* Bombardier says it faces no penalties from Swiss railway
* Bombardier says delivery delay caused by design changes
* Delivery of 59 trains delayed to 2015-19, from 2013-19
TORONTO, March 18 Bombardier Inc, the
world's biggest train maker, denied on Monday a Swiss newspaper
report that said it will have to pay at least 460 million Swiss
francs ($490 million) to Swiss railway group SBB for late
delivery of 59 double-decker trains that were ordered three
The newspaper, Der Sonntag, said on Sunday that Bombardier
faced penalties ranging from 460 million to 708 million francs,
depending on how long deliveries to Swiss railway group SBB were
"None of this is accurate," said Bombardier spokesman Marc
Laforge. The Montreal-based company is not facing any penalties
for the order, he said.
Laforge said delays were caused by a court challenge to SBB
by advocacy groups that argued that a redesign was needed to
make the trains accessible to the disabled. SBB successfully
appealed a lower court ruling last month.
While awaiting the court decisions, SBB worked with
Bombardier to make modifications to the trains, and the railway
will cover those costs, Laforge said. He declined to detail that
expense or any other contract terms.
The Swiss railway ordered 59 trains for 1.9 billion francs
in May 2010, with service expected to start in December 2013.
SBB said last year that deliveries would be pushed out by two
years, to 2015, in part due to modifications to accommodate
"From our conversation with the company, the delay was due
to the result of a scope change by the customer, which triggered
a design change and therefore a push-back in the delivery
schedule," said BMO Capital Markets analyst Fadi Chamoun.
"Bombardier management stated that it is not responsible for
any penalties. It appears to us that the newspaper article was
speculative at best."
Train deliveries will start in December 2015, two years
later than planned, and run through to the end of 2019, Laforge
Shares of Bombardier were down 6 Canadian cents at C$4.22 on
the Toronto Stock Exchange early on Monday afternoon.