Bombardier Aerospace announced today that Air New Zealand has placed a firm order for three 50-seat Bombardier Q300 turboprop airliners on behalf of its wholly owned regional airline subsidiary Air Nelson. The order represents the conversion of options taken as part of Air New Zealand's initial order which was announced on October 10, 2004. At that time, Air New Zealand placed a firm order for 17 Q300 aircraft and took options on an additional 10 Q300 and 13 70-seat Bombardier Q400 aircraft. As of July 31, 2006, nine Q300 aircraft had been delivered to Air New Zealand.

The value of the transaction announced today based on Q300 list prices is approximately $48.6 million US.

"The performance and reliability of the Bombardier Q300 was a key factor for us in choosing this aircraft type for Air Nelson's fleet," said John Hambleton, General Manager, Air Nelson. "These aircraft have supported Air Nelson to steadily grow its markets and better serve regional New Zealand." "Reaction to the Q300 from both crew and customers has been outstanding. Our flight attendants and customers are impressed by the spaciousness, quietness and vibration-free environment of the cabin," said Mr. Hambleton.

"We are gratified by the reaction of Air New Zealand, Air Nelson and their passengers to the Bombardier Q300," said Steven Ridolfi, President, Bombardier Regional Aircraft. "It is more evidence that the Q300 is the most comfortable and cost-effective turboprop in the 50-seat class." Mr. Ridolfi noted that Air New Zealand was the ninth Star Alliance partner to operate Bombardier Q-Series turboprops or CRJ regional jets, joining Adria Airways, Air Canada Jazz, Air Nippon Network Ltd., Austrian arrows, Lufthansa Regional, SAS, United Express and US Airways Express. These airlines have ordered more than 600 Bombardier regional aircraft.