Bombardier Sells 17 Additional Q400 Airliners to U.K.'s FlyBE.

Business Editors

TORONTO, Ontario--(BUSINESS WIRE)--April 23, 2003

Bombardier Aerospace and U.K-based FlyBE. (formerly British European) today have agreed to a contract for the purchase of advanced Bombardier Q400(i) regional airliners.

The agreement includes 17 firm orders for Bombardier Q400 aircraft valued at $362 million U.S. ($543 million Cdn.) and a further 20 options. Deliveries of the 78-seat aircraft are scheduled to begin in the second quarter of 2003. The total value of the contract, if the 20 options are exercised, could reach $818 million U.S. ($1.23 billion Cdn.).

Addition of the 17 Bombardier Q400 aircraft will increase FlyBE.'s Q400 fleet to 21 aircraft. The airline also operates 15 BAe 146 jets.

"The Bombardier Q400 delivers fantastically low operating costs, which is critical to our regional low fares business model. The Q400 is set to become the workhorse of the regional low fares market and we are very pleased to be the leading exponent of the product," said Jim French, managing director of FlyBE. "We announced last year our intention to streamline our fleet to two aircraft types. With the announcement today to standardize on the Bombardier Q400, we will drive millions of dollars in operating cost savings, and help consolidate our position as Europe's No. 1 regional low fares provider."

Mr. French added, "The jet performance of the Bombardier Q400 is a major selling point, together with its exceptionally quiet cabin comfort. Passenger reaction has been extremely positive."

"We are delighted that FlyBE. has come back for a second order for 17 Bombardier Q400 aircraft," said Steven A. Ridolfi, president, Bombardier Aerospace, Regional Aircraft. "Airlines in today's environment need to generate significant cost improvements. The Bombardier Q400 is the most efficient and cost effective regional aircraft available. As Mr. French has indicated, the added benefit of jet-like cruise speeds and excellent reliability makes it an unbeatable choice."

Formed 25 years ago as Jersey European Airways, FlyBE. this summer will fly to 46 domestic and international routes, including 12 routes from its new hub at Southampton Airport in central southern UK.

FlyBE. sister company, British European Aviation Services, is the only Bombardier recognized Q(i)Series/Dash 8(i) maintenance facility in Europe. The company performs "C" checks and other heavy maintenance at its facility at Exeter International Airport in southwest England.

The Bombardier Q400 order book, including options and conditional orders, totals 189 aircraft with 71 delivered and in operation as of Feb. 28 with eleven 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.

Note to Editors: Images of FlyBE. Q400 aircraft are available in our Web site multimedia library at: www.aero.bombardier.com/htmen/F14.jsp