NetJets has signed a firm order with Bombardier
Aerospace for 100 Challenger business jets with options for an
additional 175 aircraft.
The transaction for the firm aircraft
order is valued at approximately US$2.6 billion based on 2012
list prices, but if all the options are exercised, the total value of
the order is approximately US$7.3 billion.
The two companies also signed a long-term
aftermarket support agreement. 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
The combined sale and aftermarket agreement are valued
at approximately $9.6 billion US if all options are exercised.
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.
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
"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."
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
"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 worldwide Customer Services network of
field and support personnel, parts distribution centres and
maintenance facilities. Bombardier will also offer comprehensive
parts provisioning services.
NetJets is a worldwide leader in
private aviation with a fleet of over 700 aircraft worldwide.
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