German Lessor Orders Up to 80 Bombardier CRJs

Deutsche Structured Finance (DSF) has signed a memorandum of understanding for the purchase of 50 Bombardier CRJ regional jets, plus options for 30 more.

A definitive purchase contract is expected shortly for the firm order, which includes 30 70-seat CRJ700s and 20 86-seat CRJ900s valued at $1.5 billion. Deliveries are slated to begin in the first quarter of 2003 and extend through mid-2009. Model selection for the $1 billion optional order is pending, but could include 50-, 70-, or 90-seat CRJs.

DSF's Deutsche Operating Leasing unit-created in 1999 to allow German investors to participate in aircraft leasing transactions-plans to find homes for the aircraft as they leave Bombardier's production line.

"The first two aircraft will be leased upon delivery in 2003, and we are working with Bombardier to place the rest of the order," said Paul Steinhardt, DOL's CEO as well as DSF's chief managing director. "Of course we don't know where the aircraft for 2008 will go."

DSF expects to place the aircraft with European customers. The Frankfurt-based company already has placed nine CRJs, including two with German operator Eurowings, and two others with French carrier Aerolittoral.

The lessor's lease portfolio extends to major airline equipment as well. The company now manages 12 Boeing 737-300s and two Boeing 767-300ERs.

The DSF commitment raises the CRJ900 order book to 118 firm orders and options. The 90-seat CRJ program was unveiled at last year's Farnborough Air Show, and the aircraft is making its public debut at Paris this week.

"The fact that we flew the 90-seater just nine months after launching the program demonstrates the value of going with a derivative design," said Steven Ridolfi, president of Bombardier Regional Aircraft.

Also at the Paris show, Bombardier announced a follow-on order for two Dash 8-Q400 turboprops from Austrian regional Tyrolean Airways.