Waterbomber Purchase Renews Fleet and Delivers Industrial Benefits

The Provincial Government today announced an agreement to acquire four new Bombardier 415 waterbomber aircraft through a transaction valued at approximately $120 million US. The purchase will renew the province�s fleet of waterbombers, providing more modern and efficient fire suppression capabilities, and will also deliver significant industrial benefits for Newfoundland and Labrador.

The Honourable Danny Williams, Premier of Newfoundland and Labrador, was joined by the Honourable Tom Marshall, acting Minister of Transportation and Works; the Honourable Ross Wiseman, Minister of Business; and, Michel Bourgeois, President, Specialized and Amphibious Aircraft and Military Aviation Training, Bombardier Aerospace in making the announcement at Provincial Aerospace Hangar #1- Elite Fixed Base Operation (FBO) at St. John�s International Airport.

�Today we are announcing an agreement with Bombardier Aerospace that will facilitate the replacement of some of our decades-old waterbombers,� said Premier Williams. �This agreement represents yet another very strategic, responsible investment in important public infrastructure by our government that will result in better forest fire protection throughout the province. Through our negotiations with Bombardier we have also been able to ensure that significant industrial benefits flow into Newfoundland and Labrador. This is just one more tangible result of our government's commitment to maximizing employment, economic and other benefits for people and businesses in our province.�

�This sale to the Government of Newfoundland and Labrador further demonstrates the trust our customers have in the Bombardier 415 amphibious aircraft and its ability to meet their firefighting needs,� said Michel Bourgeois, President, Specialized and Amphibious Aircraft and Military Aviation Training, Bombardier Aerospace. �With its enviable, proven track record in firefighting, the aircraft�s unique operational capabilities and exceptional performance are recognized worldwide. Newfoundland and Labrador has the ideal geography for the Bombardier 415 scooping technology, with its numerous lakes and rivers and vast land.�

The Air Services Division of the Department of Transportation and Works currently owns and operates six CL-215 waterbombers, which are predominantly used to assist the Department of Natural Resources in forest fire suppression. These aircraft are aging and are reaching the need for either replacement or major refit. It was determined to be more prudent to replace four of the existing aircraft with new, modern Bombardier 415 aircraft, rather than to refurbish them. The value of this transaction is approximately $120 million US, which includes necessary spare parts, training and technical support. The first of the new aircraft will be delivered in April, 2010.

�Our government has designed an aggressive plan to revitalize key provincial infrastructure and the acquisition of four new waterbombers is a key piece of that plan,� said Minister Marshall. �This multi-million dollar deal will ensure we continue to have the fire suppression capabilities we need right across our province for years to come.�

�These new, state-of-the-art waterbombers significantly improve our aerial firefighting capacity, and are an important component of the forest fire management services our department provides to protect life, property and forest resources from forest fires,� added the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency.

In a separate agreement negotiated with Bombardier, the company has committed to delivering industrial benefits in Newfoundland and Labrador. Bombardier will award contracts in the province and the commitment includes contributing to initiatives that facilitate capacity-building in the province�s aerospace and defence industry and providing grants to post-secondary institutions in support of targeted training or educational programs related to aerospace and defence.

"I am pleased that, as a result of our negotiations, Bombardier will make substantial investments in our province,� said Minister Wiseman. �It is a clear demonstration, in dollars and cents, that the company recognizes, and has confidence in, the impressive capabilities of Newfoundland and Labrador�s aerospace and defence sector.�

The waterbomber acquisition builds on the Provincial Government�s aggressive infrastructure investment plan, which will see approximately $4 billion spent over the next several years, including the approximately $800 million announced in February for initiatives province-wide.

(Bombardier 415 and CL-215 are trademarks of Bombardier Inc. or its subsidiaries.)

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2009 10 28                                                 10:20 a.m.