Bombardier Commercial Aircraft Update - September 2012

update Commercial Aircraft

September 2012 – ERA Edition

surge orders of summer

Inside: • • • • •

CSeries takes “flight” Saving fuel in the Q400 CRJ Service Centre for Russia Expanding services in Frankfurt CRJ1000 NextGen a success at Air Nostrum

Bombardier Commercial Aircraft provides optimized aircraft solutions for short-haul, medium-haul and longer-range markets.

CSeries: optimized single-aisle mainline solution

CRJ NextGen: optimized regional jet solution

Q400 NextGen: optimized short-haul solution

orders surge Bombardier

B

ombardier Commercial Aircraft’s Q400 NextGen, CRJ NextGen and CSeries aircraft have collectively drawn orders and other commitments for 103 aircraft since mid-July 2012. The Q400 NextGen airliner has attracted 32 firm orders and 25 options; the CRJ900 NextGen regional jet has drawn six orders and five options; and the CSeries jetliner has seen conditional orders for 15, as well as a Letter of Intent for 10 plus 10 purchase rights.

The most recent order came from Eurolot of Poland, which converted six of its 12 options on Q400 NextGen turboprop airliners to a firm order, increasing the number of the type in the airline’s fleet to 14.

“The Q400 NextGen aircraft is giving us the operational flexibility that is absolutely essential in the very competitive European market,” said Mariusz Dabrowski, President and Chief Executive Officer, Eurolot. “The Q400 NextGen airliner is fully meeting our expectations so we did not hesitate before ordering more of these efficient, economical, passenger-friendly aircraft.”

Canada’s Chorus Aviation, the parent company of Jazz LP, converted six of its 15 options on Q400 NextGen aircraft to a firm order.

And Canada’s WestJet converted a conditional order for 20 Q400 NextGen aircraft to a firm order and took options on an additional 25 of the type.

A conditional order for six CRJ900 NextGen regional jets from China Express Airlines was converted to a firm order. The airline, which has introduced the CRJ900 aircraft to China, also holds five options on the aircraft.

Interest in the all-new CSeries mainline, single-aisle transport also continued to grow. Air Baltic of Latvia signed a Letter of Intent to acquire 10 CS300 aircraft and took purchase rights on an additional 10 CS300 airliners.

And a customer, which asked to remain unidentified, placed a conditional order for five CS100 and 10 CS300 state-of-the-art aircraft.

The Bombardier fleet continues to expand around the globe with Q400/ Q400 NextGen and CRJ Series aircraft finding homes in Indonesia (Garuda Indonesia), Rwanda (RwandAir) and Togo (ASKY Airlines). In addition, EZnis Airways – the largest private airline in Mongolia – acquired a previously-owned Q400 NextGen aircraft to become the first operator of the aircraft model in that country. The aircraft was acquired through Nordic Aviation Capital, the Denmark-based leasing company.

Type approval for the operation of the Q400 aircraft in the central Asia nation was awarded earlier this year by the Civil Aviation Authority of Mongolia. The Q400 aircraft has been certified for gravel runway operations that predominate in rural Mongolia, which enables EZnis to fly mining charter customers directly to mine sites, while the aircraft’s large baggage compartment allows ample storage of mining provisions.

The certification in Mongolia followed the decision in June 2012 by the Interstate Aviation Committee (IAC) – commonly known by its Russian acronym, MAK – to award aircraft type approval to the Q400 turboprop for operation in Russia and the Commonwealth of Independent States.

“We are very encouraged by these developments which include all three of our aircraft families, coming as they have despite continuing economic uncertainties in many parts of the world,” said Mike Arcamone, President, Bombardier Commercial Aircraft. “The growing interest in the CSeries aircraft, with two new customers, is especially gratifying.”

September 2012 // 2

Why airBaltic chose the CSeries “A modern and efficient fleet is one of the fundamentals of the airline business,” said Martin Gauss, Chief Executive Officer, airBaltic in the airline’s inflight magazine “Baltic Outlook” in August 2012. “The unmatched economics of the 100 per cent new Bombardier CSeries aircraft will offer us even better service and ticket prices on our current flight network – which spans Europe, the Middle East, Russia and the CIS countries – as we evaluate new destinations for the added convenience of our passengers.”

The CSeries flight deck, the most technologically advanced commercial flight deck available, was displayed at airBaltic’s Riga, Latvia headquarters in August 2012 and was visited by hundreds of the airline’s employees, board members, government officials and local media, marking the first time the CSeries flight deck was shown at a customer’s site.

A northern European country, Latvia is ideally situated to be the transit point for travellers heading to and from other parts of Europe, Russia and the CIS, the Middle East and central Asia. Recognizing this, airBaltic has chosen to add up to 20 CS300 (10 firm orders, 10 purchase right aircraft) to its network to be able to reach these markets more readily.

“As a forward-thinking airline, airBaltic is continually recognized as one of the most innovative airlines in the world and we’re pleased that it has selected our CSeries aircraft for its fleet expansion requirements,” said Mike Arcamone, President, Bombardier Commercial Aircraft. “airBaltic’s selection of the CSeries aircraft demonstrates the flexibility of this game-changing aircraft and the missions it can perform. The CS300 aircraft is well-suited for reaching airports further afield based on its performance and economics and will be a perfect fit to their operations.”

The CSeries cabin and flight deck demonstrators are being displayed at Munich Airport until September 24, 2012. The demonstrators are expected to be shipped to China for the start of the Zhuhai Airshow, November 13 to 18, 2012.

CRJ1000 NextGen a success at Air Nostrum

3 // September 2012

Performance, economics, weight flexibility and capacity are the key factors contributing to the success of the CRJ1000 NextGen regional jet at Spain’s Air Nostrum, according to Miguel Falcon, the airline’s General Manager. The airline has placed firm orders for 35 CRJ1000 NextGen aircraft and had taken delivery of 10 as of June 30, 2012.

“It is simply an excellent aircraft, performing very well for us,” he said. “Its fuel burn is three to four per cent lower than anticipated, which with today’s fuel prices is extremely important. The range is also six per cent better than expected.”

Mr. Falcon said, “We were initially concerned about the aircraft’s performance at some of the airports we serve which have obstacle clearance issues but the CRJ1000 NextGen aircraft’s climb and cruise performance quickly allayed those concerns.”

Air Nostrum has deployed the aircraft primarily on international routes with an average flight time of around 1:16. The airline has also been able to reduce some daily frequencies from 10 to five while offering the same capacity of the smaller jets it replaced.

Mr. Falcon said the airline’s CRJ1000 aircraft have all the passenger comfort and convenience improvements provided by the “NextGen” interiors, and passenger response has been very positive.

Over the years, Air Nostrum has ordered 100 Bombardier jet and turboprop aircraft including 19 Q300 turboprops and 35 CR200, 11 CRJ900 and 35 CRJ1000 regional jets.

CSeries CSeries takes “flight” Bombardier’s CSeries aircraft has embarked on a virtual flight test program. The avionics, electrical, flight control, flyby-wire, hydraulic, landing gear and wiring systems on “Aircraft 0” (“Zero”) – the on-the-ground Integrated Systems Test and Certification Test Rig (ISTCR) have been commissioned and systems integration and communications have been successfully demonstrated.

“The commissioning of all the systems on ‘Aircraft 0’ was an important milestone that has allowed us to initiate the integrated ground test phase, and to conduct virtual flights,” said Rob Dewar. Vice-president and General Manager, CSeries, Bombardier Commercial Aircraft.

This approach, which involves testing a complete aircraft with all main systems and software fully configured at production standard, is new for our industry,” said Mr. Dewar.

“It will allow us to extensively test systems design in order to mitigate risk and provide the necessary reliability prior to first flight. The results thus far have been to our satisfaction and some have even exceeded our expectations.”

The ISTCR is one of the multiple rigs housed at the company’s Complete Integrated Aircraft System Test Area (CIASTA) facility in Mirabel, Québec, 40 km north of Montréal.

The successful commissioning of all the systems on “Aircraft 0” was supported by several key CSeries aircraft partners and suppliers, including CAE, Goodrich Actuation Systems, Hamilton Sundstrand, Honeywell, Liebherr-Aerospace, Parker Hannifin, Pratt & Whitney, Rockwell Collins and Fokker Elmo along with other structural and system suppliers that delivered all the required components. Representatives from these organizations are co-located in Mirabel to work with Bombardier on system testing and integration processes.

