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Bombardier (TSX:BBD) extends Arriva deal

Transport
TSX:BBD
19 October 2020 15:21 (EDT)
Bombardier - CEO, Eric Martel

Source: Hydro Quebec

Bombardier’s (BBD) transportation arm has signed a three-year extension to its ongoing agreement with UK-based train service Arriva.

Through the agreement, Bombardier Transportation will continue to maintain, overhaul, service and clean a fleet of 34 Voyager and 24 Super Voyager trains, which are currently operated by Beacon Rail.

The three-year extension is valued at  roughly C$430 million and includes an option to further extend the contract by another year.

Matt Byrne, President of Bombardier Transportation UK, said he was delighted to reach an agreement to maintain the Voyager and Super Voyager fleet for Arriva CrossCountry.

“This important contract extension is a reflection of our excellent relationship with Arriva, and the hard work and professionalism of our Central Rivers team who deliver day in, day out for Britain’s vitally important CrossCountry network,” he said.

Turning to the company’s aviation branch, Greg Hoggett has been appointed General Manager of Bombaider’s Biggin Hill Service facility in London. The service centre offers tip-to-tail heavy maintenance on a number of aircraft types and was first established in 2017.

Greg will oversee the facility’s upcoming expansion, including the site’s new hanger, with construction expected to complete by 2022.

Jean-Christophe Gallagher, Executive Vice President of Services and Support, and Corporate Strategy at Bombardier Aviation said the company was thrilled to welcome Greg to the Bombardier family.

“His extensive knowledge and experience will be influential in leading the evolution of our Biggin Hill facility as we continue to enhance our customer service offerings in the region,” he added

Bombardier is up 1.54 per cent and is trading at 33 cents per share at 10:30am EDT.

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