CRJ900X
Topic Author
Posts: 132
Joined: Sun Dec 24, 2006 12:47 am

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.

Cheers,
CRJ900X
 
User avatar
lightsaber
Crew
Posts: 12022
Joined: Wed Jan 19, 2005 10:55 pm

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
"They did not know it was impossible, so they did it!" - Mark Twain
 
CRJ900
Posts: 1976
Joined: Wed Jun 02, 2004 2:48 am

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?
Come, fly the prevailing winds with me
 
queb
Posts: 846
Joined: Tue Jun 01, 2010 3:10 am

RE: BBD "conditionally" Sells 6 CRJ900 NextGen

Thu Nov 03, 2011 3:39 pm

The customer is China Express Airlines  
 
queb
Posts: 846
Joined: Tue Jun 01, 2010 3:10 am

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
Posts: 1976
Joined: Wed Jun 02, 2004 2:48 am

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.
Come, fly the prevailing winds with me

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos