Volvo Aero receives order worth USD 250 million

VOLVO AERO RECEIVES ORDER WORTH USD 250 MILLION Volvo Aero has been awarded a five-year engine maintenance contract by Continental Airlines, the major US-based airline. The total value of the contract, which commences on January 1, 1999, is USD 250 million. The contract calls for Volvo Aero Engine Services (VAES), a Volvo Aero subsidary based in Bromma, outside Stockholm, to perform the repair and overhaul of Continental's 160 JT8D-200 engines fitted to the airline's MD80 fleet. "This is one of the largest maintenance support contracts that an American air carrier has placed outside the US and we are delighted that such a large and well-known airline has placed such trust in us", says Ragnar Norbäck, president of VAES. "By selecting Volvo, Continental has demonstrated its commitment to quality and its conviction that this is the right approach to long-term cost reduction. Viewed from this perspective, Volvo is the competitive option. "VAES has annual sales of some USD 160 million and this Continental contract will make an important contribution to our ambitious growth targets", says Ragnar Norbäck. VAES currently has a total of 500 employees which is expected to increase significantly through this and other contract successes. November 13, 1998 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/11/13/19981113BIT00070/bit0001.doc http://www.bit.se/bitonline/1998/11/13/19981113BIT00070/bit0002.pdf