Bombardier closed the sale of its fractional business jet ownership subsidiary, Flexjet, to the newly created Flexjet LLC, the Canadian airframe manufacturer said Thursday, Dec. 5.
Q400 NextGen. Photo, courtesy of Bombardier.
Flexjet LLC is funded by a group led by private business aviation investment firm Directional Aviation Capital. The transaction was announced in September for $185 million and has now received government and regulatory approval.
Under the agreement for the sale, Flexjet LLC placed a firm $2.4 billion order for 115 business jets (25 Learjet 75, 60 Learjet 85, 20 Challenger 350 and 10 Challenger 605 jets). The agreement includes options for 150 additional business jets, which would increase the total value of the order to $5.6 billion if confirmed.
Also on Thursday, Nantong Tonghzhou Bay Aviation signed a letter of intent (LOI) to acquire 30 Q400 NextGen turboprop aircraft. The Q400s were acquired for Sutong Airlines, a regional carrier based in China's Jiangsu province, which Nantong plans to begin operating in 2015.
“The Q400 NextGen turboprop is ideally-suited to service China’s vast geography, delivering unbeatably low operating costs, superb reliability to support high utilization operations, high payload capability and excellent short-haul range. We welcome Nantong Tongzhou Bay Aviation and Sutong Airlines as it works to bring much needed connectivity to the Jiangsu province’s markets,” said Andy Solem, vice president of sales for China and North Asia at Bombardier.