Lufthansa Becomes Launch Customer for CSeries Aircraft Program

Released on Sunday, July 13, 2008

July 13, 2008 � Farnborough, U.K.

Aerospace

Letter of interest for up to 60 aircraft from Lufthansa; significant interest from airlines worldwide

Mirabel selected as final assembly site, Bombardier's Belfast facility for the development and manufacture of the wings; manufacture of aft fuselage and cockpit to take place at Bombardier's Saint-Laurent site

Repayable investments with the governments of Canada and Québec as well as Northern Ireland and British Government Departments

Bombardier today announced that its Board of Directors has granted approval for the launch of the CSeries family of aircraft, a new game-changing five-abreast commercial airliner family, with the economics, performance, environmental and passenger-oriented improvements demanded by airline customers for the next quarter century. Entry into service is scheduled for 2013.

Launch customer, Lufthansa, a leading German airline, has signed a letter of interest (LOI) for up to 60 aircraft, including 30 options. The approximate list price of each aircraft is $46.7 million US. Additionally, discussions with a number of established airlines worldwide are progressing well.

Bombardier made the announcement today at the Farnborough International Airshow during a press conference at its CSeries pavilion hosted by Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.; Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace and Gary R. Scott, President, Bombardier Commercial Aircraft. Nico Buchholz, Senior Vice President, Corporate Fleet, Lufthansa attended the event as well as: David Moloney, Assistant Deputy Minister, Industry Canada; Raymond Bachand, Minister of Economic Development, Innovation and Export, Government of Québec; Right Honourable Shaun Woodward MP, Secretary of State for Northern Ireland; Arlene Foster MLA, Northern Ireland Minister for Enterprise, Trade and Investment; and Steve Finger, President, Pratt & Whitney. Also in attendance were representatives from the Shenyang Municipal Government, AVIC I/SACC, Rockwell Collins, Parker Hannifin Corporation, and Liebherr-Aerospace Toulouse SAS.

"Today is a great day for Bombardier, our customers, our employees, our shareholders and our suppliers. I am proud to say that we have met our business plan objectives: a technologically advanced aircraft family, a strong pipeline of orders and repayable investments with governments and agreements with key suppliers. With the latest in system technologies and aerodynamics, the CSeries family of aircraft will revolutionize the economics and network strategies for airline operations in the 100- to 149-seat commercial market. It is another example of our commitment to designing and manufacturing innovative aircraft that will ensure our continued industry leadership," said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.

"At Lufthansa, we are committed to a balance between commercial success, environment and business policies oriented toward sustainability," said Nico Buchholz, Senior Vice President, Corporate Fleet, Lufthansa. "Our initial evaluations of the CSeries family of aircraft and discussions with Bombardier over the last few months have evolved and made us believe that the CSeries family of aircraft clearly meets our stringent requirements for sustainable fleet development, both in terms of environmental and commercial requirements, and flexibility for the future. We are proud to be a part of its launch."