Bombardier, Cessna Win $9.6B Bizjet Order from NetJets

 - June 12, 2012, 3:50 PM
Bombardier scored more than half of the 425-aircraft order worth $9.6 billion from NetJets. The deal includes a firm order for 75 Bombardier “Challenger 300 series” twinjets and options on 125 more, with deliveries beginning in 2014, and a firm order for 25 “Challenger 605 series” jets and options on 50 more, with deliveries beginning in 2015. The rest of the deal is rounded out with a firm order for 25 Cessna Citation Latitudes and options on 125 more.

NetJets announced yesterday that it placed the largest general aviation aircraft order in history–for up to 425 Bombardier and Cessna jets worth as much as $9.6 billion. The deal includes a firm order for 75 Bombardier “Challenger 300 series” twinjets, and options on 125 more, with deliveries beginning in 2014; a firm order for 25 “Challenger 605 series” jets, and options on 50 more, with deliveries beginning in 2015; and a firm order for 25 Cessna Citation Latitudes, and options on another 125, with deliveries starting in 2016.

NetJets chairman and CEO Jordan Hansell clarified that the Challenger 300-series aircraft will be a derivative “specific to NetJets.” All three aircraft types will be configured as NetJets’ new Signature Series, which “are the first aircraft that NetJets helped design from start to finish,” according to the company, and include “advanced in-flight entertainment systems, quiet cabins and customized seating, lighting and storage features.” According to Hansell, the new jets will serve customers in the U.S. and Europe.

Hansell told AIN that the order “nearly completes” the company’s fleet plans, but when asked if there might be future orders announced in the next year or two, he added, “It’s very possible.”

Comments

Larry Walters's picture

Joe Lombardo COO at the time tried to downplay the loss of NetJets from the Gulfstream bankroll. Seemed like they were a 1/5th or more of all jets coming off the line. I wonder how the new passenger jet is coming along for them?

Chad Trautvetter's picture

Larry,

Gulfstream seems to be doing just fine without orders from NetJets–at the end of March, the company had a $17 billion backlog. And in the first quarter, its revenues were up 20 percent year-over-year to $1.62 billion while profits were up almost 18 percent to $281 million.

After it cancelled lots of orders in late 2009, NetJets orders are no longer a sure thing for aircraft manufacturers. Given this, I can’t see why Gulfstream would want to give big discounts to gain Netjets orders that could potentially evaporate overnight. Gulfstream’s backlog is much more secure with orders for onesies and twosies, since a cancellation would mean only the loss of one or two aircraft instead 25, 50 or more from a NetJets cancellation.

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