Bombardier signs SkyWest Airlines for 30 CRJ700 regional
jets
The deal is worth $1.2
billion (Cdn)--good news for a company that has had to deal with
its share of "not-so-good" news, of late. SkyWest Airlines of St.
George, Utah has placed a firm order for 30 70-seat Bombardier
CRJ700 regional jets for the airline’s United Express
operation on behalf of United Airlines. SkyWest also took options
on an additional 80 Bombardier CRJ700 aircraft.
Value of the firm order is approximately $862 million U.S. ($1.2
billion in Cdn dollars). Exercise of the 80 options by SkyWest
could boost the potential value of the transaction to approximately
$3.35 billion U.S. ($4.6 billion Cdn.). Deliveries of the
firm-ordered aircraft are scheduled to begin early in 2004 and
continue through 2005.
SkyWest is one of the
original launch customers for the Bombardier CRJ and has placed
firm orders for 100 of the 50-seat aircraft.
SkyWest and United recently signed a Memorandum of Understanding
(MOU) for an 11-year contract under which SkyWest will
significantly expand its United Express services. On September
10th, 2003, the MOU was converted to a definitive agreement with
the approval of the SkyWest Board of Directors, United Airlines,
and the U.S. Bankruptcy Court. SkyWest was the first regional
airline to sign a MOU for growth aircraft with United, and SkyWest
is now the first regional airline to complete a court-approved
agreement.
Currently, SkyWest operates 675 daily flights to 66 cities for
United out of hubs in Denver, Colorado; Los Angeles and San
Francisco, California; Portland, Oregon; and Seattle, Washington.
The new contract with United will provide SkyWest with new
opportunities at United’s Chicago, Illinois hub as well as
expanded service in the Denver market.
“The 50-seat Bombardier CRJ has been the driving force
behind our growth over the past decade and we are confident that
the 70-seat Bombardier CRJ700 will help us continue that
growth,” said Jerry C. Atkin, chairman, president and CEO of
SkyWest Airlines. “The Bombardier CRJ700 aircraft’s
exceptional seat-mile costs and its family commonality with the
50-seat CRJ will help us maintain our low cost structure while
providing more efficient jet services to United
Airlines.”
“This order is evidence that the CRJ revolution is
continuing and that the Bombardier CRJ has become an indispensable
tool in the arsenal for many airlines,” said Steven A.
Ridolfi, president of Bombardier Aerospace, Regional Aircraft.
“The Bombardier CRJ family delivers unbeatable economics in
the 50/70/90-seat segment and continues to change the way the world
flies.”
“Bombardier Aerospace was first to the market with 70- and
90-seat regional jets and as at July 31st, there were already 112
CRJ700/CRJ900 aircraft in revenue service with nine operators
around the world,” Mr. Ridolfi added.
As of July 31st, 2003, firm orders for the Bombardier CRJ family
stood at 1,261.
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