Bombardier records biggest ever order worth $7.3bn
Bombardier also announced a long-term aftermarket support agreement with NetJets. The transaction for the firm aircraft order is valued at approximately US$2.6 billion based on 2012 list prices.
If all the options are exercised, the total value of the order is approximately US$7.3 billion, also based on 2012 list prices. The aftermarket agreement is for a term of up to 15 years. Assuming certain aircraft usage projections and a 15-year term per firm aircraft, it is valued at up to US$820 million. If all options are exercised, the aftermarket agreement is valued at up to US$2.3 billion. The combined sale and aftermarket agreement are valued at approximately US$9.6 billion if all options are exercised.
“We are very proud that, once again, NetJets has selected Bombardier aircraft to grow and support the expansion of its fleet worldwide,” said Steve Ridolfi, President, Bombardier Business Aircraft. “Our Challenger 300 Series and Challenger 605 Series jets are worldwide leaders in their respective segments. These aircraft are renowned for their reliability, performance and wide cabin comfort. We are convinced that the Challenger jets will complement NetJets’ existing fleet perfectly. After selecting our Global aircraft last year, this new order is a fantastic endorsement of Bombardier’s large cabin product portfolio.”
The firm order comprises 75 Challenger 300 Series jets (above), with deliveries scheduled to begin in 2014, and 25 Challenger 605 Series jets, with deliveries scheduled to begin in 2015. The options comprise 125 Challenger 300 Series and 50 Challenger 605 Series jets. NetJets’ new Challenger aircraft will feature a NetJets configuration and will be operated in North America and Europe.
“We are very impressed with Bombardier’s overall product portfolio,” said Jordan Hansell, Chairman and Chief Executive Officer, NetJets Inc. “The Challenger 300 Series and Challenger 605 Series jets will be an excellent complement to our existing mid cabin capabilities and overall fleet that are unmatched in private aviation. We are particularly appreciative that Bombardier has been responsive to our needs in bringing a NetJets configuration for our owners.”
The aftermarket agreement will see Bombardier provide scheduled and unscheduled line and heavy maintenance support for NetJets' Challenger 300 Series and Challenger 605 Series aircraft. In addition, their Challenger aircraft fleet will be enrolled in Bombardier's Smart Services programs, the leading cost-per-flight-hour solutions for Bombardier aircraft.
“The quality of Bombardier products is reinforced by the value our aftermarket programs and support teams deliver every day,” said Éric Martel, President, Bombardier Customer Services & Specialized and Amphibious Aircraft. “Our team is looking forward to working together with NetJets to operate their Challenger aircraft fleet as efficiently and cost-effectively as possible.”
Through its long-term service agreement with NetJets, Bombardier will provide a host of parts and maintenance services, including scheduled and unscheduled line and heavy maintenance support for the Challenger jets through its superior, worldwide Customer Services network of field and support personnel, parts distribution centres and maintenance facilities. Bombardier will also offer comprehensive parts provisioning services to the world's largest business aircraft operator.
NetJets is the worldwide leader in private aviation with a fleet of over 700 aircraft worldwide. The company’s fleet plan is centered on providing NetJets Owners with non-stop capabilities around the globe in the industry’s most advanced business aircraft.
On March 1, 2011, NetJets placed a firm order for 50 Global business jets, with options for an additional 70 Global aircraft. The transaction for the firm order was valued at approximately $2.8 billion US based on list prices. The firm order included 30 Global 5000 and Global 6000 aircraft, with final deliveries scheduled to begin in the fourth quarter of 2012. The sale also included 20 firm orders for Bombardier’s newly launched Global 7000 and Global 8000 jets. Deliveries of these aircraft will begin in 2017. At a total list price exceeding $6.7 billion US, NetJets’ order was the largest aircraft purchase agreement in the history of private aviation.
