MONTREAL, QUEBEC--(Marketwire -06/11/12)- Editors note: There are two photos associated with this press release.
Today, just over one year after the largest business aircraft sale in its history, Bombardier Aerospace surpassed that record, announcing a firm order from NetJets Inc. for 100 Challenger business jets with options for an additional 175 aircraft. Bombardier also announced a long-term aftermarket support agreement with NetJets. The transaction for the firm aircraft order is valued at approximately $2.6 billion US based on 2012 list prices. If all the options are exercised, the total value of the order is approximately $7.3 billion US, 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 $820 million US. If all options are exercised, the aftermarket agreement is valued at up to $2.3 billion US. The combined sale and aftermarket agreement are valued at approximately $9.6 billion US 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, 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 Eric 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.
Challenger 300 Series jet: The Challenger 300 Series jet offers transcontinental range and superior long-range cruise speed with nine passengers. It can fly from Los Angeles to New York City(i), and its superior airfield performance allows the aircraft to operate out of 5,000-foot (1,524-m) runways with ease(i). The Challenger 300 Series business jet offers the best performance and value amongst its competitors and has consistently exceeded customer expectations. With over 340 Challenger 300 jets in service, it is the market leader amongst its peers.
Challenger 605 Series jet: The Challenger 605 Series jet builds on the quality and reliability of its predecessor, the acclaimed Challenger 604 jet, leading its market share segment throughout the world. The Challenger 605 Series jet can whisk twelve passengers three crew from New York City to London non-stop(i) in the widest stand-up cabin of any large category business jet available today. There are over 850 Challenger 600 jets in service worldwide, including over 170 Challenger 605 jets, accounting for over 50 per cent market share worldwide for its segment category.
About NetJets ® Inc.
NetJets ® Inc., a Berkshire Hathaway company, is the worldwide leader in private aviation with the largest and most diverse private jet fleet in the world. NetJets began in 1964 as the first aircraft charter and management company in the world. In 1986, NetJets pioneered the concept of fractional aircraft ownership -- offering individuals and businesses all of the benefits of whole aircraft ownership and more, at a fraction of the cost. Today, NetJets offers a full range of private aviation solutions through its programs in North America and Europe, including NetJets Share, NetJets Leases and the Marquis Jet Card®, which provides access to NetJets through a 25-25 HOURS AT A TIME. The North America program is managed and operated by NetJets' subsidiary NetJets Aviation, Inc., and the European program is managed and operated by NetJets Transportes Aereos, SA, a Portuguese/EU Air Carrier. In the United States, NetJets also offers aircraft management and on-demand charter services through its subsidiary, Executive Jet® Management, Inc. Subject to obtaining relevant regulatory approvals, NetJets will also offer aircraft management and charter services in China through NetJets China Business Aviation Limited, a joint venture between NetJets and a consortium of Chinese investors. The NetJets companies offer worldwide flight operations. More information on NetJets, NetJets Europe, the Marquis Jet Card, and Executive Jet Management is available at www.netjets.com.
Bombardier is the world's only manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.
Bombardier is headquartered in Montreal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2011, we posted revenues of $18.3 billion USD. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
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(i)Under certain operating conditions
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