Monday, Bombardier Inc. (BBD-A.TO) announced that Bombardier Transportation and Deutsche Bahn, or DB, have signed a framework agreement for 800 double-deck coaches valued up to 1.5 billion euros or US$2.1 billion.
Bombardier noted that with generation of vehicles, DB would actively compete for tenders in the local rail transport market in 2009. The vehicles are indicated to be compatible with other generations, providing cost benefits in operation. The company noted that the 800 double-deck coach pact was the biggest agreement DB has ever signed with a single supplier.
Since 1994, when Deutsche Bahn AG was founded, it purchased over 1,600 double-deck coaches, with DB Regio currently having more than 2,000 double-deck coaches in its fleet. Bombardier said that with a 98% reliability rating in operation, the vehicles were popular customers.
Hartmut Mehdorn, Chief Executive Officer, Deutsche Bahn stated "We are going into regional rail transport tenders with our excellent products and convince with our quality. Precisely because worldwide economic growth is being assessed so sceptically, we must have the courage to invest in the future. Efficient, high-capacity transportation systems require a state-of-the-art vehicle fleet with energy-saving trains that can be flexibly combined and driven."
BBD-A.TO is currently trading at $4.75, up $0.04 or 0.85% on the TSX.
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