Investing.com - Financial Markets Worldwide
Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Bombardier to sell 20 business jets to Flexjet, worth $544 mln

Published 2015-11-17, 04:34 p/m
© Reuters. UPDATE 1-Bombardier to sell 20 business jets to Flexjet, worth $544 mln
HON
-
BBDb
-

(Rewrites with comment from Bombardier executive, industry
forecast)
By Allison Lampert
LAS VEGAS, Nov 17 (Reuters) - Bombardier Inc BBDb.TO said
on Tuesday it has agreed to sell 20 of its Challenger 350
business jets to Flexjet LLC in a deal valued at about $544
million based on list prices of the aircraft.
Flexjet, owned by Directional Aviation Capital, is one of
the world's largest private jet travel firms, largely through
its fractional ownership programs, where customers buy a 'share'
in a plane rather than purchasing one outright.
The provisional order, in the form of a memorandum of
understanding, comes as a boost for Bombardier, which in recent
months has seen its order book affected by struggles with its
CSeries line of passenger jets, as well as delays with its new
business jets.
In May, Bombardier scaled back production of its larger
Global 5000 and 6000 business jets because of weaker demand from
markets like China and Russia.
David Coleal, president of Bombardier Business Aircraft,
said weaker demand from emerging markets also impacted sales of
the super-mid sized Challenger, but there was no change in
production rate.
"Those economies affect both products," Coleal said. "This
year we were over-producing the Global and we had the Challenger
rates right."
On Sunday, Honeywell International Inc (N:HON). HON.N published a
forecast that said sales of business jets are expected to slow
next year as weakening economies and simmering political
tensions delay corporate purchases. urn:newsml:reuters.com:*:nL1N3432E

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.