National Business Aviation Association - Bombardier Introduces New-Generation Bombardier Continental Jet - Eight-Passenger Jet to Fly in 2001, Enter Service in 2002

Business Wire, Oct 19, 1998

LAS VEGAS, Nev.--(BUSINESS WIRE)--Oct. 18, 1998--BOMBARDIER (ME:BBD.A.) (TSE:BBD.A.) (ME:BBD.B.) (TSE:BBD.B.) Bombardier chairman and chief executive officer, Laurent Beaudoin, today introduced an all-new transcontinental business jet on the eve of the annual meeting and convention of the National Business Aviation Association (NBAA).

The new aircraft, to be known as the Bombardier Continental Jet, will carry eight passengers and their baggage non-stop across North America at a speed of Mach 0.82 (541 mph), and will enter corporate service with customers in the year 2002.

Stated Mr. Beaudoin: "This new aircraft will be Bombardier's product offering in the emerging and important super midsize business jet segment. It is also the third all-new business jet that Bombardier has introduced in just six years."

"We are designing it to deliver the best value in its class by offering a well-balanced, strong performance in all key buyer decision criteria - including great price.

"The Bombardier Continental Jet establishes a new benchmark against which all competitive aircraft must be measured," Mr. Beaudoin continued.

Bombardier Aerospace is now seeking commitments from prospective customers, heading towards for a formal program launch decision next spring. The program is currently in the advanced design and will begin joint definition early in the first quarter of 1999. First flight is anticipated in the first quarter of 2001. Type certification is expected in mid-2002.

Bombardier forecasts more than 1,000 new-generation super midsize business aircraft by the year 2012, mostly for the U.S. market, and the company aims for a 30 per cent share of the total market.

Mr. Beaudoin made the announcement at the official unveiling ceremony of a full-size mock-up of the sleek aircraft. The occasion was attended by some 300 guests, including Bombardier customers, prospects, aviation press and aviation industry officials. Joining him were Robert Brown, president and chief operating officer, Bombardier Aerospace, and Michael Graff, president, Bombardier Aerospace, Business Aircraft.

The Bombardier Continental Jet is designed to meet the needs of operators in several segments. It is intended to provide a growth platform for light-jet operators, a replacement for aging midsized aircraft, a new offering for the rapidly growing fractional ownership market and an alternative for operators currently constrained by the performance capabilities of their current- generation midsize business jets.

"More than any aircraft Bombardier has previously offered," declared Mr. Graff, "the design of the Bombardier Continental Jet has been driven by customers telling us what they need and want in a new business jet. The aircraft meets those requirements with superior performance in critical areas deemed most important by business jet customers."

These criteria are: true transcontinental range; long-range cruise speed without sacrificing airfield performance; a true eight- passenger cabin; and operating costs either equivalent to or better than the current generation of midsize jets.

Program Participants

As it has with previous aircraft development programs, Bombardier will team with international risk-sharing participants to undertake the design and production of critical components and aircraft systems. The first of these companies is AlliedSignal Inc. of Phoenix, Ariz., which will supply the new AS907 powerplant for the Bombardier Continental Jet.

Bombardier Aerospace has developed a high degree of design expertise in business aircraft ranging from the Learjet 45 light jet, right up to the recently certificated Bombardier Global Express ultra long-range aircraft

Additionally, Bombardier Continental Jet operators will benefit from Bombardier's expertise in designing and building the industry's best regional aircraft, enjoying airliner reliability and maintainability and reduced operating costs.

Additional insight into customer requirements is provided by Bombardier's aircraft charter and fractional ownership programs and through its industry-leading after-sale customer support programs for business aircraft operators.

"By applying the latest technologies in design and manufacturing and committing to the highest standards of quality control, Bombardier Aerospace has an unmatched ability to design, build and support the highest quality products and services. The Bombardier Continental Jet will reach the market with unequaled quality and reliability for a new aircraft," observed Mr. Graff.

Bombardier Aerospace, a unit of Bombardier Inc., is the world's third largest civil aircraft manufacturer with its Canadair and de Havilland operations in Canada, Learjet in the United States and Shorts in the United Kingdom. It has the industry's widest range of business jets, from the light and midsize Learjet(R) series to the widebody Challenger(R) and ultra long-range Global Express(R). Leading the 20- to 70-passenger regional carrier market, Bombardier Aerospace offers complete families of Dash 8(R) turboprop and Canadair Regional Jet(R) aircraft. It also produces the Canadair 415 firefighting/maritime mission aircraft and designs and manufactures airframe components and aircraft engine nacelles.