Bombardier Spins Off Flexjet, Gets $5.2 Billion Order
Bombardier, the world’s only manufacturer of both trains and planes, announced it will spin off its Flexjet unit and sell it to Flexjet LLC, a newly-created company. In addition, the newly-formed company said that it has placed a firm order for new Bombardier aircraft.
The purchase of the Flexjet unit, which is valued at $185 million, was led by Directional Aviation Capital, an investment firm that focuses on private aviation. After the closing of the deal, which is subject to government and regulatory approval and other customary closing conditions, Flexjet will continue to operate as an independent brand.
Flexjet LLC’s order is for 85 Bombardier aircraft, valued at approximately $1.8 billion. It includes 25 Learjet 75, 30 Learjet 85, 20 Challenger 350, and 10 Challenger 605 jets. In addition, the agreement includes options for an additional 160 business jets.
If all the options are exercised, the total value for the 245 aircraft will be approximately $5.2 billion, the largest private aviation order in history.
(Photo: Accura Media Group)