Bombardier to Introduce Flexjet Fractional Ownership in Europe.

PARIS--(BUSINESS WIRE)--June 15, 1999--

Bombardier Aerospace today announced the introduction of its Flexjet(R) fractional ownership program in Europe. In its first phase, Bombardier Aerospace has already started service on the European Continent, providing lift for several North American owners.

The second phase will feature the creation of a dedicated European sales organization that will offer a program tailored to meet the specific travel requirements of business leaders, with a pricing structure that is predictable, affordable and simple.

In preparation for this launch, Bombardier designed a fractional ownership model for Europe following consultation with business leaders and in view of European regulatory, cultural and operating environments. "We have progressed in a very methodical and thorough fashion to ensure that our program is well suited to the evolving needs of European business leaders," said Michael Graff, president and chief operating officer, Bombardier Aerospace.

The European operations will be based in Copenhagen, Denmark, co-located with ExecuJet(R) Scandinavia, which offers full service and maintenance of all Bombardier business aircraft. Sales and administration for Flexjet and Bombardier Aerospace will be combined under one roof and based in London, UK. The European arm of Flexjet Europe will be led by Flexjet veteran Mark Self, who has been appointed managing director.

The Flexjet program will be supported in Europe by 80 Bombardier employees providing supplies and maintenance at five locations.

Bombardier's Flexjet builds, flies and maintains its own aircraft. Flexjet has been operating in North America since 1995 and has grown at a rate of 55 per cent per year over the last three years. The Flexjet fleet now includes over 65 aircraft.

"Flexjet offers enough variety in aircraft models and share plans to suit every size and type of business," said Dennis Keith, president, Bombardier Business JetSolutions. "We look forward to working with European businesses and providing them with the many benefits of fractional ownership through the Flexjet program, which allows the versatility to select our many different models to suit their evolving needs."

Flexjet's European fleet will include the Learjet(R) 31A, Learjet 60 and Challenger(R) aircraft, which is capable of flying non-stop from London to New York in seven hours, 41 minutes. Owners may purchase shares in these jets ranging from 1/16 (50 hours per year) to 1/2 (400 hours per year), depending on their usage patterns and business travel needs.

"Bombardier has sold business jets and commercial airliners throughout Europe for many years," observed Mr. Self, one of three original founders of Flexjet in North America. "Introducing the Flexjet program here extends our commitment to offering our quality aircraft to the European business community in a new form that makes good sense from the standpoints of finance and productivity."

The extension of the Flexjet program to Europe is part of an ongoing expansion of Bombardier's overall activities on the continent. The company currently has operations in seven European countries and the UK in aerospace, transportation, recreational products and financial services. More than a quarter of its revenues are now generated in Europe, where it employs more than 18,000 people.

There are three main components to Flexjet pricing:

-- An initial deposit that will be fully refunded should the owner

decide to exit the program any time after 24 months. Deposits

range from $94,532 US for 1/16 of a Learjet 31A to $2,585,000 for

1/2 of a Challenger.

-- A fixed monthly management fee that covers the asset cost and

operational expenses such as the flight crew, aircraft

maintenance and insurance. Monthly management fees range from

$11,124 for 1/16 of a Learjet 31A to $211,064 for 1/2 of a

Challenger.

-- A variable rate charged per occupied hour, covering the cost of

fuel and other flight-related expenses. Hourly rates range from

$1,894 for the Learjet 31A to $3,588 for the Challenger.

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 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 January 31, 1999 totalled $11.5 billion (Cdn).

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