Bombardier Sells Fractional Jet Ownership Division

After 18 successful years as Bombardier's fractional jet ownership division, Flexjet officials have announced a definitive agreement for its purchase by a group led by Directional Aviation Capital of Richmond Heights, Ohio, through a newly-formed entity, Flexjet LLC. The transaction for the sale of Flexjet is expected to close by the end of the year. Total consideration is US$185 million

 

With support from its new investors, Flexjet is placing the largest private aviation order in its history valued at approximately $5.2 billion for up to 245 Bombardier business jets. This includes a firm order for 85 business aircraft (25 Learjet 75, 30 Learjet 85, 20 Challenger 350 and 10 Challenger 605 jets) and options for an additional 160 business jets.

 

The transaction for the firm aircraft order is valued at approximately US$1.8 billion based on 2013 list prices. If all the options are exercised, the total value of the order will be approximately US$5.2 billion, also based on 2013 list prices. Aircraft deliveries begin in 2014.

 

"This opportunity marks the evolution of the next generation of Flexjet, placing us in a position to work with an exceptional group led by Directional Aviation Capital, an investment firm focused on our core business, with the resources needed to ensure a strong future powered by the latest technology," says Deanna White, Flexjet president. "Flexjet remains committed to providing owners with exceptional private travel experiences, while maintaining the highest standards of flexibility. We look forward to offering our owners and their guests access to the newest, most advanced aircraft available."

 

"Flexjet is an extremely well-run, profitable business known for its unmatched focus on owner experience and operational excellence," says Kenn Ricci, principal, Directional Aviation Capital. "Our vision for Flexjet is of a luxury brand with a young fleet, the latest technology, custom interiors, and continued industry-defining service. That vision inspired this transaction and landmark order with Bombardier."

 

Flexjet will continue to be run as an independent brand. The company is reporting a 96% increase of new fractional and jet card sales in January to June 2013 compared to the same period in 2012. In the first six months of this year, sales of new fractional shares increased a notable 112%, while new jet card sales grew a solid 68%, according to Flexjet figures. 

 

Based in Richardson, Texas, Flexjet first entered the fractional jet ownership market in 1995, and now offers whole aircraft ownership and management, fractional jet ownership, jet cards, and charter brokerage services. 

 

Flexjet's fractional program fields an exclusive family of Bombardier business aircraft – with an average age of approximately six years – including the Learjet 40 XR, Learjet 45 XR, Learjet 60 XR, Challenger 300 and Challenger 605 business jets.