Eskilstuna, Sweden-based Nord-Flyg launched a Q400 PF (Package Freighter) program with two previously owned aircraft that will be reconfigured by Cascade Aerospace of Abbotsford, Canada.

Nord-Flyg said it also signed a letter of intent to acquire three additional Q400s from a third party for conversion. The first is scheduled to be delivered to Nord-Flyg in the last quarter of 2008 for its overnight package delivery services in Europe. Bombardier said it welcomed the announcement.

"The Q400 PF aircraft will fill a gap because there is no other turboprop in the freight business that offers a 360-kt. (667 km.) speed and can comfortably fly more than the 700 nm. (1,296 km.) required for our operations," said Nord-Flyg President Ulf Darenius, who estimated the airline will save $1.8 million in fuel charges "based on an annual utilization of 1,200 hours, compared to a jet of similar size." Airport and airway charges are anticipated to be "30% less than those faced by the jet."