MONTREAL—Transportation giant Bombardier announced it is selling its Flexjet division to a newly created company for US$185-million in a deal that includes orders for as much as $5.2-billion in business jets.
According to Montreal-based Bombardier, it is selling the fractional jet ownership subsidiary to Flexjet, LLC, a new company funded by a group led by investment firm Directional Aviation Capital.
“This marks the next step in Flexjet’s evolution,” Bombardier president and CEO Pierre Beaudoin said in a release about the sale. “The organization has developed into a strong, profitable business supported by operational excellence.”
Bombardier said the deal includes a firm order for 85 business aircraft worth approximately $1.8-billion based on current list prices.
The orders break down to 25 Learjet 75, 30 Learjet 85, 20 Challenger 350 and 10 Challenger 605 jets.
Flexjet, LLC’s order includes options for an additional 160 business jets that could push the total value up to as much as $5.2-billion based on 2013 list prices, according to Bombardier.
Launched in 1995, Flexjet is a tailor-made service that customizes all aspects of private travel.
According to Beaudoin, the sale of Flexjet will allow the firm to focus on its core business areas.
“I am confident that under its new ownership Flexjet will pursue its growth and diversification, continue to offer an outstanding experience to owners and customers, and will expand its brand globally,” Beaudoin said.
The deal is subject to customary regulatory approvals and closing conditions.