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27/03/2002
Lost aircraft deal will have “no impact” say Bombardier
Bombardier Aerospace Belfast have lost a deal, potentially worth millions, they signed last year to supply 57 Learjets to an American airline subsidiary Avolar.
Last December at the New Orleans air show Bombardier Aerospace had signed a letter of intent with Avolar, a fractional jet service, to supply up to fifty-seven Learjet 45 and Learjet 60 aircraft. Deliveries were to commence in mid-2002 and carry through to 2006. The total potential value of the transaction had been estimated at the time around $632 million.
However on March 22, United Airlines, who own Avolar, said they were wrapping up the company because it had proven financially unviable to sustain the company in an environment exacerbated by the September 11 terrorist attacks.
However a spokesperson for Bombardier said the decision would not have “any impact on their financial performance given that the extent of our agreement with Avolar was within the form of letters of intent and not firm content.”
The spokesperson added the letters of content were never included in projected production schedules or financial estimations, which meant the news of Avolar’s dissolution didn’t have “any impact at all”.
She added that they get many letters of intent and that not all of them are converted into firm orders.
Announcing the closure of Avolar last Friday, United Airlines CEO Jack Creighton said: “At this juncture, we believe closing the subsidiary is the most prudent move possible.
“With the decision, United Airlines will begin an orderly shutdown of the operation. Customers who signed on for Avolar’s fractional jet service are in the process of being notified of the closing.
“We greatly appreciate the tireless efforts and dedication of the employees who helped us launch this subsidiary. They worked hard to bring the vision of Avolar to life, but were challenged by unfortunate and unexpected circumstances that even their best efforts couldn't overcome.” (AMcE)
Last December at the New Orleans air show Bombardier Aerospace had signed a letter of intent with Avolar, a fractional jet service, to supply up to fifty-seven Learjet 45 and Learjet 60 aircraft. Deliveries were to commence in mid-2002 and carry through to 2006. The total potential value of the transaction had been estimated at the time around $632 million.
However on March 22, United Airlines, who own Avolar, said they were wrapping up the company because it had proven financially unviable to sustain the company in an environment exacerbated by the September 11 terrorist attacks.
However a spokesperson for Bombardier said the decision would not have “any impact on their financial performance given that the extent of our agreement with Avolar was within the form of letters of intent and not firm content.”
The spokesperson added the letters of content were never included in projected production schedules or financial estimations, which meant the news of Avolar’s dissolution didn’t have “any impact at all”.
She added that they get many letters of intent and that not all of them are converted into firm orders.
Announcing the closure of Avolar last Friday, United Airlines CEO Jack Creighton said: “At this juncture, we believe closing the subsidiary is the most prudent move possible.
“With the decision, United Airlines will begin an orderly shutdown of the operation. Customers who signed on for Avolar’s fractional jet service are in the process of being notified of the closing.
“We greatly appreciate the tireless efforts and dedication of the employees who helped us launch this subsidiary. They worked hard to bring the vision of Avolar to life, but were challenged by unfortunate and unexpected circumstances that even their best efforts couldn't overcome.” (AMcE)
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Ryanair calls for common sense not state aid
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