Through June 1989, Canadair had commitments for 116 of the new aircraft prior to start of production. Canadair estimated the size of the market for the new aircraft at 500 to 700 units. Its use would allow regional airlines to serve low-passenger-volume areas farther away from major hub airports than were served by turboprops. The Regional Jet is a 50 passenger derivative of the Challenger 601, which Bombadier announced earlier in 1989 that it would build. The contract covered design and production of two nacelles, or engine housings, for each of the 53 flight test and production aircraft. LTV Aircraft Products Division received a $36 million contract in September 1989 from Canadair Division of Bombardier, Inc., Montreal, Canada, to produce 106 engine nacelles for 53 Canadair Regional Jet aircraft.
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