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Northwest $2.6 Billion Dollar Deal With Bombardier  
User currently offlineVonRichtofen From Canada, joined Nov 2000, 4644 posts, RR: 34
Posted (14 years 3 weeks 6 days 12 hours ago) and read 1872 times:

Northwest Airlines has made a deal with Bombardier for 75 CRJ's this is good for Canada as it will create about 15oo jobs, however farmers are accusing the federal government of ignoring the farming industry at home favouring big business. Your comments please.....

Bombardier beats out Embraer for $2.6-billion deal with Northwest Airlines
WebPosted Mon Jul 9 19:31:18 2001
MONTREAL - Canada's Bombardier (BBD.b) announced Monday it has landed a $2.6-billion deal to sell 75 of its popular regional jets to Northwest Airlines.

In securing the deal with Northwest, Bombardier beat out one of its main competitors, Embraer SA of Brazil.

International Trade Minister Pierre Pettigrew
Northwest has also taken options and purchase rights on an additional 175 aircraft.

The deal involves a 44-seat variation on Bombardier's 50-seat CRJ200. Northwest has an option to substitute the 50-seat jets instead of the 44-seat model.

"We are delighted to have been successful in this rigorous evaluation," Steven Ridolfi, the president of Bombardier Regional Aircraft, said in a release.

"We value Northwest's business and are very proud of their continued confidence in our company and in our products," he said.

Bombardier is slated to begin delivering the aircraft to Northwest in the third quarter of 2002, extending to 2005.

The aircraft maker said its orderbook, including today order from Northwest, now totals 2,510 – 524 delivered, 651 on firm order backlog and 1,335 conditional orders and options, Michael Graff, the president and chief operating officer of Bombardier Aerospace, said.

In February 1999, Northwest ordered 54 CRJ200 aircraft. Twenty of those aircraft have been delivered with the remaining 34 aircraft to be delivered over the next three years.

Bombardier's main competitor for the Northwest contract was Embraer. The two companies are locked in a long-standing feud over government subsidies.

Embraer is reported to have offered more than $1 billion in low-interest loans to Northwest in a bid to land the contract. Bombardier, in turn, sought money from the Canadian government to help it secure the deal.

Bombardier and Embraer's dispute has gone to the World Trade Organization, which ruled last month that Brazil's financing program, dubbed Pro-ex, is not in violation of international trade rules.

However, the WTO said the program is open to abuse when it comes to the sale of the regional jets. Some new conditions have been attached to the program, but challenges to the program are going to be judged individually.

Canada's International Trade minister Pierre Pettigrew said Monday afternoon that the Canadian government will provide Northwest with a $1.2-billion, 15-year loan at international rates.

"This is a loan," Pettigrew said at an Ottawa press conference in Ottawa. "Bombardier will not get a cheque, will not get a thing." "Northwest has received an offer by the government of Brazil for the sort of financing that we're offering now," Pettigrew said. "Had that not been the case, the government of Canada would not have offered it," he added.

"Both Bombardier and Embraer competed vigorously for this order and both provided Northwest with very favorable offers," Greg May, Northwest's vice president of aircraft transactions, said. "In the end, the Bombardier offer provided better overall value to the company," he said.

"Bombardier has arranged for lease financing to be provided for each of the aircraft on favorable terms," added Dan Matthews, Northwest's senior vice president and treasurer.

Northwest plans on subleasing the aircraft to one or more regional airline carriers, he said.

Written by CBC News Online staff

Source: CBC Newsworld Online


12 replies: All unread, jump to last
User currently offlineCV640 From United States of America, joined Aug 2000, 952 posts, RR: 5
Reply 1, posted (14 years 3 weeks 6 days 10 hours ago) and read 1775 times:

Already discussed the loan but wasn't aware other groups were getting in the act. They are giving out a great interest rate on a loan, so its not like they are giving them money directly. If they hadn't I think NWA would probably have gone ahead and gotten the EMB unfortunately. Lyckily that didn't happen and we got the best regional jet out there.

