June 25, 2012
NetJets’ announced orders and options for up to 450 business jets worth nearly $10 billion are bringing substantial long-term aftermarket business to both Bombardier and Cessna, along with their suppliers.
Bombardier and Cessna each received long-term aftermarket support agreements from NetJets for the newly ordered aircraft. Bombardier’s aftermarket deal could generate up to $820 million in additional business over 15 years for the firm orders alone. That agreement covers scheduled and unscheduled maintenance for both the newly ordered Challenger 300 series and 605 aircraft. The aircraft will be enrolled in Bombardier’s Smart Service cost-per-flight-hour program and the accord also provides parts provisioning services.
Likewise, Cessna is supporting the newly ordered Citation Latitude aircraft at its network of Citation Service Centers, continuing the ongoing service relationship between Cessna and NetJets.
Additionally, engine-makers GE Aviation and Pratt & Whitney Canada (P&WC) last week detailed 15-year agreements with NetJets to provide maintenance, repair and overhaul services for the engines powering the newly ordered Challenger and Latitude aircraft.
With GE, NetJets signed an “OnPoint solution” agreement covering maintenance, repair and overhaul of the CF34 engines in last week’s order that included 25 firm CF34-3B-powered Bombardier Challenger 605s with options for up to an additional 50 aircraft. GE values the engine order and OnPoint solution agreement at more $400 million over the life of the agreement.
GE also is offering the OnPoint CF34 engine which powers the Challenger 600 Series and Challenger 800 series aircraft as well as the Passport propulsion system that will power the ultra-long-range, large cabin Global 7000 and Global 8000 aircraft.
NetJets also signed on with P&WC for a 15-year on-condition Fleet Maintenance Program (FMP) for the PW306D turbofan engines that will power Latitude aircraft that the fractional jet ownership company will begin flying in 2016. With the on-condition FMP, there are no hard-time intervals for hot section inspections or overhauls. P&WC evaluates each engine enrolled in the program and makes maintenance decisions based on ongoing performance.
The on-condition FMP agreement covers 50 installed engines and options for an additional 50 PW306D engines. P&WC notes that the on-condition program is available for all PW306D operators and complements the standard FMP, which is available for all Pratt & Whitney Canada engines. P&WC did not disclose the contract’s value.