milehighclub Posted July 10, 2003 Share Posted July 10, 2003 So you thought it could only happen in CAN ? US Airways reduces regional jet order in dispute with pilots The Associated Press 7/9/03 10:20 PM TORONTO (Dow Jones/AP) -- Bombardier Inc. said Wednesday it will still deliver the same number of regional aircraft to US Airways Group Inc., despite the airline's announcement of a cancellation. "As far as we are concerned at Bombardier, the US Airways action (Wednesday) is transparent to our contract, there is no reduction to the order and the contract value remains the same," said John Paul Macdonald, a spokesman for Bombardier Aerospace. Bombardier shares dipped suddenly late Wednesday when US Airways said it wouldn't be taking delivery of the 25 CRJ-705 regional jet aircraft ordered in May. The airline said the cancellation was sparked by its inability to negotiate a deal with its pilots to fly the aircraft. US Airways said that instead, it will contract with Mesa Air Group to fly at least 25, and perhaps as many as 55 70-seat regional jets under the US Airways Express name. Macdonald said the net effect is that US Airways remains a Bombardier customer, but instead of purchasing the 75-seat regional jet, it would purchase 70-seat aircraft and sublease them to Mesa. The total contract value remains $2.4 billion. It includes options for another 190 additional aircraft, bringing the potential value to $7.5 billion. The US Airways headline pushed Bombardier stock down by more than 5 percent initially although shares later recovered some ground. ------ On the Net: http://www.bombardier.com Link to comment Share on other sites More sharing options...
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