Bombardier and Embraer are to supply Air Canada's regional jets, following the airline's signing of memoranda of understanding to split a 90-aircraft order between the two manufacturers. The deal is the first Star Alliance regional order under the alliance's joint evaluation strategy. Under the agreement the carrier will take 15 50-seat Bombardier CRJ200s and 30 74-seat CRJ700 Series 705s from September, and will have options on a further 45 aircraft from the Canadian manufacturer. The Embraer order consists of 45 93-seat Embraer 190s to be delivered from November 2005, with 45 options. A decision on an additional 15 aircraft is yet to be made.

The regional types will be used on Air Canada's North American network. The CRJ200s will be configured in a single-class layout, while the 705s and 190s will have a two-class layout.

The purchase commitments are subject to financing and other terms, including the restructuring of the bankruptcy-protected airline under the Companies' Creditors Arrangement Act. GE Capital Aviation Services has agreed in principle to provide up to $950 million to finance up to 43 aircraft.

Source: Flight International