With a record setting order from VistaJet earlier this week for 56 new Bombardier Global aircraft with 86 options, worth more than $7.8 billion at list prices, it appears that a new leader has emerged in the intercontinental business jet market. This is being called the single largest transaction ever in general aviation, with first deliveries starting in 2014.
One of the happiest people on the planet is Steve Ridolfi, President of Bombardier Business Aircraft who in characteristic Canadian understatement said “By any standard, this is an historic order for Bombardier.”
The new orders will be for 25 Global 5000s with 40 options, 25 Global 6000s with 40 options, and 6 Global 8000s with 6 options. The company is focusing on Russia, China, the Middle East and Africa as growth markets, as well as the East and West coasts of North America for intercontinental travel.
But this isn’t the first large order for Bombardier for the Global. In June of this year, Bombardier received an order from NetJets, which operates competing Gulfstream aircraft, for a then record $7.3 billion portion of a $9.8 billion order for new aircraft. With these two massive orders, and a large backlog, the high end of Bombardier’s business jet line appears to be doing quite well, and with these two massive orders, Bombardier appears to have taken market leadership from Gulfstream in the most profitable segment of the business jet market, large intercontinental jets.
This certainly helps Bombardier in the short-term, as the market for medium sized jets continues to struggle for all players, including its Learjet products. While a full recovery for business jets has not yet arrived, the market in developing countries, which need intercontinental lift, is providing virtually all of the industry growth in 2012.