New aircraft orders helps SAS Group resolve dispute with Bombardier and Goodrich
11 Mar 2008
SAS Group, owner of Scandinavian Airlines, has said it will receive "slightly more" than SEK1 billion ($163.3 million) in cash and credit toward new aircraft purchases in a settlement with Bombardier and Goodrich over the Q400 landing gear incidents last fall, which led the airline to retire its 27 Q400s.
As part of the settlement, SAS has made firm offers for 13 CRJ900 NextGens, worth $474 million, and 14 Q400 NexGens at a cost of $356 million. It has also exercised options for a further 17 CRJ900s and seven Q400s.
Delivery of confirmed offers begin later this year and will continue through 2011.
For Bombardier, the firm orders are worth approximately $883 million which could rise to $1.75 billion if all options are exercised.
The CRJs have been ordered for SAS Scandinavian Airlines and Estonian Airlines while the Q400s will be delivered to subsidiaries Wideroe and airBaltic.
"We are very satisfied with the settlement with Bombardier," SAS president and CEO Mats Jansson said. "The firm order for 27 aircraft will bring a rejuvenated premium product to our customers. The CRJ900 and Q400 NextGen aircraft are well-suited to our operations in Northern Europe."
