Bombardier and Airbus A220 expand their order books

These are contracts that run into the hundreds of millions: Bombardier’s newest business jet will go to the operator of the world’s largest private aircraft fleet, while Airbus’ A220 adds a airline to its client list.

NetJets will be the first customer to put into service the Bombardier Global 8000 – presented last May – by purchasing four aircraft, a contract valued at 312 million US. The company, which belongs to Berkshire Hathaway, the conglomerate run by billionaire Warren Buffett, will operate 24 of these new aircraft by converting all of its Global 7500s already ordered.

“Having fully sold our inventory in the United States through 2023, we continue to invest in order to continue our expansion,” said Patrick Gallagher, president of sales, marketing and services at NetJets.

The Global 8000 can travel 8,000 nautical miles (14,800 kilometers), 500 more than its little brother. The aircraft can fly direct between cities like Singapore and Los Angeles as well as Dubai and Houston.

This aircraft sells for 78 million US, or three million more than the Global 7500. It is assembled in Toronto and its interior finishing is done in Montreal.

“We are encouraged by (NetJets’) decision to convert eight Global 7500s, which demonstrates customer interest in the Global 8000,” said Walter Spracklin of RBC Capital Markets in a note. We estimate that approximately 210 Global 7500s can be converted by 2025, representing a significant revenue opportunity for the aftermarket segment. »

New tool

Bombardier’s new flagship aims to compete with aircraft in the large-cabin segment, such as Gulfstream’s G700 and Dassault’s Falcon 10X. The pandemic has given a boost to business aviation as the ultra-rich and well-heeled have opted for private transportation to get around. This incentivizes companies like NetJets, which rent aircraft at hourly rates typically above US$1,000 or offer seats on jets, to buy new jets.

While levels are no longer at the peaks seen at the height of the health crisis, the level of activity globally remains higher than it was in 2019, before the arrival of COVID-19.

another customer

For its part, the Airbus A220 – formerly the Bombardier C Series – continued to accumulate orders with the sale of six A220-300s to Croatia Airlines. According to list prices, the value of the contract is approximately 550 million US. However, airlines usually get discounts.

A sign that the effects of the pandemic seem to be increasingly behind the air carriers, this new contract increases the number of net orders obtained by the A220 since the start of the year to 126, according to the most recent data available.

The device is assembled in Mirabel, in the Laurentians, where the main assembly line is located, as well as in Mobile, Alabama.