The sudden collapse in August of fractional ownership startup Jet Republic probably convinced anyone in Europe who still failed to accept that business aviation’s bubble had burst.
VistaJet Holding SA
Bombardier today reported $4.6 billion in revenues for its fiscal third quarter (ending October 31), which is on par with year-ago earnings. However, third-quarter revenues at Bombardier Aerospace fell from $2.3 billion last year to $2.1 billion this year due to fewer aircraft deliveries, namely a 42-percent drop in business jet shipments. During the quarter, Bombardier delivered 33 business jets versus 57 last year.
Bombardier is under commercial pressure to launch a new flagship business jet to rival the Gulfstream G650 as the world’s industry descends on what is the key event for the leading large-bizjet-buying region. With its significant range advantage, the G650 looks to be set to beat Bombardier’s leading model–the Global Express XRS– hands down when it enters service in 2012.
The business aircraft charter market is down by at least 15 percent this year, but VistaJet (Stand E540) expects to achieve 20-percent growth for 2009, and it wants to establish a more permanent presence here in the Middle East through a local partner that would help it to connect with prospective charter clients. It is investigating options to expand into markets such as Saudi Arabia and Egypt.
Jet Republic, which last year announced a plan to buy up to 110 Bombardier Learjet 60XRs and launch a fractional-share business in Europe, has suspended operations at its Portugal subsidiary. As a consequence, Bombardier “terminated its firm and conditional order purchase agreement with Jet Republic.” The company’s first Learjet 60XR was to have been delivered in October.
Bombardier Aerospace announced today that it has “terminated its firm and conditional order purchase agreement with Jet Republic.” The cancellation removes 25 firm orders for Learjet 60XRs worth $340 million from Bombardier’s backlog. Jet Republic launched a European fractional-share company last year with an order for 110 Learjet 60 XRs and financing by Austria’s Euram Bank. Deliveries of the first airplanes were to have begun this October.
Bombardier Aerospace has named Indianapolis-based Comlux Completion USA an authorized AOG/line maintenance facility. The authorization allows Comlux to perform work on the airframer’s Learjet, Challenger and Global series. The company’s 44 aircraft maintenance technicians, 12 support personnel and 24 completions employees provide both maintenance and VIP cabin completion services out of Comlux’s 47,000 sq ft of dedicated hangar space.
European fractional ownership provider Jet Republic is now trying to sell whole midsize business aircraft. Under its new Free to Fly program announced at the end of June, the company is offering Bombardier Learjet 60XRs for $13.5 million, at what it claims is a discount of more than $1 million off the full list price of $14.6 million.
New private jet fractional ownership partner Jet Republic yesterday joined Bombardier Aerospace’s Offset Program for its initial fleet of 25 Learjet 60XRs that are set to be delivered over the next two years, starting in October. Jet Republic could eventually take delivery of up to 110 Learjet 60XRs if it exercises all of its options.
VistaJet is slowing the implementation of its ambitious growth plans in the charter market but insists that its ambition to solidify its position as the number two service provider outside North America still stands. This year the company will take delivery of less than half of the 12 to 14 new aircraft it had been due to take, and it has adjusted its target of having a 100-strong fleet of jets by 2012 operating some 80,000 flight hours.