page 52 Bombardier Inc. Annual Report 2003-04 Bombardier Aerospace received the following major orders during fiscal year 2004: - from US Airways for 60 Bombardier CRJ200 and 25 Bombardier CRJ700 aircraft, for  a total value of approximately $3.2 billion.  The 85 firm orders include the transfer  of 36 Bombardier CRJ firm orders held by  GE Capital Aviation Services, for a net back- log increase of 49 aircraft. Deliveries began in the fourth quarter of fiscal year 2004;  - from SkyWest Airlines for 30 Bombardier CRJ700 aircraft, for a total value of approxi- mately $1.2 billion, and 10 Bombardier  CRJ200 aircraft, for a total value of approx- imately $310 million. Deliveries of the Bombardier CRJ700 aircraft began in  January 2004 and will continue through  2005. Deliveries of the Bombardier CRJ200 aircraft are expected to begin in the second quarter of fiscal year 2005; - from Mesa Air Group, Inc. for 14 Bombardier CRJ900 aircraft and six Bombardier CRJ700 aircraft, for a total value of approximately  $837 million. Deliveries are expected to  begin in the first quarter of fiscal year 2006 and the third quarter of fiscal year 2005, respectively; and - from FlyBE., a U.K. carrier, for 17 Bombardier Q400 turboprops, for a total value of approx- imately $545 million. Deliveries began in the second quarter of fiscal year 2004. As at January 31, 2004, Bombardier Aerospace’s order backlog, options and conditional orders for regional aircraft consisted of the following:  Market share Product development In accordance with the method used throughout the industry, the market share for Bombardier Aerospace’s regional aircraft is calculated on the basis of gross order intake and aircraft deliveries during the calendar year, which does not correspond with Bombardier Aerospace’s fiscal year order intake and deliveries. During calendar year 2003, the combined order intake for Bombardier CRJ and Bombardier Q-Series aircraft earned a 56% market share of the 20- to 90-seat regional aircraft segment, the market segment in which Bombardier Aerospace is active, accounting for 163 of the 291 units ordered, compared to 50% or 56 of 111 units ordered in calendar year 2002. Based on aircraft deliveries, Bombardier’s overall market share in this segment was 70% with 242 of 345 units deliv- ered, compared to a 59% or 213 of 361 units delivered in calendar year 2002. In calendar year 2003, order intake for the Bombardier CRJ Series in the 20- to 90-seat regional jet segment was 132 of the 250 units ordered or a 53% market share. This compares to a 54% market share, or 46 of the 85 units ordered in calendar year 2002. Based on aircraft deliveries, the Bombardier CRJ Series had a 70% market share, or 223  of the 317 units delivered in 2003, compared to a 59% market share, representing 184 units of 313 delivered in calendar year 2002. Increased deliveries of Bombardier CRJ200 aircraft and the delay of competitors’ new  products reaching the marketplace had a favourable impact on Bombardier Aerospace’s market share. In the turboprop segment, 41 units were ordered in the 20- to 90-seat market during calendar year 2003, compared to 26 units in calendar year 2002. The Bombardier Q-Series turboprop market share was 76% of the  turboprop segment, with 31 firm orders during calendar year 2003, compared to a 38% market share last year, with 10 firm orders. The increase in gross order market share  was driven by an increase in orders for the Bombardier Q400 aircraft. The Bombardier Q400 aircraft targets low-fare carriers  because of its low operating costs, a critical variable for these airlines. Based on aircraft deliveries, the Bombardier Q-Series turboprop market share was 68% with 19 of 28 units delivered in 2003, compared to a 60% share in calendar year 2002, or 29 of 48 units delivered. In recent years, Bombardier Aerospace has made significant investments in the develop- ment of two product families that both offer benefits of commonality across the platform and superior economic operating efficiency. In March 2003, the 50-passenger Bombardier CRJ200 regional jet obtained certification from Transport Canada for operation at airports  up to 13,000 feet (3,962 m) above sea level. Standard certification caps airport operations  at 10,000 feet (3,048 m) above sea level.  High-altitude certification for the Bombardier CRJ200 aircraft followed a successful flight test program conducted at the airport in  La Paz, Bolivia. During fiscal year 2005, Bombardier Aerospace will study the viability of developing a new generation of commercial aircraft  platform. On February 26, 2004, Bombardier Aerospace appointed a president of the New Commercial Aircraft Program, who will be responsible for forming and leading a multi- disciplinary team for this project. AIRCRAFT OPTIONS AND ON FIRM CONDITIONAL ORDER ORDERS TOTAL Bombardier CRJ200 151 777 928 Bombardier CRJ700 96 387 483 Bombardier CRJ900 26 48 74 Bombardier Q100/200 1 1 2 Bombardier Q300 6 27 33 Bombardier Q400 23 65 88 303 1,305 1,608