October 23, 2013
Nextant Aerospace reached an agreement valued at $202.5 million to convert Travel Management Company’s (TMC) entire fleet of Hawker 400XP business jets to the Nextant 400XTi. The agreement, announced here, calls for the conversion of 50 aircraft, which boosts Nextant’s total commitments for the 400XT/XTi to more than 100. This represents about 20% of the in-service BE 400A/XP fleet, Nextant says.
Nextant President Sean McGeough calls the order an important endorsement of the remanufacturing process. “The market is approaching a tipping point where remanufacturing is now the accepted long-term solution for competitive performance and value,” he says.
The order, which nearly doubles the 400XTi business, calls for Nextant to complete the work over the next five years, pushing backlog into 2018. McGeough says this will enable the company to “level load” its work on the aircraft.
In addition to the TMC orders, Nextant still has about 30 still to deliver to fractional operator and affiliate company Flight Options. The remaining involve a series of retail customers, many of which are international.
Nextant is planning to deliver about 20 aircraft this year, but McGeough says the Cleveland-based company will need to reevaluate production levels with the new order.