Potential Value Of $500 Million US If All Options
Bombardier Aerospace has
announced that REGCO Holdings Inc. of Toronto has signed a contract
to acquire ten 70-seat Bombardier Q400 high-speed turboprop
airliners and take options on an additional ten aircraft.
The list price value for the ten aircraft on firm order is
approximately $250 million US. The contract has a potential list
price value of approximately $500 million US if all ten options are
REGCO will publicly announce its plans for the aircraft on
February 2, 2006.
“The Bombardier Q400 has won praise from airlines for its
economics, speed and passenger comfort,” said Robert Deluce,
President and Chief Executive Officer, REGCO. “It fits our
operational plans exceedingly well.”
“We are immensely proud that this new Toronto airline has
chosen this Toronto-built, world-leading aircraft, the Bombardier
Q400,” said Steven Ridolfi, President, Bombardier Regional
“This extraordinary regional aircraft has led a resurgence
in turboprop travel around the world. It has everything –-
jet-like speed, quiet comfort, environmental friendliness, low fuel
burn, and the lowest operating costs of any regional aircraft.
There is no other turboprop that can compete with the Q400 aircraft
in this arena.”
The 360-knot cruise speed and capacity of the Q400 provides
airlines with greater revenue-generating opportunities in both
traditional and low cost markets and extends an airline’s
reach well beyond traditional turboprop markets. The superior
operating economics of the Q400 enable it to compete effectively
against established low cost carriers. The order announced
Wednesday increases Q400 firm orders to 175 aircraft. As of
December 31, 2005, 106 had been delivered to operators in North
America, Asia, Europe and the Middle East.