NetJets Orders 100 Bombardier Jets with Options for 175 More

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 billion.

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.

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 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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