Helsinki City Transport seeks leaseback deal for troubled Bombardier trams

Cancellation of EUR 75 million purchase to be negotiated with supplier

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Helsinki City Transport (HKL) has put forward the idea of leasing 40 low-carriage trams from the German tram manufacturer Bombardier instead of buying them. In practical terms this means that HKL would keep in its possession the trams, which have been plagued with technical problems ever since their arrival, but would only pay Bombardier for their use, if and when they are in working order.
      Should Bombardier accept the HKL proposal, it would mean the cancellation of a EUR 75 million deal between the two parties. HKL would hold onto the money, and only pay rent for the use of the trams.
      The parties last negotiated on the fate of the troubled trams on Thursday.
     
Previously HKL has already considered calling off the entire trams deal with Bombardier.
      The vehicles have had technical issues right from the outset and have never served in the Helsinki tram network to their full capacity.
     
"The price level of Bombardier’s own proposal for the leasing arrangements is in turn too high for HKL to accept", the City Public Transport Committee chairman Jessica Karhu (Green League) explains.
      Should Bombardier and HKL not reach an agreement on the price, the issue may next be submitted to the Helsinki District Court.
      In any event, as a last resort, HKL still has the option of cancelling the whole deal, in which case the entire tram series would presumably be returned to the manufacturers in Germany.
      Bombardier Transportation Finland managing director Kenneth Granholm was not available for comment on Thursday.
      If the deal were to be cancelled altogether it would inevitably cause problems for passengers, with fewer trams in service and longer waits between scheduled services.


Previously in HS International Edition:
  Helsinki wants 20-40 new trams early next decade (13.3.2006)
  Helsinki considers calling off low-carriage tram order from Germany (21.3.2007)
  Fault-ridden Helsinki trams will be repaired in Germany on a tight schedule (30.9.2005)
  Helsinki City Transport plans stop-gap purchase of used trams from Germany (7.4.2005)
  Technical problems delay introduction of new tram fleet in Helsinki (21.5.2004)

Links:
  HKL
  Bombardier Transportation

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