US regional operator Pinnacle Airlines Corporation has extended its agreement with Continental Airlines and ordered 15 Bombardier Q400 NextGen turboprop aircraft to join an existing 15 Pinnacle's Colgan Air subsidiary operates on behalf of Continental.
Shortly after Colgan launched Q400 flights for Continental from its Newark hub in February 2008 Pinnacle CEO Philip Trenary predicted exercising some if not all options the company had for the aircraft. More recently the chief executive has highlighted a better than expected fuel performance for the Q400.
Flight's ACAS database shows Colgan operates a total of 15 Q400s and has options for 30 aircraft.
The next batch of 15 Q400s are scheduled for delivery between August 2010 and April 2011. Terms of the agreement include operation of each aircraft by Colgan for 10 years.
Pinnacle in a statement explains it has secured financing to cover 85% of the purchase price of each Q400 and most of the required pre-delivery payments. Cash payments made by Pinnacle to Bombardier before the second quarter of 2010 will be supported by the financing from the undisclosed lender. Bombardier say the order is valued at $432 million based on list prices.
Bombardier agreed to supply Pinnacle with 15 additional delivery slots exclusively for Continental Q400s starting in 2013.
Memphis-based Pinnacle also retains 15 Q400 options for delivery in 2011 "that it may market to other major US airlines," the company states.
Source: Air Transport Intelligence news
