Bombardier expected to share 'imminent' large jet order from US Airways ALLAN SWIFT Canadian Press Sunday, May 11, 2003 MONTREAL (CP) - Bombardier Aerospace may announce a major order for its regional jets with US Airways as early as this week. Reports say Bombardier, which has had to shed thousands of aerospace jobs due to the downturn in the aviation business, would share an order of as many as 200 regional jets with its only major rival in the market, Embraer of Brazil. Bombardier denies it has planned a news conference for this week, but a spokesman for Embraer, also bidding on the order, said an announcement is "imminent." What is certain is that both manufacturers are in deep discussions with US Airways, which emerged from bankruptcy March 31 and announced it was planning a "significant" regional jet fleet purchase. "There's certainly no secret about that," said Embraer spokesman Doug Oliver, referring to intense negotiations with US Airways. Added Oliver, based in Florida: "We understand an announcement is imminent." John Paul Macdonald, spokesman for Bombardier Aerospace, the world's third-largest civil aircraft manufacturer, said that regarding any major order announcement this week, "right now the answer is no. "We are in discussions with (US Airways) but we don't comment on the nature of these discussions." Amy Kudwa, spokeswoman for US Airways of Arlington, Va., said Friday the airline has plans to expand its regional jet fleet. It currently has 80, supplied both by Montreal-based Bombardier and Embraer. "It has been part of our business plan since we reorganized the company," Kudwa said. "Through the contract we have with our unions we can have up to 465 regional aircraft in our fleet; we currently have about 80. Certainly we will be making an announcement shortly." The new jets will replace mainly turboprop aircraft, used by 10 feeder carriers to US Airways, of which three belong to the mainline carrier. "Our network on the east coast has a lot of small and mid-sized communities that are best served by regional jets," Kudwa said. "It's the right size for the market and they're very popular with our customers." Meanwhile, Bombardier is in tough talks with the union representing some 7,600 aerospace jobs in the Montreal area, where its 50-, 70- and 86-seat Canadair Regional Jets are manufactured. Michel Lauzon, president of the Bombardier local for the International Association of Machinists and Aerospace Workers local, said that the company has been pressing for concessions, using the potential order as leverage. "The union made sensible and valid proposals to help Bombardier Aerospace reduce its costs so it could obtain the contract with US Airways," Lauzon in a statement, but he added that the union will not reopen its collective agreement reached one year ago after three weeks of strikes. The four-year agreement provides the workers with a 13.5 per cent wage increase. Bombardier Aerospace, which employed 29,534 worldwide at the end of January, has since announced plans to lay off 3,000 employees in Montreal, Toronto and Belfast over the year. The battered shares of parent company Bombardier Inc. (TSX:BBD.B) gained six cents Friday to $3.80. They traded as high as $15 during the past year. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.cso.gov.tt TnT Webdirectory: http://search.co.tt *********************************************************