These are deals worth hundreds of millions: Bombardier’s newest business jet will go to the operator of the world’s largest private aircraft fleet, while the Airbus A220 will add an airline to its client list.
NetJets will be the first fleet operator to bring Bombardier’s Global 8000 into service with the purchase of four aircraft worth a contract worth US$312 million. The company, owned by Berkshire Hathaway, a conglomerate run by billionaire Warren Buffett, will operate 24 of these new planes, replacing the Global 7500s already ordered.
“Once we sell all of our inventory in the United States by 2023, we will continue to invest to continue our expansion,” said Patrick Gallagher, president of sales, marketing and services at NetJets.
The Global 8000 can travel 8,000 nautical miles (14,800 kilometers), 500 more than its smaller brother. The aircraft can fly directly between Singapore and Los Angeles, as well as cities such as Dubai and Houston.
The plane will sell for 78 million US, or 3 million more than the global 7500. It is assembled in Toronto and its interior finishing is done in Montreal.
“We are encouraged by this decision [de NetJets] RBC Capital Markets’ Walter Spracklin said in a note that it indicated client interest in the Global 8000, to replace eight Global 7500s. We estimate that approximately 210 global 7500s will be converted by 2025, indicating a significant revenue opportunity for the aftermarket segment. »
A new tool
Bombardier’s new flagship aims to compete with aircraft in the large-cabin segment such as Gulfstream’s G700 and Dassault’s Falcon 10X. The pandemic has given a boost to business aviation, as the super-wealthy and the more affluent have opted for private transport. This encourages companies like NetJets, which typically rent planes for more than US$1,000 an hour, or offer seats on jets to buy new jets.
Although levels are now not at the peak of the health crisis, the level of activity worldwide is higher than it was in 2019 before the arrival of COVID-19.
Another customer
For its part, Airbus A220 – ex-Bombardier C Series – continues to gain orders with the sale of six A220-300s to Croatia Airlines. At list prices, the contract is worth around 550 million US. However, airlines usually get discounts.
In a sign that the effects of the pandemic appear to be largely behind air carriers, the new deal will increase the number of net orders received by the A220 since the start of the year to 126, according to the most recent data available.
The device is assembled in Mirabel, Laurentians, where the main assembly line is located, as well as in Mobile, Alabama.
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- 16
- Number of airlines that have received A220s so far
Source: Airbus
- 5000
- Number of Bombardier private jets in service worldwide
Source: Bomber
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