ALAN DRON
Previous experience with Bombardier persuaded a German aircraft lessor yesterday to place a further contract potentially worth $2.5 billion with the Canadian manufacturer.
Explaining the choice that Deutsche Structured Finance (DSF) had to make between Bombardier and Embraer to supply a major regional jet order, DSF chief managing director Paul Steinhardt said a previous order for nine Bombardier CRJs had been a significant factor.
"It was like choosing between staying with your wife or going with your girlfriend... and we've always had a very good relationship with Bombardier," said Steinhardt.
Other factors included Bombardier's larger customer base, the flexibility its CRJ product range offered between 50-, 70- and 90-seater variants and its earlier availability, says Steinhardt.
The deal combines firm orders for 50 CRJs - 30 of the 70-seat CRJ700s and 20 of the 86-seat CRJ900s - and 30 options for any mix of CRJ200s, CRJ700s and CRJ900s.
The firm part of the order is worth $1.5 billion and the options, approximately $1 billion. Deliveries are scheduled to start in the first quarter of 2003 and continue to the second quarter of 2009.
The aircraft will be let through DSF¹s leasing organisation, Deutsche Operating Leasing (DOL). Apart from its existing CRJs, DOL's portfolio consists of 12 Boeing 737-300s and two Boeing 767-300ERs. Most of its assets are placed with European carriers and Steinhardt expects most of the new CRJs to go into the same market. The current CRJs are with Germany's Eurowings (two) and France's Air Littoral (seven).
Yesterday's announcement was for a letter of intent, but Steinhardt says he expects the contract to be finalised "within the next couple of weeks". "It's the first major contract Bombardier is closing with an operating lessor, so the contract looks a little different from a contract with an airline."
There is some flexibility in the timing of the number of CRJs DOL takes each year.
Source: Flight Daily News
