IN THIS ISSUE - Bombardier

CANADAIR REGIONAL JETSERIES 700 CABINTo date, the Canadair RegionalJet Series 700 has existed inengineering drawings, threedimensionalviews and artist’simpressions. Now, however, airlinescan see a complete,advanced-technology cabinmock-up with 70 leather seats atthe Bombardier Aerospace facilityat Montreal InternationalAirport - Dorval.Designed-in flexibility of themock-up will allow customers toanalyze various galley, lavatoryand wardrobe locations todetermine the optimum cabinMOCK-UP OPENEDconfiguration for their particularairline operations long before theaircraft enters service.The mock-up emphasizesmaximum passenger comfort andconvenience. Compared to thecurrent Series 100 and 200aircraft, the windows have beenraised 4.5 inches (11.4 cm), thefloor has been lowered one inch(2.54 cm) and ceiling height hasbeen increased by .50 inches(1.27 cm), resulting in a full sixfeet, three inches (1.90 m) ofstandup headroom. The lowerfloor, raised windows and alowering of the seat referenceheight by one inch (2.54 cm)effectively raise the windows by6.5 inches (16.5 cm) relative toeye vision, resulting in superiorcabin lighting and exteriorviewing. The interior lighting hasbeen designed to provide a warmand relaxing ambiance.An underfloor baggagecompartment measuring 109cubic feet (3.09 m 3 ) has beenadded to facilitate last-minuteramp check-in baggage. Overallchecked, wardrobe, overhead andunderseat baggage space is agenerous 12 cubic feet (.33 m 3 )per passenger. More carry-onbaggage stowage space is theresult of the overhead baggagebins being contoured andpositioned to provide superiorclearance for both seated andstanding passengers.Width of the flat-floorcabin is eight feet, five inches(2.5 m) with comfortable twoby-twoseating at 31-inch (78.7cm) pitch, separated by acentre aisle.R EGIONAL UPDATE • PAGE 4

CANADAIR REGIONAL JETPRODUCTION INCREASESTO MEET DEMANDProduction of the CanadairRegional Jet will increase tosix per month from five early in1998 because of continuingstrong demand for the aircraftfrom airlines around the world.The increase will result in a productionrate of 68 units in 1998and 72 units in 1999.The Canadair Regional Jet hasbeen selling in record-settingnumbers, with firm orders for103 aircraft being placed sinceJanuary 1, 1997. Firm orders forthe aircraft now total 301, with193 in service with 16 airlines aswell as government andcorporate customers. Operatorshave options or conditionalorders for an additional 253 CRJaircraft, for a potential total of554 CRJ Series 100, 200 and 700aircraft as of November 1, 1997.The CRJ has clearly staked amajor claim in the air transportindustry, becoming the airliner ofchoice in the regional jet sectorand the standard by which allother regional jetliners will bejudged.Its growing number ofoperators have recognized theunique capabilities of thisrevolutionary jetliner by utilizingthe aircraft on routes that areunprofitable for larger jets,extending regional routes onpoint-to-point services andincreasing the operational radiusfrom hub airports. (Averagesector distance for the CanadairRegional Jet in service is about481 sm [775 km].) At the sametime, the Canadair Regional Jetenables airlines to be moreflexible in meeting capacitydemands, enhance theirprofitability and improve thequality of service to passengers.MORE DASH 8 AIRCRAFT FORGREAT CHINA AIRLINESTaiwan’s Great China Airlineshas ordered two morede Havilland Dash 8Q aircraft,the only transport the carrier hasoperated since its inception in1989. The Dash 8Q Series 300aircraft will replace two earliermodelSeries 300s by the end of1997.“Our success with thede Havilland Dash 8 stretchesThe company attributes its success to the de Havilland turboprop familyback to the airline’s beginnings,”said Peter Szu, Chairman ofGreat China Airlines. “With theinclusion of the new Dash 8Qversion of the aircraft to ourfleet, we will provide ourpassengers with quieter, jet-likecomfortable service.”He was referring to the new Qinterior for the Dash 8 family. Itsunique Noise and VibrationSuppression (NVS) system givesthe cabin the quietest and mostvibration-free environment ofany turboprop airliner andproduces an almost jet-like ridein the Dash 8Q cabin.Great China began domesticservice in Taiwan with two 40-seat Dash 8 Series 100 aircraft.As demand for domestic airlineservice grew, Great China beganreplacing its Series 100s with 50-seat Series 300 aircraft. Futuregrowth will be met with the new70-seat de Havilland Dash 8QSeries 400. Great China is theAsian launch customer for theSeries 400 with a firm order forsix aircraft. In all, Great Chinahas ordered 24 Dash 8 aircraftsince 1989.R EGIONAL UPDATE • PAGE 5

