Bombardier Inc announced on Thursday that it got $534mn worth of firm orders for 20 units of an upgraded variant of its Challenger 350 aircraft, its largest commercial jet deal this year. This underscores the recovery in demand for travel and airplanes this year after a dull 2020. The latest order trumps its previous largest order this year of $452mn for business jets received in late June.
The new jet, Challenger 3500, was launched earlier this month as Bombardier struggled to protect its dominant market share and capitalize on increased demand for private flights during the pandemic. Bombardier, which has focused on debt settlement after a liquidity crisis in 2015, is under constant pressure to upgrade its expensive commercial jets in a market where wealthy buyers demand the latest features. Peter Likoray, SVP Sales of New Aircrafts at Bombardier noted that their significant order “reinforces the supremacy of this platform in the super mid-size market. The new Challenger 3500 aircraft is ideally suited to meet a growing demand for business travel”. The newly unveiled jet is expected to enter service in 2H2022 and will be listed at the same price as the Challenger 350 for $26.7mn.
Bombardier’s 6% 2028s traded steady at 101.625, yielding 5.69%.
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