Flexjet gets first Embraer Legacy jet anchoring mid-size program

SAO PAULO, Sept 29 (Reuters) - Flexjet, which offers
fractional ownership and leasing of private jets, is counting on
Embraer's EMBR3.SA new Legacy 450 and 500 for the bulk of a
mid-size business jet program that could grow beyond a quarter
of its fleet, Chief Executive Mike Silvestro said on Tuesday.
Flexjet received its first Legacy 500 this week and expects
four more by the end of the year, Silvestro said in a telephone
interview. Deliveries of the Legacy 450 start in June 2016.
Both Brazil-based Embraer and Flexjet, the second-largest
company selling shares of private aircraft after Warren
Buffett's Netjets, declined to reveal the size of the Legacy
order.
Flexjet turned to the Legacy 450/500 to anchor its mid-size
fleet after Bombardier Inc BBDb.TO suspended development of
its Learjet 85 in January. Flexjet had placed 60 firm orders for
that aircraft.
Silvestro said the Learjet order "remains intact" until
Bombardier gives further guidance, but Flexjet customers are
free to migrate their deposits to other aircraft.
Flexjet already flies smaller business jets, including
"dozens" of Embraer's Phenom 300s, and recently added long-range
Gulfstream aircraft from General Dynamics Corp (NYSE:GD) GD.N .
Silvestro said the Legacy 450/500 will now anchor Flexjet's
move into the mid-size segment, which could eventually make up
"at least 25 percent" of the company's fleet, as it does for the
rest of the industry.
Flexjet's fleet is expected to reach 150 business jets by
the end of the year. The company has placed 207 firm orders with
Bombardier, Gulfstream and Embraer since private investment firm
Directional Aviation Capital acquired a majority stake in 2013.
Including options, the investment from Directional Aviation
could top $8 billion and expand Flexjet's fleet to 445 aircraft.