Air Canada buying 45 regional jets from Bombardier, 45 from rival Embraer

[Flightful]

MONTREAL (CP) - Air Canada has signed an agreement to purchase 90 regional jets for $3.6 billion, split between Montreal-based Bombardier and Brazil's Embraer with a possibility for even more orders for both companies.

The order is a nice boost for Bombardier, whose aircraft order book has been shrinking, while confirming Embraer's decision of four years ago to proceed with its larger jet program.

The new aircraft with 50 to 93 seats, to be manufactured by both companies, will be deployed in Canada and on Canada-U.S. routes, partly displacing larger less efficient aircraft.

"The small jet aircraft are fundamental to our emergence as a stronger, more cost-effective airline," said Robert Milton, Air Canada chief executive.

http://money.canoe.ca/News/Other/2003/12/19/292111-cp.html

[SharonAnn]

1. Good strategy. Always have at least two suppliers and order

from both of them to keep them both in business. Let them bid against each other.

[Flightful]

2. That's what they used to do

AC has a long history of making firms compete and often made a point of buying from #2 to keep #1 honest. That's why they're the only major carrier that never flew 707s- they went with DC8s in the 60s, in the 70s they bought from Boeing and Lockheed, since the 80s they alternated between Boeing and Airbus.

[TrogL]

3. Means you need two sets of everything

[unblock]

4. that doesn't seem to bother us jews

:evilgrin: