Flexjet saw a 60-percent surge in new fractional aircraft sales and a 57-percent jump in jet card sales last month year-over-year, the company announced yesterday. For the entire year, Flexjet’s fractional share sales rose 10 percent, while jet card sales climbed 29 percent over 2012. After 18 years under Bombardier Aerospace’s wing, Flexjet was acquired last month by Directional Aviation Capital.
Bombardier Aerospace delivered 180 business jets last year, up one from 2012. However, the Canadian aircraft manufacturer missed its 2013 guidance by 10 business airplanes, “mainly due to the transition from the Learjet 40XR and Learjet 45XR to the Learjet 70 and Learjet 75, which entered service in the fourth quarter.” The company originally expected deliveries of these revamped light jets to start in the third quarter. It shipped 29 Learjets, 89 Challengers and 62 Globals last year, compared with 39 Learjets, 86 Challengers and 54 Globals in 2012.
Flexjet is offering two limited-time offers–25 Challenger 300 upgrade hours and “60 for 50”–to spur fractional jet ownership sales in its Learjet and Challenger programs. Until December 31, new and existing Flexjet owners purchasing a one-sixteenth share in a Learjet 40XR, 45XR or 60XR will have the opportunity to upgrade 25 of their annual allocated hours, at their same Learjet hourly occupied rate, to a Challenger 300.
Bombardier closed the sale of Flexjet to Flexjet LLC, a newly created company funded by Directional Aviation Capital, last week, though aircraft are still being transferred to the new owner. When the deal was announced on September 5, the acquisition price was $185 million; following “purchase price adjustments,” it is now estimated at $195 million, including the “assumption of an estimated $70 million of customer advances” by Directional’s Flexjet LLC.
Flexjet and Abercrombie & Kent introduced “Passport to the World,” the first completely private jet experience circumnavigating the globe. For $1.5 million, guests will travel for two weeks aboard a Challenger 605 operated by Jet Solutions to seven landmark destinations and get “exclusive access to hidden wonders that are out of reach to the rest of the world,” ranging from the Forbidden City to the Taj Mahal. It includes a Japanese tea ceremony in Kyoto and a private opening of Istanbul’s Hagia Sophia, off limits to the public.
The fractional market has undergone severe contraction this year, with CitationAir nearly out of the business of commercial business jet operations, Bombardier’s Flexjet sold to Flight Options parent Directional Aviation Capital and Avantair forced into
Bombardier released its third quarter 2013 financial results this morning with most of its numbers showing a slight decline in comparison with the same period last year. Revenues for the corporation as a whole totaled $4.1 billion at the end of the quarter on September 30, compared to $4.2 billion for the same fiscal quarter last year. Bombardier Aerospace accounted for $2 billion in the quarter, compared to $2.3 billion last year.
Learjet 40, Learjet 45, Challenger 300, Challenger 604, Challenger 605 and Global operators now have the opportunity to increase their control over maintenance costs significantly, with Bombardier Aerospace’s introduction of evolved maintenance intervals for those platforms.
Constant Aviation is expanding its national sales force and maintenance offerings through its three facilities in Cleveland, Ohio; Birmingham, Ala.; and Las Vegas, Nev. Constant now offers maintenance services on the Embraer Phenom 100 and 300 and Legacy 600 and 650; the Cessna Citation X; all Hawker 800 series; Beechjet/Hawker 400 series; and Bombardier Challenger 300 jets as well as the Piaggio Avanti and King Air turboprops. Offered services include airframe, engine and avionics repair, interior refurbishment and parts distribution.
Making a corporate jet work for an individual or a corporation is all about the math. And we all know that the purchase price of an aircraft is simply the price of entry. Bombardier (Booth No. N5731) announced at NBAA 2013 the launch of its Max maintenance program for Challenger 605, designed to reduce direct maintenance costs to owners and operators and increase dispatch availability by extending required maintenance intervals by as much as 50 percent.