More jets for Comair??

[crjdxr]

Reuters

Canada provides loan to aid Bombardier jet sale

Friday August 6, 6:58 pm ET



VANCOUVER, British Columbia, Aug 6 (Reuters) - The Canadian government said on Friday it will provide a loan to help Delta Air Line Inc.'s (NYSEAL - News) Comair unit by regional jets from Montreal-based Bombardier Inc. (Toronto:BBDb.TO - News).

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Ottawa did not disclose the size or terms of the loan, or how many aircraft would be purchased, but an official said the funding was a loan guarantee that likely involved between C$100 million ($76 million) and C$250 million.

The money is the first loan to come from a C$1.2 billion assistance account Ottawa established last year after its trade fight with Brazil over subsidies of regional aircraft exports by Bombardier and rival Embraer. (Sao Paolo:EMBR4.SA - News).

The special aircraft assistance account was set up with funds from the C$13 billion Canada Account, a lender of last resort for domestic companies that would otherwise lose important deals to foreign competitors.

"The financing of this transaction has been structured in accordance with commercial principles and is in full conformity with Canada's international trade obligations," the International Trade Ministry said in a press release.

According to a posting on the Web site of Export Development Canada, which manages the assistance fund, Comair signed an agreement on July 28 to purchase more than C$100 million in Bombardier aircraft.

Horizon Air Industries and SkyWest Inc. also signed agreements that day to purchase aircraft with the EDC's assistance, but there was no mention of either company in Friday's announcement.

Bombardier officials were not available for comment.

($1-$1.31 Canadian)

http://www.reuters.com/financeQuoteCompanyNewsArticle.jhtml?storyID=5901507&ric=DAL.N&infotype=news&articletype=RTR

 

[Flash 7]

Very Interesting!

 

[standaman]

Yep very interesting.

 

[DoinTime]

$100 million is about what? Five airframes? I imagine that some of Comairs older planes are reaching retirement age. Probably just replacement orders.

 

[V-1]

$100 million is about what? Five airframes? I imagine that some of Comairs older planes are reaching retirement age. Probably just replacement orders.

$100 million Canadian is what, about $75 million U.S.? That's probably three to four airframes, although the article does say more than C$100 million.

Comair's oldest airplane is barely ten years old, and hasn't reached even half it's rated service life, as I recall. I'm not sure it's time to replace it yet.

Interesting news. I agree it may not mean much though.

 

[crjdxr]

Or...

Dork + $10mil = CRJ

If the final amount of the loan is C$250 (about $190mil USD) then that translates into quite a few airframes (assuming the Dork + $$$ theory is correct).

Dork + $10mil = 1 CRJ
30 DoJets + $30mil = 30 CRJ's
Assuming $190mil is the loan amount that still leaves $160mil. That is eight more airframes on top of the 30 in the DoJet + cash deal.

I have no idea what the actual numbers would be but if you combine the loan money with the desire to trade out the DoJets (assuming CMR gets them) then the total number of airframes in this deal can get quite large.

Just a thought...

 

[DoinTime]

Comair's oldest airplane is barely ten years old, and hasn't reached even half it's rated service life, as I recall. I'm not sure it's time to replace it yet.

Anyone know what the service life of a CRJ is? I thought I had read awhile back that the -100/200 airframes were good out to 25,000 cycles. Thats about 10 years of high frequency use. I highly doubt that thing would make 50,000 cycles. Remember this thing was designed as a biz jet that might get flown twice a day, not as an airliner doing 10 legs/day.

Anyone got any info how many cycles an ERJ will go?

 

[General Lee]

Hey, the Canadian Gov't believes in Delta--enough to spot Bombardier a loan for $250 Million Canadian. That's a start!


Bye Bye--General Lee

 

[InclusiveScope]

Hey, the Canadian Gov't believes in Delta--enough to spot Bombardier a loan for $250 Million Canadian. That's a start!


Bye Bye--General Lee

No General, they believe in CMR.

 

[AuburnAviator]

Does this mean Horizon might actually take more airplanes in the next decade???
One would hope if you're a QX pilot