- Bombardier (TSX:BBD.A) is unveiling NetJets, one of its longtime clients, as the previously announced anonymous buyer of 12 Challenger 3500 aircraft in December
- The transaction is valued at US$326.4 million based on list prices at the time, and could reach up to US$6 billion if NetJets exercises its options for 232 additional Challenger 3500s
- Bombardier designs, builds, modifies and maintains high-performance aircraft for business and defence
- Bombardier stock has added 3 per cent year-over-year, and 6.44 per cent since 2019
Bombardier (TSX:BBD.A) is unveiling NetJets, one of its longtime clients, as the previously announced anonymous buyer of 12 Challenger 3500 aircraft in December 2023.
The transaction is valued at US$326.4 million based on list prices at the time, and could reach up to US$6 billion if NetJets exercises its options for 232 additional Challenger 3500s in subsequent years. Deliveries for the initial dozen jets are scheduled to begin in the second half of 2025.
Built on the industry’s most delivered super-midsize platform, the Challenger 3500 jet offers a range of 6,297 kilometres and the most technologically advanced cabin in its class. Features include:
- Bombardier’s patented Nuage seats, the first new seat architecture in business aviation since the 1990s
- An industry-leading dispatch reliability of more than 99.8 per cent
- The lowest direct operating costs in its class
- Several industry-firsts, including voice-control, a 4K entertainment system, wireless chargers suited to any device, and an Environmental Product Declaration detailing the aircraft’s environmental footprint over its lifecycle
More than 900 Challenger 300 series business jets are in service worldwide, with Bombardier boasting a fleet of approximately 5,000 aircraft in service across its Global and Challenger families.
The news coincides with the aviation stock’s reassertion of its 2020-2025 objectives, including posting more than US$9 billion in revenue, more than US$1.625 billion in adjusted EBITDA, and more than US$900 million in free cash flow, and a net leverage ratio of 2x to 2.5x, with its sights set on increasing shareholder value through the second half of this decade.
Management insights
“The Challenger 3500 jet continues to impress with its ultimate combination of refined cabin experience, proven reliability and top performance, perfectly aligning with the needs of NetJets’ discerning client base,” Éric Martel, Bombardier’s president and chief executive officer, said in a statement. “We couldn’t be prouder to see the Challenger 3500 business jet join the NetJets’ fleet as we write the next chapter of our long-term collaboration.”
About Bombardier
Bombardier designs, builds, modifies and maintains high-performance aircraft for business and defense.
Bombardier stock (TSX:BBD.A) last traded at C$62.80 per share. The stock has added 3 per cent year-over-year, and 6.44 per cent since 2019.
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