Bombardier Commercial Aircraft, a unit of plane and train maker Bombardier Inc. (BBD_B.TO, BBD_A.TO), said that a subsidiary of Chorus Aviation Inc. CHR_DB.TO, CHR_B.TO, CHR_A.TO) has signed a firm purchase agreement for five CRJ900 aircraft. The order also includes purchase rights for an additional five CRJ900 aircraft.
Based on the list price of the CRJ900 aircraft, the firm order is valued at about $229 million, and could increase to $467 million if Chorus exercise all its purchase rights.
Once delivered, the five firm-ordered aircraft will be operated by Jazz Aviation LP, also a subsidiary of Chorus, under the Air Canada Express banner.
Additionally, with the help of Bombardier, Jazz will reconfigure its current 16 CRJ705 aircraft into CRJ900 aircraft with 76 seats. Jazz will also reconfigure 21 Q400 turboprops currently in its fleet with an additional four seats to increase each aircraft's passenger capacity to 78. All 37 aircraft are operated under the Air Canada Express banner.
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