In addition to the ISTCR, other rigs being used in the ground test phase are: the Engineering Flight Simulator (ESIM) being built by CAE and now in an advanced stage; the avionics Systems Integration Test Stand (SITS) and the Flight Controls Integration Lab (FCIL), which are already commissioned at September 2012 // 4

Update Rockwell Collins’ and Parker Hannifin’s facilities respectively; and the Interior and Environmental Control Systems (ECS) rig which is also being completed at Mirabel. “‘Aircraft 0’ is operating in near-real conditions since it combines production-level systems and structural components, an aerodynamic loading system and a high-fidelity flight model.

Our suppliers are with us every step of the way and we continue on our drive towards the CSeries aircraft’s entry-into-service in 2013,” added Mr. Dewar.

Bombardier is also building the test airframe that will be used during the Complete Airframe Static Test (CAST) designed to demonstrate the static strength of the airframe and show compliance with certification requirements.

In addition, parts for the first CSeries flight test vehicle (FTV1) are on site in Mirabel, Québec. Major components for the FTV1 are nearing completion and are on schedule for arrival in late September.

Test airframe assembly “Every day brings a new development and it’s very exciting. Whether it’s the start of a new test, the results of a new test, or the arrival of a new production part, the team is very enthusiastic about all these milestones,” said Mr. Dewar. The assembly of the test airframe is another 5 // September 5 // July 2012 2012

significant development as we make headway in the intense ground testing phase before the CSeries aircraft’s flight test program. The fuselage sections in the test airframe are being joined and we’re looking forward to adding the wings and the empennage, and starting the stress tests.”

The test airframe − comprised of both metallic and composite structures − is being fitted and assembled in a test rig consisting of a superstructure of steel towers and trusses, as well as loading structures that will be used to apply loads to the test airframe. To demonstrate static strength, a series of load cases – representing flight maneuvers, landing, takeoff and other in-flight and on-ground conditions − will be applied to the free-floating, non-restrained, counterbalanced test airframe. For selected load cases, internal cabin pressure will also be applied when simulating in-flight conditions.

Strain gauges will be used to measure and record up to 8,000 parameters at defined locations on the airframe. Data from the strain gauges will be monitored by Bombardier’s stress engineers, as well as by the partners and suppliers that are involved in the development of structural components for the CSeries aircraft.

Q400 fuel efficiency and flexibility How much fuel can be saved by flying the Q400 aircraft, already a world leader in fuel economy, at a lower speed?

Flybe in the U.K. was routinely flying its Q400 aircraft at VMO to take advantage of the aircraft’s speed. As the price of fuel increased, Flybe elected to fly at VMO minus 20 knots to achieve fuel savings.

The results are impressive. In 2009, average Q400 in-flight fuel burn was 1,063 kg; in May 2012, with Flybe’s Flight Efficiency Program (FEP), it was 921 kg, for a fuel burn reduction of 13.4%.

In a presentation aboard the Q400 aircraft this past summer at Farnborough Airshow, Managing Director Andrew Strong noted, “We fly 150,000 times a year so any small saving means a lot to the bottom line as well to the environmental impact.” He went on to say that the savings are in the millions.

The Q400 aircraft’s high cruise speed of 360 knots (667 km/h) has been one of its strong selling points. Over a 300 nm (555 km) route, Q400 flight time is 62 minutes – within eight minutes of a Boeing 737.

Of course, flying at increased speeds burns more fuel in exchange for reduced flight times.

But when lower fuel usage and lower seat-mile costs are paramount, as they often are, the Q400 NextGen can fly at reduced speed to match slower turboprops on fuel burn per seat and still deliver eight per cent lower cash operating costs per seat.

Flybe provided comparative flight times and fuel burns on two routes: • Manchester – Southampton (184 sm): – Before FEP: 44 minutes, 866 kg of fuel used; – During FEP: 47 minutes, 616 kg of fuel used, for a savings of 250 kg.

• Exeter – Amsterdam (371 sm): – Before FEP: 76 minutes, 1,305 kg of fuel used; – During FEP: 81 minutes, 1,054 kg of fuel used, for a savings of 251 kg.

This adds up to a very significant annual savings in fuel and aircraft operating costs, with an almost negligible five-minute increase in flying times.

Flybe can identify where excess fuel is consumed on a particular flight. What the airline calls “overburn” is to be addressed through sharing detailed information with crews and refining route block times so that average cruise speeds can be optimized for the current fuel price.

However, the high speed is there if it is required to optimize schedule or to compete head-tohead with jets.

