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USAirways Regional Jet Order Changes

Fri Jul 11, 2003 12:55 am

Bombardier shares dip on U.S. Airways announcement - Financial Post - Canada - 10/7/2003

MONTREAL - Bombardier Inc. shares dipped 3.1% to $5.04 yesterday after U.S. Airways Group said it "would not take delivery" of 25
Bombardier 75-passenger regional jets because of contract problems with its unionized pilots. They were part of last May's
US$2.2-billion order for 85 Bombardier regional jets. US Airways later explained it will still buy the 25 aircraft, but they will be operated
by the independent Mesa Air Group. Bombardier said the 25 would be subleased to Mesa and the total order of 85 is unchanged and
already financed. To meet its contract obligations, Mesa may need up to 35 more Bombardier 75-seaters and these would come from
options attached to last May's firm order. For technical reasons, a parallel order for 85 Embraer 70-seater regional jets is not affected.

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