Bombardier sells Flexjet to investment firm
BOMBARDIER ANNOUNCED today that it has reached a definitive agreement for the sale of Flexjet’s activities to Flexjet, LLC, a newly-created company funded by a group led by Directional Aviation Capital. Total consideration is $185 million US and the completion of this transaction is subject to the approval of all required governmental and regulatory authorities and other customary closing conditions. The transaction for the sale of Flexjet’s activities is expected to close before the end of the year.
In addition, Flexjet, LLC has placed a firm order for 85 business aircraft (25 Learjet 75, 30 Learjet 85, 20 Challenger 350 and 10Challenger 605 jets.) The agreement also includes options for an additional 160 business jets. The transaction for the firm aircraft order is valued at approximately US$1.8 billion based on 2013 list prices. If all the options are exercised, the total value of the order will be approximately US$5.2 billion, also based on 2013 list prices.
“This marks the next step in Flexjet’s evolution. With more than 18 years of experience in the fractional jet ownership services, the organization has developed into a strong, profitable business supported by operational excellence,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. “The sale of Flexjet’s activities is a unique business opportunity that will allow Bombardier to focus on its core business areas. I am confident that under it’s new ownership Flexjet will pursue its growth and diversification, continue to offer an outstanding experience to owners and customers, and will expand its brand globally.
“This order is another very important endorsement for our Learjet and Challenger business jets. We look forward to having our products participate in the growth of Flexjet, LLC’s activities and its customer base,” added Mr. Beaudoin.
Bombardier offers the largest aircraft portfolio in the business jet industry, with aircraft spanning the light, medium, and large business jet categories. The Learjet, Challenger and Global aircraft families are manufactured to exceed all expectations and to address the increasing needs of business jet travelers worldwide.
Learjet 75 aircraft: The Learjet 75 jet features the pioneering Bombardier Vision flight deck with an interior influenced from its bigger stablemate the Learjet 85 aircraft. This jet will soar above the traffic with a maximum altitude of 51,000 ft (15,545 m) and is capable of flying more than 2,000 nm (3,704 km) between New York and Houston.*
Learjet 85 aircraft: The Learjet 85 aircraft lives up to its nomenclature with its sleek Learjet lines, legendary performance, and blends the newest technology to deliver an aircraft that will redefine the midsize segment with the largest Learjet to date. With its stand-up cabin and superior design this jet is targeted to seamlessly fly approximately 3,000 nm (5,556 km) non-stop*, linking New York with Los Angeles, with speeds of up to M0.82 (470 kts 871 km/h). Its Bombardier Vision flight deck provides pilots with the most sophisticated cockpit in its class.
Challenger 350 aircraft: The Challenger 350 jet boasts class-defining performance, a true seats full, tanks full, 3,200 nm (5,926 km) range and will connect New York with Lisbon*. Building upon the legendary segment defining Challenger 300 jet, it features a state-of-the-art cabin that maximises natural light and redefines the man-machine interface, all the while maintaining the performance attributes that have become synonymous with the Challenger aircraft family.*
Challenger 605 aircraft: The revered Challenger 605 jet builds upon the legacy of productivity, quality and reliability of its predecessor, the peerless Challenger 604 jet. Leading its market share segment throughout the world, the Challenger 605 aircraft features one of the widest stand-up cabins of any large category business jet available today and can fly six passengers 4,000 nm (7,408 km) from New York to Anchorage and New York to Lima.*
*Under certain operating conditions