Flybe gets

13% fuEl savings

Q400 investment continues Bombardier Commercial Aircraft has continued to invest in the Q400 to keep the aircraft up to date with advances in technology where they will benefit the operators of the aircraft. Creation of the Q400 NextGen interior mirrored that of the CRJ700 NextGen, CRJ900 NextGen and CRJ1000 NextGen regional jets and made the Q400 NextGen passenger cabin the most comfortable of any turboprop airliner. A threeabreast dual class interior was also made available. Other enhancements include the Wide Area Augmentation System, enhanced navigation package, TCAS 7.1 and UL 801 ACARS. Bombardier is currently working on fuel optimization, biofuel revenue flights, RNP 0.3 APCH and a Narrow Runway Supplement for the Q400 aircraft.

Future initiatives include the adoption of the new Zodiac Slimplus seats, RNP AR 0.3 and ADS-B out.

September 2012 // 6

Expanding services in Frankfurt Bombardier Commercial Aircraft customers located in or flying to Europe, the Middle East and Africa are the beneficiaries of a major expansion of the services available from the Frankfurt parts distribution facility.

The Frankfurt facility, which has been transitioned into a hub, is now able to accept customer part returns and part exchanges. The centre can also certify parts and receive shipments direct from vendors, reducing return time for units and increased parts availability within the region.

The Frankfurt hub will complement the Chicago parts distribution facility as part of Bombardier’s strategy to decentralize its support network and offer more regionalized support to all operators of Bombardier’s commercial and business aircraft customers.

“The new Frankfurt hub capabilities will reduce turn time for transactions and billing processes as well as increased parts availability,” said Diane De Souza, Vice-president, Parts Services, Bombardier Customer Services. “Support to our customers continues to be a top priority for Bombardier, and the expansion of our distribution capabilities is part of our initiative to improve satisfaction for our customers.”

Authorized Service Facility comes to Russia Bombardier Commercial Aircraft has responded to the growing fleet of CRJ100 and CRJ200 regional jets in Russia and the Commonwealth of Independent States (CIS) by granting Authorized Service Facility (ASF) status to Tulpar Technic in Kazan, Russia.

Based at Kazan International Airport, Tulpar Technic is authorized to perform maintenance on CRJ100 and CRJ200 aircraft. There are approximately 72 of the models operating in Russia and the CIS. “Tulpar Technic is a leader in the region and will provide operators of aircraft manufactured by Bombardier with much-needed access to quality maintenance services,” said Eric Martel, President, Bombardier Customer Services & Specialized and Amphibious Aircraft. “The Russian market is extremely important to Bombardier and our team continues to accelerate the expansion of our international services offering around the world.”

Tulpar Technic has a full-time staff of 25 maintenance technicians and is further supported by an on-site cooperation agreement with Adria Airways Tehnika (AAT), a long-time CRJ aircraft ASF based at Ljubljana, Slovenia. Tulpar Technic’s facility includes a 49,600 square foot (4,608 m2) maintenance hangar.

Bombardier’s ASF network serves operators of its commercial and business aircraft in more than 25 countries.

Eurolot signs for Smart Parts

7 // September 2012

Alexander Neradko, Chief of the Russian Federal Aviation Transport Agency, congratulates employees at the opening ceremony of new Tulpar Technic facility.

Eurolot of Poland has signed a five-year agreement to participate in the Q400 aircraft’s Smart Parts program. The program is customized to an airline’s specific operational requirements and will provide the participating airline with competitive and predictable advanced component exchange and repair costs, as well as superior availability of key components for the airline’s fleet of Q400 aircraft from entry into service through the lifetime of the agreement.

Earlier, Jazz Aviation LP of Canada signed a nine-year Smart Parts agreement; Luxair of Luxembourg extended its agreement for a further five years; and Republic Airlines in the U.S. agreed to terms for Smart Parts coverage for its Q400 aircraft.

“As the original equipment manufacturer, Bombardier is in a unique position to understand the needs of Smart Parts program participants and provide the best solution to ensure the highest reliability and lowest life-cycle costs,” said Gary Martin, Vicepresident, Sales, Marketing & Service Programs, Bombardier Customer Services. “We are delighted by the growing list of Smart Parts program participants – a program that continues to outpace competing offerings.”

