Bombardier Selected By Jersey European Airways As Its Regional Partner for the Future; JEA To Acquire 15 Q Series Turboprop and Canadair Regional Jet Aircraft.

TORONTO--(BUSINESS WIRE)--March 17, 1999--Bombardier Aerospace (TSE:BBD.A.) (ME:BBD.A.) (TSE:BBD.B.) (ME:BBD.B.)

All-Encompassing Deal Covers 37 to 78 Seats

Jersey European Airways of Exeter, U.K. will acquire 15 new Bombardier Aerospace regional airline aircraft in a major transaction involving a mix of three models of the latest Dash 8 Q Series turboprop and the Canadair Regional Jet(R) plus two used Dash 8(R) Series 300 aircraft on lease.

The transaction covers three 37-seat Q200, four 50-seat Q300, four 78-seat Q400 and four 50-seat CRJ Series 200 aircraft. It is valued at approximately $250 million U.S. ($380 million Cdn. or 150 million pounds sterling).

The order makes Jersey European the United Kingdom launch customer for the Q400, and the sixth European airline to order the new-generation airliner.

"This transaction marks a major investment in our regional services and will give us a state-of-the-art fleet with which to enter the new millennium," said Barry Perrott, chief executive of Jersey European Airways. "We are very impressed by the outstanding Noise and Vibration Suppression (NVS) system in the Q Series aircraft. It will provide our passengers with an unprecedented low level of noise and vibration in the cabin." The 350-knot (402 mph) speed of the Q400 was a major factor in its selection by the airline, he said.

With Common Crew Qualification (CCQ) between the Q Series aircraft, Jersey European Airways will reap significant economic benefits by having pilots qualified to fly all three of the models in its fleet with only minimal differences training.

The Q models will replace Fokker F-27 and Shorts SD360 in the Jersey European Airways fleet, while the CRJ aircraft will be additions to the airline's larger jet aircraft. Delivery of all 15 Bombardier Aerospace aircraft will increase Jersey European Airways' fleet by 40 per cent to 33 aircraft, with a similar increase in seating capacity.

"The well-known passenger acceptance of the Canadair Regional Jet makes it ideal for our route system," Mr. Perrott added. "The Canadair Jet will allow us to further develop our longer routes with smaller markets on a very economical basis." The CRJ will also be used on new routes feeding the Air France hub at Paris Charles de Gaulle. Jersey European is a major Air France franchise partner.

Mr. Perrott noted the strong U.K. content in the Bombardier aircraft. The NVS system was developed jointly by Bombardier and Ultra Electronics of Cambridge, while Shorts of Belfast, a unit of Bombardier Aerospace, is a major supplier to the Canadair Regional Jet program. Jersey European carries more passengers to and from Belfast than any other airline.

"We are extremely gratified by Jersey European Airways' confidence in our Q Series turboprops and to add a sixth European customer for our new Q400 aircraft. We look forward to a long partnership in providing safe, reliable, comfortable and economic air transportation for years to come," said John Howarth, vice president, international sales at Bombardier Aerospace, Regional Aircraft.

"This order is a confirmation of our belief that most airline markets have both jet and turboprop requirements and that there is now, and there will be well into the future, a solid market for turboprops. We are proud to add another new operator for our Q200, Q300 and Q400 and CRJ product lines," Mr. Howarth added.

The new Q Series aircraft will be introduced into service with Jersey European Airways beginning in October 1999, with all Q Series aircraft to be delivered by the third quarter of 2001. Canadair Regional Jet deliveries will be completed in early 2001.

Jersey European Airways will acquire its two used Dash 8 Series 300 aircraft in June and July of 1999 to provide interim lift until the new aircraft deliveries are complete.

Jersey European Airways currently serves 17 points in the U.K., Ireland and Channel Islands as well as Paris/Charles de Gaulle, Toulouse and Lyon. In fiscal 1997/1998, turnover increased by 44 per cent to 135 million pounds.

The Jersey European transaction increases the number of firm orders for the Canadair Regional Jet and Dash 8 aircraft to 632 and 572 respectively, maintaining their leadership in both the jet and turboprop segments of the regional airline marketplace.

Bombardier Aerospace, a unit of Bombardier Inc., is the world's third largest civil aircraft manufacturer with operations in three countries. Leading the 20- to 70-passenger regional carrier market, Bombardier Aerospace offers complete families of turboprop and regional jet aircraft. It has the industry's widest range of business jets, offering both full and fractional ownership, and also produces firefighting/maritime mission aircraft. It provides technical services, aircraft maintenance and pilot training to business, regional airline and military customers.

Bombardier Inc. is a Canadian corporation active in the fields of aerospace, rail transportation equipment, recreational products, financial services and services related to its products and core businesses. It operates plants in 11 countries in North America and Europe and more than 88 percent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1998 totalled $8.5 billion.

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Note to the editor: Photos available at www.aero.bombardier.com/htmen/F15.htm