Flexjet separating from Bombardier in private equity buyout

After 18 years as Canadian airframer Bombardier´s (TSX: BBD-B) fractional jet ownership division Texas-based Flexjet has forged a definitive agreement for its purchase by a group led by Directional Aviation Capital through a newly-formed entity Flexjet LLC.

With support from its new investors, Flexjet is placing the largest private aviation order in its history valued at approximately USD 5.2bn for up to 245 Bombardier business jets.

The transaction for the sale of Flexjet is expected to close by the end of the year.

According to Flexjet, the firm order includes 85 business jets, featuring next generation Challenger 350, Challenger 605 and Learjet 75 jets, and the highly anticipated Learjet 85 aircraft. The agreement also includes options for an additional 160 business jets.

Some aircraft deliveries are set to begin in 2014, the firm said.

When the transaction closes, Deanna White will continue to lead Flexjet through the next chapter of the firm´s evolution. Flexjet will continue to be run as an independent brand.

This development emerges during a period of growth for Flexjet, which is reporting a 96% increase of new fractional and jet card sales in January to June 2013 compared to the same period in 2012. In the first six months of this year, sales of new fractional shares increased a notable 112% while new jet card sales grew a solid 68%.

For more information visit www.flexjet.com.