Bombardier at ERA 2012 Bombardier Commercial Aircraft will be stressing the efficiency, economy and flexibility of its three aircraft families – Q400 NextGen turboprop regional airliner, CRJ700 NextGen, CRJ900 NextGen and CRJ1000 NextGen regional jets, and the all-new CSeries mainline jet – at the 2012 European Regional Airlines Association General Assembly in Dublin, Ireland September 19-21.

Bombardier already has a large presence in Europe and Russia/CIS with all four Q-Series variants, all five CRJ models and two CSeries aircraft models in service with, or on firm order from, airlines in the region. These are represented by 52 airlines or special-mission operators in 28 countries and number about 600 aircraft.

Philippe Poutissou, Vice-president, Marketing, Bombardier Commercial Aircraft, will host a media briefing during the Assembly, joined by Bartlomiej Matusewicz, Vice-president, Operations at Eurolot.

cseries.com

crjnextgen.com

q400nextgen.com

Status (June 30, 2012) Delivered Series 100 299 Series 200 105 Series 300 267 Series 400 406 Program total 1,077

Total 299 105 267 428 1,099

Dash 8-100/Q200/Q300 Fleet statistics, May 2012 Average flight time (mins.)

51 Average annual utilization (hours/cycles) 1,764/2,079 Highest annual utilization (hours/cycles) 2.963/4,835 Fleet total hours 21,226,517 Fleet total cycles 25,684,920 Schedule completion rate 99.5% 12-mo. Avg. Q400 Fleet statistics, June 2012 Average flight time (mins.)

58 Average annual utilization (hours/cycles) 2,164/2,248 Highest annual utilization (hours/cycles) 3,281/3,275 Fleet total hours 3,710,790 Fleet total cycles 4,034,955 Schedule completion rate 99.6% 12-mo. Avg.

CSeries Facts and Figures Status (June 30, 2012) Delivered Total CS100 0 66 CS300 0 72 Program total 0 138 The CSeries Aircraft program has also booked 214 Options, Letters of Intent and Purchase Rights for CS100 and CS300 Aircraft.

Status (June 30, 2012) Delivered Total CRJ100 226 226 CRJ200 709 709 CRJ440 86 86 CRJ700 316 324 CRJ705 16 16 CRJ900 257 268 CRJ1000 23 67 Challenger 800 33 33 Program total 1,666 1,729 CRJ100/200 Fleet statistics, May 2012* Average flight time (hrs.)

Average annual utilization (hours/cycles) Highest annual utilization (hours/cycles) Fleet total hours Fleet total cycles Schedule completion rate

1.05 2,191/2,086 3,504/3,315 25,010,448 21,974,684 99.7% 12-mo. Avg.

CRJ700/705/900 Fleet statistics, June 2012 Average flight time (hrs.)

1.41 Average annual utilization (hours/cycles) 2,655/1,884 Highest annual utilization (hours/cycles) 3,364/2,619 Fleet total hours 9,056,065 Fleet total cycles 6,613,256 Schedule completion rate 99.7% 12-mo. Avg. CRJ1000 Fleet statistics, June 2012 Average flight time (hrs.)

Average annual utilization (hours/cycles) Fleet total hours Fleet total cycles Schedule completion rate *Does not include operators of corporate aircraft.

1.09 2,289/2,104 53,118 48,662 99.8% 12-mo. Avg. Utilization based on schedule data.

Bombardier Commercial Aircraft is pubished by: Bombardier Commercial Aircraft 123 Garratt Boulevard, Toronto, Ontario Canada M3K 1Y5 Tel: +1-416-375-4027 // Fax: +1-416-375-4540

President: Michele (Mike) Arcamone Senior Vice-president, Commercial: Chet Fuller Vice-president, Marketing: Philippe Poutissou Vice-president, Customer Services and Support: Todd Young

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www.aero.bombardier.com Information, technical data and performance figures in this publication are subject to change without notice. This publication does not intend to convey any guarantees or warranties. Any guarantees or warranties on any subject are extended to customers only as may be provided in their purchase agreements. Articles in Commercial Aircraft Update may be reproduced without permission, providing the acknowledgement is given to Bombardier Commercial Aircraft Update.

Copyright © Bombardier Inc. 2012 Printed in Canada. *Bombardier, CS100, CS300, CSeries, CRJ, CRJ700, CRJ900, CRJ1000, Dash 8 , NextGen,Q400 and Q-Series are trademarks of Bombardier Inc. or its subsidiaries.

Q-Series/Dash 8 Facts and Figures CRJ Series Facts and Figures