Bombardier Wins $2.2 Billion Order for Business Jets

Bombardier Inc. (BBD/B) won an order for 38 business jets valued at $2.2 billion, the third and largest such purchase announced by the planemaker in the past week.

An unidentified customer is taking 28 aircraft from the Global family, the company’s largest models, and 10 Challenger 605 planes, Montreal-based Bombardier said today in a statement. Bombardier said the valuation was based on list prices for typically equipped aircraft, from which buyers get discounts.

The deal followed a Dec. 24 deal for 10 Challengers valued at $280 million at catalog prices, and a $259 million order announced yesterday for 10 different planes in the Challenger family. Bombardier didn’t identify either of those purchasers.

Business aircraft have been a bright spot for the company in a year in which Embraer SA (EMBR3) dominated sales of regional jets to U.S. airlines and Bombardier’s CSeries, a new model intended to compete with Boeing Co. and Airbus SAS planes, struggled to find buyers.

This year’s order tally “will be available when we release our next set of financial results,” Jacqueline Epifanie, a Bombardier spokeswoman, said by e-mail.

The biggest Global models can carry as many as 19 passengers, depending on the seating configuration. The Global 8000 boasts a maximum range of 7,900 nautical miles (14,631 kilometers), long enough for the transcontinental trips that are spurring corporate executives to favor larger planes.

Bombardier ended 2013 with a 23 percent gain, the most since 2007’s 51 percent. While that beat the 10 percent increase for the Standard & Poor’s/TSX Composite Index, it trailed the 35 percent surge for industrial stocks in that benchmark gauge

The widely traded Class B shares slid 0.7 percent to C$4.61 at the close today in Toronto, before the business-jet purchase was announced.

To contact the reporter on this story: Ed Dufner in Dallas at edufner@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net

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