inflightboi175
Well-known member
- Joined
- Feb 17, 2009
- Posts
- 151
http://www.reuters.com/article/idUSN1020975920091210?type=marketsNews
* Says Bombardier planes cheaper to buy, burn less fuel
* Company to likely make a decision on planes in Q1 2010
TORONTO, Dec 10 (Reuters) - Republic Airways Holdings (RJET.O) said it is evaluating Bombardier Inc's (BBDb.TO) new C-Series regional aircraft as it looks to fleet replacement at its low-cost Frontier Airlines subsidiary.
Some 48 of 51 Airbus aircraft in Frontier's fleet are either owned or on leases that expire from 2013 to 2017, Hal Cooper, Republic's chief financial officer, said at a conference on Wednesday.
Republic closed the acquisition of the Denver-based regional carrier on Oct. 1 after Frontier emerged from Chapter 11 bankruptcy protection.[ID:nN01269456]
"We are spending a lot of time with aircraft manufacturers trying to understand exactly what our refleeting options are," Cooper said, adding that they are also in talks with Airbus (EAD.PA) and Boeing (BA.N).
He said those two company's are offering lower operating costs for future deliveries and that their products would create long-term opportunities for any potential consolidation in the industry.
However, he called the new 100-to-149-seat narrow-body Bombardier C-Series aircraft, due to come into service in 2013, "a pretty interesting opportunity."
Bombardier is "really marketing a 15 percent or higher lower fuel burn, lower acquisition cost, better operating cost, better mission capability and a higher degree of passenger comfort. That's a very interesting airplane to us."
"Unlike Airbus and unlike Boeing, we believe we can tap into some very attractive export financing through the EDC there," he said, referring to Export Development Canada, a government agency.
The company will likely make its decision on which airliners to go with in the first quarter of next year, he added.
Republic Chief Executive Brian Bedford said the company has purchasing commitments for four Airbus A320's in 2011 and another four in 2012, that it inherited when it bought Frontier.
He stressed that they were just commitments, not obligations, and that Republic has the right to walk away from that contract with no cash damages.
Shares of Montreal-based Bombardier ended up 1.6 percent at C$4.58 on the Toronto Stock Exchange on Thursday. Shares of Republic were down 1.8 percent at $7.28 on the Nasdaq.
($1=$1.05 Canadian) (Reporting by John McCrank; Editing by Frank McGurty)
* Says Bombardier planes cheaper to buy, burn less fuel
* Company to likely make a decision on planes in Q1 2010
TORONTO, Dec 10 (Reuters) - Republic Airways Holdings (RJET.O) said it is evaluating Bombardier Inc's (BBDb.TO) new C-Series regional aircraft as it looks to fleet replacement at its low-cost Frontier Airlines subsidiary.
Some 48 of 51 Airbus aircraft in Frontier's fleet are either owned or on leases that expire from 2013 to 2017, Hal Cooper, Republic's chief financial officer, said at a conference on Wednesday.
Republic closed the acquisition of the Denver-based regional carrier on Oct. 1 after Frontier emerged from Chapter 11 bankruptcy protection.[ID:nN01269456]
"We are spending a lot of time with aircraft manufacturers trying to understand exactly what our refleeting options are," Cooper said, adding that they are also in talks with Airbus (EAD.PA) and Boeing (BA.N).
He said those two company's are offering lower operating costs for future deliveries and that their products would create long-term opportunities for any potential consolidation in the industry.
However, he called the new 100-to-149-seat narrow-body Bombardier C-Series aircraft, due to come into service in 2013, "a pretty interesting opportunity."
Bombardier is "really marketing a 15 percent or higher lower fuel burn, lower acquisition cost, better operating cost, better mission capability and a higher degree of passenger comfort. That's a very interesting airplane to us."
"Unlike Airbus and unlike Boeing, we believe we can tap into some very attractive export financing through the EDC there," he said, referring to Export Development Canada, a government agency.
The company will likely make its decision on which airliners to go with in the first quarter of next year, he added.
Republic Chief Executive Brian Bedford said the company has purchasing commitments for four Airbus A320's in 2011 and another four in 2012, that it inherited when it bought Frontier.
He stressed that they were just commitments, not obligations, and that Republic has the right to walk away from that contract with no cash damages.
Shares of Montreal-based Bombardier ended up 1.6 percent at C$4.58 on the Toronto Stock Exchange on Thursday. Shares of Republic were down 1.8 percent at $7.28 on the Nasdaq.
($1=$1.05 Canadian) (Reporting by John McCrank; Editing by Frank McGurty)
