Friday, January 27, 2006

Bombs away - again

A contractor and an engineering firm are suing each other over problems with DFW Airport's Skylink train. Joining the fun is Bombardier, which is suing the contractor for
an unspecified amount of "additional costs, expenses and damages" that Bombardier said it incurred from not being able to use the bridge to test the Skylink train, according to court documents.
Bombardier, you'll recall, is the company that designed and built the Acela trainsets and pre-emptively sued Amtrak in November 2001, seeking $200 million in damages, before the final order was even delivered.

Many railfans found Bombardier's claim credible: that Amtrak ordered the Acelas four inches too wide to allow full active tilt over a portion of their route. Tilt is a passenger-comfort feature, not a safety feature; it allows trains to pass through curves at speeds that might otherwise be disorienting.

The suit was settled with no finding as to who was responsible for the extra four inches. Let me repeat that: no finding.

Recall also that Bombardier bought the Adtranz railcar maker from DaimlerChrysler in April 2001 for $725 million--then turned around the very next year and sued DCX for $1.4 billion claiming that the seller misrepresented the value of Adtranz's assets. (Wonder what part of "due diligence" BBD didn't understand.) This action was settled in 2004 by shaving $209 million off the sale price.

And by then, Bombardier could probably use the money. This chart shows the price of Bombardier's Class B shares over the last 5 years. Check here for their current price.

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