MAERSK SELECTSCANADAIR REGIONAL JETFOR BRITISH AIRWAYSCODE-SHAREThe Canadair Regional Jet willmake its first appearance inBritish Airways livery in the secondquarter of 1998. Maersk Airof Birmingham, a BritishAirways franchisee, has placed afirm order for three CRJ Series200LR aircraft plus 12 options.Maersk Air’s optioned aircraftare convertible between the 50-passenger Series 200 and 70-passenger Series 700 models toprovide the airline with greaterflexibility in its future fleetplanning. The CRJ will replacethe carrier’s older BAC 1-11transports and allow Maersk Airto increase flights on its existingnetwork and launch new routes.Maersk Air, owned by MaerskAir A/S of Denmark, has been aIRELANDBelfastBirminghamU.K.NewcastleBritish Airways code-sharingfranchisee since 1993. Thecarrier operates 242 flights aweek serving Birmingham,Belfast and Newcastle in theU.K., and Amsterdam, Berlin,Copenhagen, Lyons, Milan andStuttgart. The airline carriedAmsterdamCopenhagenBerlinGERMANY450,000 passengers in 1996 andexpects to carry 550,000passengers in 1997.“Addition of the CanadairRegional Jet, the world’s quietestairliner, will help make MaerskAir the most modern andenvironmentally-sensitive airlinein the U.K.,” said GertKristensen, Managing Director.“The CRJ will be good for ourcustomers and good for ourneighbors.”FRANCELyonsMilanStuttgartITALYR EGIONAL UPDATE • PAGE 6

CANADAIR REGIONAL JET CONTINUESAS THE FIRST CHOICE IN THE U.S.Midway Airlines selects CRJ to fill capacity gap and meet “demanding” needs of its passengersMidway Airlines Corporationhas selected the CanadairRegional Jet, the sixth U.S.regional carrier to choose the revolutionary50-passenger twinjettransport. Midway has placed afirm order for 10 CRJ Series200ER aircraft from BombardierRegional Aircraft and has takenoptions on an additional 20.Deliveries of the firm-orderedaircraft will take place betweenNovember, 1997 and December,1998.The Canadair Regional Jetfilled all of Midway’srequirements, said RobertFerguson, President and CEO.“We have been looking for a jetaircraft to fill a capacity gapbeneath our 98-seat jets andsmaller turboprops operated byour regional airline associates.Bombardier and the CanadairRegional Jet meet our needs forcapacity, availability, crewtraining, aircraft performancethe known quality of after-salessupport, operating costs andpurchase price,” Mr. Ferguson said.Midway plans to use itsCanadair Regional Jet aircraft toincrease frequency on existingroutes and expand into newmarkets. Midway’s current routesystem spans the EasternSeaboard of the U.S., reaching toBoston, Massachusetts to thenorth and Fort Lauderdale,Florida to the south. InSeptember, 1997, the carrieroperated 72 jet departures dailyand carried about 155,000passengers a month.“We are positive that theCanadair Regional Jet will meetthe needs of our demandingbusiness clientele. Its quiet,comfortable cabin with full standupheadroom and two-by-two allleatherseating are in keepingwith Midway’s standard,” Mr.Ferguson said. “We believe it isthe ideal aircraft with which tobuild on the success we haveachieved at Raleigh-Durham.”TYROLEAN AIRWAYSTO GET MOREDASH 8, CANADAIRREGIONAL JETAIRCRAFTPassenger reaction to itsde Havilland Dash 8Q Series300 aircraft has prompted TyroleanAirways to accelerate the replacementof its older Dash 8-300models. The Innsbruck, Austriabasedregional carrier has placed afirm order for three 50-seatDash 8Q Series 300, as well as oneCanadair Regional Jet Series 200BLR aircraft.“Our first three very quietDash 8Q Series 300 aircraft have drawn much praise from ourpassengers,” said Fritz A. Feitl, President and CEO of Tyrolean Airways.“The Dash 8Q Series 300 has been an outstanding success for us, so weare accelerating our Dash 8 fleet replacement program.” The almost jetlikecabin environment of the “Q” models of the Dash 8 is provided bythe industry-leading Noise and Vibration Suppression (NVS) system.Deliveries of the four aircraft will be completed by the end of 1997.Tyrolean’s new CanadairRegional Jet, the eighth CRJin the Tyrolean fleet, willhelp the airline meetexpected traffic growth overits 36-destination routenetwork. The airline expectsto carry 1.52 millionpassengers in 1997, up from1.43 million in 1996.Said John Howarth, Vicepresident,InternationalSales at Bombardier Regional Aircraft, “Tyrolean Airways has smoothlyand successfully integrated its Canadair Regional Jet operations withthose of its Dash 8 aircraft to offer its passengers first-rate comfort,seamless service, cabin amenities and sound environmental operations.With the addition of the new Dash 8Q Series 400 into its fleet in 1999,Tyrolean will have a genuine family of aircraft with all of the economicbenefits of commonality.”R EGIONAL UPDATE • PAGE 7

