The Telegram (St. John's)

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.

Newspapers in English

Newspapers from Canada