Bombardier Signs With Delta Carriers for Up to 500 CRJ Jets : 94 Firm Orders Valued At $2 Billion US, Plus 406 Additional Options.

Business Editors

TORONTO--(BUSINESS WIRE)--March 29, 2000

Bombardier Aerospace today announced that it has signed with Delta Connection, Inc. carriers Comair and Atlantic Southeast Airlines letters of intent, which are subject to a definitive agreement expected to be finalized within the next few months. These letters of intent provide for 94 firm orders for CRJ200* Series and CRJ700* Series regional jets in a transaction valued in excess of $2 billion US ($2.92 billion Cdn) - the largest regional aircraft order in history. This transaction also includes options for an additional 406 CRJ* aircraft.

Comair of Cincinnati, Ohio, and Atlantic Southeast Airlines (ASA) of Atlanta, Georgia, wholly owned subsidiaries of Delta Air Lines, will accept delivery of the 94 firm aircraft between the first quarter of 2001 and the end of 2004. The new order includes 25 70-seat CRJ700 aircraft and 69 CRJ200 aircraft with a mix of 40, 44 and 50 seats. The airlines' 406 options, once exercised, will be for a mix of CRJ200 Series and CRJ700 Series aircraft with delivery dates stretching out to 2010.

Once this agreement has been finalized, ASA and Comair combined will have firm orders for 281 Bombardier CRJ aircraft, 125 of which have been delivered.

"This order will allow fulfillment of long-term fleet growth plans at ASA and Comair," said David Siebenburgen, president and chief executive officer of Delta Connection, Inc., the wholly owned subsidiary of Delta Air Lines that manages the Delta Connection network.

"Delta's strategy is to develop regional jets as a component of the airline's efficient network and Delta intends to maintain leadership in this important segment of air service," he said. "CRJ aircraft allow Delta Connection carriers to provide service to customers in smaller markets - markets that are likely to develop into big jet markets. CRJ aircraft also provide a more convenient schedule for the business traveler by allowing more frequencies during the day, which larger jets could not profitably accommodate."

Michael Graff, president and chief operating officer of Bombardier Aerospace, said, "We are proud of our long-standing association with Delta carriers ASA and Comair, who launched and pioneered the development of this market segment and firmly established the CRJ in North America.

"Bombardier has always said that we would work with our customers to address their market needs. With Delta and with the help of our suppliers and partners, we have created a solution that allows the airline to capture all the benefits and flexibility of a common jet family. This solution allows Delta to operate a mix of CRJ aircraft with 40, 44, 50 and 70 seats," he said.

Steven Ridolfi, president of Bombardier Aerospace, Regional Aircraft added, "The size of this order clearly indicates that we have met the small jet challenge and have provided a superior market proposition with a product that offers optimal economics, full commonality and the flexibility to adapt to market needs.

"This transaction not only builds on the excellent relationship between Delta, its carriers and Bombardier but it also sets the framework for a long-term relationship. This order confirms that Bombardier has listened and is fully committed to providing the full product requirements for the regional aircraft market," said Mr. Ridolfi.

With today's announcement, Bombardier's firm orderbook for the CRJ100/200 will total 702 aircraft including 381 deliveries and a backlog of 321 units. Conditional orders and options will further raise CRJ100/200 commitments by 443 aircraft for an overall total of 1,145 units.

Firm orders for the CRJ700 total 129 aircraft, all on backlog. Conditional orders and options further raise CRJ700 commitments by 262 aircraft for an overall CRJ700 total of 391 units.

Therefore, the entire CRJ family firm orderbook totals 831 aircraft with a backlog of 450 units. Further conditional orders and options raise commitments by 705 for a family total of 1,536, making the CRJ the most successful regional aircraft ever.

On the strength of other recent orders and subject to finalization of this agreement, plans are being made to increase the CRJ100/200 production rate from 9.5 to 12.5 aircraft per month beginning in the fall of 2001. This will result in 135 CRJ aircraft in the fiscal year 2001-2002 and 150 in the fiscal year 2002-2003.

Bombardier Aerospace, a unit of Bombardier Inc., is the world's leading business, regional and amphibious aircraft manufacturer with operations in three countries. It offers complete families of 20- to 90-seat turboprop and regional jet aircraft, the widest range of business jets and the Flexjet fractional ownership program. It also provides technical services, aircraft maintenance and pilot training to business, regional airline and military customers.

Bombardier Inc., a diversified manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, passenger rail transportation equipment and motorized recreational products. It is also a provider of financial services and asset management. The Corporation employs 56,000 people in 12 countries in North America, Europe and Asia, and more than 90 per cent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended Jan. 31, 2000, totalled $13.6 billion Cdn.

* Trademarks of Bombardier Inc. Note to editors:

Images of Bombardier aircraft in Delta livery are available at www.aero.bombardier.com/htmen/F7.htm and /F16.htm