Bombardier Signs Air New Zealand for 17 Q300 Turboprops	October 2004

Air New Zealand's order for 17 Bombardier Q300 50-seat turboprops, announced on October 10, 2004, is further evidence that the market for turboprops is showing a resurgence despite the popularity of the regional jet. Air New Zealand also took options on 10 Q300 and 13 Bombardier Q400 70-seat turboprops, confirming the economic advantage of turboprops on the airline's short-haul domestic network.

While this was the first Q Series order from Air New Zealand, three current operators, Qantas, Japan Air Commuter and All Nippon Airways, have re-ordered 13 Q300 and Q400 aircraft so far in 2004.

Air New Zealand's Q300 aircraft will be flown by the airline's wholly-owned regional airline, Air Nelson, which operates as Air New Zealand Link.

"Replacement of the 33-seat Saab is not only to provide a long term solution of the current capacity constraints faced by Air Nelson, but also to gain the performance efficiencies and optimum passenger comfort that new aircraft technology offers," said Ralph Norris, Managing Director and Chief Executive of Air New Zealand. "The Q300 is the right choice due to its superior performance and I am sure that Air Nelson's customers will enjoy the enhanced passenger comforts."

Steven Ridolfi, President, Bombardier Regional Aircraft, noted that Air New Zealand is known for the thoroughness with which it assesses potential aircraft acquisitions "so we are delighted that the Bombardier Q300 has been selected as the superior choice to meet the airline's requirements."

The Air New Zealand order further solidified Bombardier's dominant position in the regional aircraft market in the Asia/Pacific region. Airlines in 12 countries in the region operate more than 170 Bombardier regional aircraft, with more than 50 Bombardier turboprops in Australia and New Zealand.