Bombardier, DSF sign MoU for 50 firm CRJ aircraft

Bombardier Aerospace and Deutsche Structured Finance (DSF), in association with Deutsche Operating Leasing AG (DOL) signed a Memorandum of Understanding (MoU) at the Paris Air Show for the purchase of 50 Bombardier CRJ regional jets plus 30 optioned aircraft. The definitive purchase contract is expected to be finalised shortly.

The MoU outlines an agreement for the sale of 50 firm aircraft, 30 70-seat Bombardier CRJ700 and 20 86-seat Bombardier CRJ900, plus 30 optioned aircraft. The optioned aircraft allow DOL the flexibility to choose between Bombardier CRJ200, CRJ700 and CR1900 models of the CR1 family of regional jets.

The firm order portion of the contract is valued at approximately $1.5 billion US ($2.25 billion Cdn) with deliveries scheduled to begin in the first quarter of 2003 and be completed in the second quarter of 2009. The option portion of the contract is valued at approximately $1.0 billion US ($1.5 billion Cdn).

DOL was created and launched in 1999 by DSF as a dedicated aircraft operating leasing company to address the growing market requirement for investments by German investors in aircraft leasing. DSF, together with DOL which is managed by DSF, is responsible for an operating lease portfolio currently comprised of 12 Boeing 73 7-300, two Boeing 767-300ER and nine Bombardier CR1 aircraft. DSF and DOL were the first operating lessors to enter the regional jet market with Bombardier aircraft.

"Aircraft operating leasing, especially in the regional jet segment, is a growth industry within a growth industry," said Paul Steunhardt, CEO of DOL and chief managing director of DSF. "The demand for aircraft, particularly in the regional jet market, is expected to continue on its growth path for the next two decades and we believe the Bombardier CR1 family of regional jets will continue to be the premier brand in the industry."

It is expected that DSF will primarily concentrate its regional jet portfolio in the European marketplace.

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