Bombardier shares surge on largest-ever business jet order

Montreal (CP) — Bombardier Inc. shares soared in heavy trading Tuesday following a major deal with one of Warren Buffett’s companies, which is poised to buy up to $9.6 billion worth of business jets and services.

Private jet company NetJets Inc. signed a deal Monday to buy up to 275 Bombardier Challenger business jets that could be worth up to US$7.3 billion. There are 100 firm orders and options on 175 more.

Bombardier said it has also signed a 15-year service and maintenance agreement for the aircraft valued at as much as an additional US$2.3 billion if all options are exercised.

Bombardier shares gained more than six per cent, or 22 cents, to close at C$3.87 on heavy volume of more than 21.2 million shares on the Toronto Stock Exchange.

“This purchase demonstrates our long-term planning and represents our ongoing commitment to providing unparalleled safety and service in aircraft uniquely customized for our owners,” NetJets chairman and CEO Jordan Hansell said in a statement.

“We are confident that NetJets’ market leadership and strong foundation position us to make longterm investments in our business to differentiate our fleet in ways that no one else in the industry can.”

NetJets is a unit of Berkshire Hathaway Inc., the main company of renowned billionaire investor Warren Buffett.