Bombardier Aerospace has announced a firm order from NetJets Inc. for 100 Challenger business jets with options for an additional 175 aircraftWritten by Dan Comand Monday, 02 July 2012 17:57
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 $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’ newChallenger 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 Servicesprograms, 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.
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