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Bombardier (BBD.B) Secures US$7.8B Vistajet Order

 November 27, 2012 01:52 PM

(By Balachander) Canada's Bombardier Inc. (TSE:BBD.B) announced a business aircraft order worth US$7.8 billion by Switzerland-based VistaJet for up to 142 Global jets.

The deal includes firm orders for 56 Global jets and options for a further 86 Global jets at a 2012 U.S. list price value of more than $7.8 billion if all options are exercised.

"By any standard, this is a historic order for Bombardier," said Steve Ridolfi, president, Bombardier Business Aircraft. "Our Global aircraft are perfect for VistaJet's business strategy to deliver the ultimate business jet family to all corners of the world."

VistaJet operates private business jets and is exclusive operator of Bombardier business aircraft.

With a list price value of more than $7.8 billion, this is the single largest transaction placed with any aircraft manufacturer in the history of business aviation, VistaJet said in a statement.

The value of the firm order is roughly $3.1 billion at 2012 list prices.

The new Global aircraft order – comprises 25 Global 5000, 25 Global 6000, and 6 Global 8000 aircraft, with options for a further 40 Global 5000, 40 Global 6000 and 6 Global 8000 jets.

VistaJet said the new aircraft will directly service growth markets (including Russia, China, all of the Middle East and all of Africa), connecting them to the rest of the globe, as well as serving the East and West coast United States for their intercontinental travel needs.

Deliveries of these aircraft will begin in 2014.

Bombardier shares jumped 8.33 percent to trade at $3.38 on Tuesday on the Toronto Stock Exchange.

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