft.

The Bombardier Q400 order book, including 101 firm orders, as well as options and conditional orders now stands at 193 aircraft. As at October 31st, 2003, 77 Q400 aircraft had been delivered to 11 customers throughout North America, Europe and the Asia/Pacific region.

Bombardier Aerospace, a unit of Bombardier Inc., is a world leader in the design and manufacture of innovative aviation products and provides services for the regional, business and amphibious aircraft markets. It also offers Bombardier Flexjet(i) and Bombardier Skyjet(i) business aircraft programs, technical services, and aircraft maintenance and pilot training for business, regional airline and military customers.

Bombardier Inc., a diversified manufacturing and services company, is a world-leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It also provides financial services and asset management in business areas aligned with its core expertise. Headquartered in Montreal, Canada, the Corporation has a workforce of some 75,000 people and manufacturing facilities in 25 countries throughout the Americas, Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2003 stood at $23.7 billion Cdn. Bombardier shares are traded on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).

(i) Trademarks of Bombardier Inc. or its subsidiaries.