CRJ900X
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BBD "conditionally" Sells 6 CRJ900 NextGen

Fri Oct 28, 2011 1:44 am

Bombardier conditionally has sold 6 CRJ900 NextGen's to an unidentified customer from China. The airline also placed options for an additional 5.

Link: http://www.canadianbusiness.com/arti...rders-six-bombardier-crj900-planes

Is a conditional order based on ensuring that the airline can get funding for the planes? How does it differ from a Letter of Intent?

Any indications on who would be behind the order? Could it be that China Express is up-gauging from their current 5 x CRJ200 fleet?

If the order goes through, this would be great news for the CRJ line and hopefully more operators will join in and order some, especially the CR9 and CRK.

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CRJ900X
 
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lightsaber
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RE: BBD "conditionally" Sells 6 CRJ900 NextGen

Fri Oct 28, 2011 3:38 am

Exciting Bombardier is selling some aircraft.   

Quoting CRJ900X (Thread starter):
Is a conditional order based on ensuring that the airline can get funding for the planes? How does it differ from a Letter of Intent?

A Letter of Intent (LOI) is the weakest form of order commitment. No money changes hands and all that letter does is temporarily hold some production slots until details may be negotiated. LOIs often expire un-confirmed.   Most become orders... But a lower fraction than MOUs.

A Memorandum of Understanding (MOU) is stronger. Often small amounts of money change hands to show good faith and to pay for the planning of production slots, etc. More money is being spent securing the side deals (e.g., a tire MOU, etc.) . Often an MOU is the stepping stone to production allocation, payment negotiations, and customer Board of Director (BOD) approval of the deal. Most, but certainly not all, MOUs are converted to orders.

Conditional orders are the most common type of orders. They already have customer BOD approval. Usually the catch is based on selling old aircraft, financing, or other big hangups. Conditional financing is usually in the form of X% down, interest rate of less than Y% for a term of Z years. The vendor (Bombardier) is allowed to step in and provide the financing to ensure the deal goes through.   Or help by taking part of the financing... etc. There have been aircraft that sit for a few months while the airline and aircraft vendor scramble to secure the financing. Sometimes the vendor has to bend (promise a bank a certain resale value in some number of years).

Lightsaber
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CRJ900
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RE: BBD "conditionally" Sells 6 CRJ900 NextGen

Mon Oct 31, 2011 12:27 pm

I also assume that the deal is pretty much done since BBD has announced it on their website news section...?

Good news, always nice to hear more CRJ900s will grace the skies. Isn't there a Chinese carrier that flies CRJ700, Shandong or something? Could it be them?
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queb
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RE: BBD "conditionally" Sells 6 CRJ900 NextGen

Thu Nov 03, 2011 3:39 pm

The customer is China Express Airlines  
 
queb
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RE: BBD "conditionally" Sells 6 CRJ900 NextGen

Sun Nov 06, 2011 6:25 pm

Estonian Air plans to order five CRJ (probably 900), four will be delivered in 2012.

http://estonian-air.ee/en/service/ne...proved-estonian-airs-new-strategy/
 
CRJ900
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RE: BBD "conditionally" Sells 6 CRJ900 NextGen

Tue Nov 08, 2011 12:07 pm

Quoting queb (Reply 4):
Estonian Air plans to order five CRJ (probably 900), four will be delivered in 2012.

Great news, I think 88 seats is more right-size for Estonian. So that is potentially 16 new aircraft orders for the CRJ900 if China Express converts the options as well.
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