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Bomardier sees settlement in MÁV brake case before arbitration

Canada's Bombardier could reach an agreement with Hungarian state-owned railway company MÁV on a dispute over brakes on suburban rail vehicles before MÁV takes the case before an arbitration court, István Szini, Bombardier Transportation's representative in Hungary, told MTI at the InnoTrans railway trade show in Berlin on Wednesday.

MÁV is taking Bombardier to court for refusing to accept brake repairs under warranty on Talent rail vehicles delivered in 2007, Econews reported a week ago.

A compromise can be reached that ensures the maintenance services MÁV expects while solving the burden of costs between the two companies, Szini said, adding that talks between the companies is underway.

Canada's Bombardier has nearly completed the first TRAXX locomotives for MÁV-Trakció, the traction unit of state-owned Hungarian railway company MAV and the engines should be delivered for testing by the end of the year, Szini said.

MÁV placed an €80 million order for 25 Bombardier TRAXX locomotives with an option to buy a further 25 in November 2008.

The locomotives could get the necessary permits to start operating by the middle of 2011,

Szini said. The first 25 locomotives will take two years to make, he added.

Szini said orders were down at both of Bombardier's bases in Hungary.

Bombardier is the majority-owner of a manufacturing and maintenance base in Dunakeszi, near Budapest, and it owns all of a bogie frame factory in Mátranovák (NE Hungary).

Bombardier plans to expand the service area of the base in Dunakeszi to include all of Central Europe in the long term, but this will require the support – in the form of assets as well as a strategic decision – of Bombardier's partner in the joint venture, MÁV,  Szini said. The return of growth to the global market is also a condition for the plan, he added. (MTI-Econews)