For Bombardier, the order marks another major win for its Global family. Bombardier struck its first deal with NetJets – which previously had flown Gulfstream aircraft – in March 2011. That deal included firm orders for 50 Globals.
But NetJets was among a number of multi-fleet Global orders that the Montreal-based aircraft manufacturer has received. In the third quarter of 2012 alone, Bombardier had received three multi-fleet contracts for 19 Globals valued at $1.2 billion, contributing to a 50% increase in Bombardier Business Aircraft’s net firm orders for the quarter. Even before the VistaJet order, Global backlog stretched nearly three years to 34 months. But adding in the Global 7000 and 8000, which are still four years away from service, Bombardier has orders likely spanning over more than a decade.
The boom in Global orders is helping offset Bombardier’s sagging regional jet business, which has been slow going while the company develops the CSeries, as well as its Learjet business, which continues to suffers in the sluggish light- to midsized market.
While Bombardier’s large business jets are currently faring the best among its aircraft lines, Bank of America (BofA) Merrill Lynch Global Research views the order “as positive support for the entire franchise.”
The order also signals the continuing underlying strength of the large-cabin market, says BofA Merrill Lynch analyst Ronald Epstein. RBC Capital Markets analyst Robert Stallard adds that the order is consistent with prevailing sentiments that the business jet environment is “decent to improving for large cabin but still under the cosh for small cabin.” Stallard adds that RBC Capital Markets believes that demand should remain solid for all the airframers in the niche, including both Gulfstream and Dassault.