MEETING THECHALLENGES OFGROWTHBy the end of 1997,Bombardier RegionalAircraft’s Airline Services groupwill have responsibility for thelife-cycle support of about 700de Havilland Dash 8 and CanadairRegional Jet aircraft. This numberis expected to double by2001, as Bombardier increases itsmarket share, the productsoffered and its number of customers.Combined with this totalis as many as 900 out-of-productionaircraft.“Managing this significantgrowth is and will be a majorchallenge for us,” said Paul H.Francoeur, Vice-president andGeneral Manager, AirlineServices. “To meet thatchallenge, we are moving from areactive to a proactive approachso that we can reasonablyanticipate changes that mightoccur downstream and have theprocesses and support plans inplace to fix them before they cannegatively affect our customers orbecome a fleet-wide problem.”He added, “Today our servicesand how we deliver them are asimportant as aircraft price,performance, financing and allthe other factors underlying thecustomer’s choice of aircraft. Andcustomers have proven they willbuy from the manufacturer whodelivers the best service.”Key players in this approachare the Field ServiceRepresentatives (FSRs) who dealwith Dash 8 and CRJ operatorson a day-to-day basis. While thetraditional role of the FSR willnot change, he or she will now bethe direct link between theoperators and BombardierRegional Aircraft managementthrough Mike McMillan, the newDirector - Field Services. Mr.McMillan’s mandate also coversMaintenance and OperationServices and out-of-productionaircraft.Airline Services has alsostrengthened its focus onensuring that BombardierRegional Aircraft’s contractualsupport commitments areproperly identified and deliveredto the customers on both new andexisting programs. ServiceReadiness, under the directorshipof Pierre Gagnon, has regroupedinto three functions: airlinesupport, Canadair Regional JetSeries 700 Airline Servicesdeliverables and de HavillandDash 8Q Series 400 AirlineServices deliverables.“Our road to success can besummarized in four steps orobjectives,” said Mr. Francoeur.“Every function in AirlineServices will be transformed intoa business unit; we are going toadd techniques and processes thatwill increase our analyticalcapability; we will aggressivelypursue new technology; and, wewill benchmark ourselves againstother service organizations — notjust those in the aircraft industry— and take the best they have tooffer.”DE HAVILLAND DASH 8 FACTS AND FIGURESSALES (NOV 1, 1997) DELIVERED BACKLOG TOTALSeries 100 296 1 297Series 200 52 26 78Series 300 124 7 131Series 400 0 16 16Program total 472 50 522OPERATING FACTS…Dash 8 Fleet StatisticsAverage stage length 161 nm May 1997Average annual utilization 2,373 flight hours December 1996Highest annual utilization 3,042 flight hours December 1996Fleet total time 6,424,949 flight hours July 31 1997Fleet total cycles 7,805,723 flight cycles July 1997Dispatch Reliability Rate 99.1%-October-December 1996Schedule Completion Rate 99.3%-October-December 1996CANADAIR REGIONAL JET FACTS AND FIGURESSALES (NOV 1, 1997) DELIVERED BACKLOG TOTAL193 108 301OPERATING FACTS...Canadair Regional Jet Fleet StatisticsAircraft in service 171 August 31, 1997Average sector distance1.1 hrs.Average annual utilization 2,386 flight hours Annual up to June 1997Average cycles 2,170 flight hours Annual up to June 1997Total fleet hours 828,724 flight hours To August 31, 1997Total fleet cycles 801,439 flight cycles To August 31, 1997Dispatch Reliability 99.1% August 1997Schedule Completion Rate 99.5% August 1997Utilization based on schedule dataWe make aircraft. We build business.REGIONAL UPDATE is published byBombardier Regional Aircraft,A Division of Bombardier Inc.Garratt Boulevard, Downsview, Ontario, Canada M3K 1Y5Tel: (416) 375-4027 Fax: (416) 375-4540President, Pierre LortieSenior Vice-president, Sales, John GiraudyVice-president Sales, Asia/Pacific, James DaillyVice-president Sales, International, John HowarthVice-president Sales, The Americas, Ric AllisonVice-president, Marketing and Aircraft Programs, Steve RidolfiCopyright © Bombardier Inc. 1997Printed in CanadaInformation, technical data and performance figures in this publication are subject to change without notice.This publication does not intend to convey any guarantees or warranties. Any guarantees or warranties on any subjectare extended to customers only as may be provided in their purchase agreements.R EGIONAL UPDATE • PAGE 8