User currently offlineNWA From United States of America, joined Jun 2001, 1200 posts, RR: 3
Reply 2, posted (14 years 3 weeks 6 days 10 hours ago) and read 1771 times:

Thats good, someday I hope to be a pilot with Northwest, so the more jobs the better.  Wink/being sarcastic

23 victor, turn right heading 210, maintain 3000 till established, cleared ILS runwy 24.
User currently offlineDIA From United States of America, joined Jan 2001, 3273 posts, RR: 25
Reply 3, posted (14 years 3 weeks 6 days 10 hours ago) and read 1770 times:

Is it just me, or does it seem that lately there are many more CRJ orders than ERJ orders?

CRJs seem to be winning all the big contracts.

Ding! You are now free to keep supporting Frontier.
User currently offlineDellatorre From Brazil, joined May 2000, 1091 posts, RR: 2
Reply 4, posted (14 years 3 weeks 6 days 10 hours ago) and read 1770 times:

With all that Canadian Government "legal" subsides no one could be them!!!!!!!!!!!!!!1

God bless the yankessss,,,,,,,,

User currently offlineNicolaki From , joined Dec 1969, posts, RR:
Reply 5, posted (14 years 3 weeks 6 days 9 hours ago) and read 1756 times:

What about Embraer illegal loans? Oh they don't count because they are not suppose to exist, right?


User currently offlineVonRichtofen From Canada, joined Nov 2000, 4644 posts, RR: 34
Reply 6, posted (14 years 3 weeks 6 days 5 hours ago) and read 1744 times:


I'm bored with Airbus vs Boeing wars....
Let's start a Embraer vs Bombardier war!!

Just kidding!!!  Smile/happy/getting dizzy

I don't know a whole lot about either company, how do their products match up with each other? Maybe after determining that, we'll have the reason for why the CRJ seems to be more popular than the ERJ.

User currently offlineHlywdCatft From United States of America, joined Jan 2001, 5321 posts, RR: 6
Reply 7, posted (14 years 3 weeks 6 days 3 hours ago) and read 1721 times:

Is there such thing as a CRJ440??? When the Detroit Free Press announced the large order today, they called the plane the CRJ 440 instead of the CRJ200.

I wouldn't say Bombardier is winning ALL of the huge contracts, there still are a couple "little" contracts for Embraer from a "little" state called texas, but maybe you guys never heard of Continental Express and American Eagle

User currently offlineFlashmeister From United States of America, joined Apr 2000, 2915 posts, RR: 6
Reply 8, posted (14 years 3 weeks 6 days 3 hours ago) and read 1721 times:
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Please get over the subsidy wars...

Every country in the world that has an aircraft manufacturer heavily subsidizes the company. It's big business.

The US does it, EU members do it, Canada does it, and so does Brazil. If they had more money, Ukraine and Russia would do it, too.

User currently offlineDIA From United States of America, joined Jan 2001, 3273 posts, RR: 25
Reply 9, posted (14 years 3 weeks 6 days 3 hours ago) and read 1716 times:


I said recent orders, not overall.

Besides, you should know that Texas is very large state, not "little". They also have two very large airlines, not "little," that ordered ERJs.

Just thought you should know - DIA

Ding! You are now free to keep supporting Frontier.
User currently offlineCo LITE From , joined Dec 1969, posts, RR:
Reply 10, posted (14 years 3 weeks 6 days 3 hours ago) and read 1716 times:

Good to hear Northwest likes Bombardier. After all, the Best Airline deserves the best in regional airplanes.

Just my two cents

User currently offlineA330_DTW From United States of America, joined Sep 2000, 371 posts, RR: 0
Reply 11, posted (14 years 3 weeks 5 days 1 hour ago) and read 1700 times:

Layoffs for employees, but 75 firm orders, an additional 25 after the 75 are delivered and 150 options after that!

And they're crying poor operations are forcing down profits, amounting in losses. Talk of layoffs...

I say order a few less airplanes to be subleased "to carriers not yet chosen" and let the employees keep their jobs!

User currently offlineBryston From Canada, joined Mar 2001, 137 posts, RR: 0
Reply 12, posted (14 years 3 weeks 4 days 19 hours ago) and read 1688 times:

Anyway, I don't think that the money they lent to NW came from the same budget as the money for the farmers. It came from a special fund for helping the internationnal industry and commerce, as Pierre Pettigrew is the international trade minister. Moreover, this money will come back afterward. This is not technically a subside.


I'd rather be flying...
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