$1.7 Billion Bombardier Private Jet Order Could Be New Entrant

Forbes

01-07-2025

An order from an unnamed, first-time customer for $1.7 billion in private jets last night could portend a new player in the global business aviation market.
The firm order, announced by Bombardier, includes 50 of its business jets and a services agreement.
Options for up to 70 more private jets could push the total value to $4 billion.
A Bombardier Global 7500 landing at the Barcelona-El Prat airport in Barcelona, Spain, on May 27, ... More 2024. Last night the Canadian OEM announced an order from a new, unamed customer for 50 of its business jets. (Photo by JoanValls/Urbanandsport /NurPhoto via Getty Images)
Initial deliveries are slated for 2027.
The order is an unspecified combination of its Challenger and Global lines.
The Challenger family comprises the super-midsize Challenger 3500 and the Challenger 650, an entry-level large-cabin jet.
The Global family includes several models, including the most recent addition, the Global 8000, which can fly nonstop between the Middle East and Los Angeles, Sao Paulo, Brazil, or Singapore to San Francisco.
While range varies based on wind, weather conditions, the number of passengers, and luggage, the Challengers are typically best suited for flights of up to six hours.
The Challengers seat eight to 10 passengers; customers can specify their preferred configurations.
While the Globals can seat up to 19 passengers, standard layouts accommodate up to eight passengers when converted to beds for flights that can range up to 17 hours.
It's not unusual for OEMs to announce orders without disclosing the customer's identity.
Similar orders announced by Bombardier were actually for VistaJet (revealed in 2021) and NetJets (in 2024).
Bombardier President and CEO Eric Martel said in the announcement, "This significant order underscores the competitive advantage Bombardier's full scope of products and services brings to customers throughout the entire aircraft lifecycle, from design to delivery, then throughout the in-service journey," adding, "We build trust each day with each customer thanks to dedicated team members around the world who ensure their consistent satisfaction. Our more than 18,000 Bombardier employees are proud to welcome this new, important customer to our family."
Flexjet, another large player, already operates Challenger 3500 derivatives.
The order is likely to be from an entity that will offer fractional ownership or charter programs.
However, most charter operators utilize aircraft they manage for owners and don't buy new jets directly from manufacturers.
The few exceptions include Qatar Executive (which operates a fleet of Gulfstream G650s and G700s) and a sister company to Qatar Airways, as well as VistaJet, part of Vista Global.
So, who's buying?
Earlier this year, Saudi Arabia said it would open its domestic market to foreign operators as part of Vision 2030. Aviation is a key part of the plan. The government there is backing the launch of Riyadh Air, which will offer flights to over 100 international destinations.
To the east, in India, Tata Group-backed Air India has over $70 billion in orders with Airbus and Boeing.
Emirates has dipped its toes into private aviation, but last year, executives said it was not interested in taking the plunge.
The regional private jet market has long been constrained by delays in obtaining flight approvals, which defeats the purpose of flying privately, as well as barriers to ownership and even facilities to serve private jets.
However, more development in secondary destinations that are not easily reached by scheduled airlines, an increasing population of younger ultra-high-net-worth families, and heightened security concerns could make the time ripe for a big bet on private jets.
Whether it's an entity already involved in aviation, private aviation, or entirely new for the sector, well, we will have to wait to find out.
Bombardier noted, "The customer has elected to remain anonymous before unveiling their offering in the marketplace."