Flexjet Sale to Directional Aviation Capital Finalized

AINalerts » December 12, 2013
December 12, 2013, 3:15 PM

Bombardier closed the sale of Flexjet to Flexjet LLC, a newly created company funded by Directional Aviation Capital, last week, though aircraft are still being transferred to the new owner. When the deal was announced on September 5, the acquisition price was $185 million; following “purchase price adjustments,” it is now estimated at $195 million, including the “assumption of an estimated $70 million of customer advances” by Directional’s Flexjet LLC.

The closing seals Flexjet LLC’s $2.4 billion firm order for 115 business jets–25 Learjet 75s, 60 Learjet 85s, 20 Challenger 350s and 10 Challenger 605s. The new owner also holds options for 150 more business jets worth $3.2 billion.

According to FAA aircraft registry records, 27 Flexjet program airplanes have been transferred to Flexjet LLC. “A majority of Flexjet’s approximately 80 program aircraft is owned by Flexjet customers, and those aircraft are not required to change registration,” Flexjet told AIN. “The program aircraft that Flexjet does own are being processed for registration through the FAA. Flexjet’s portion of responsibilities in that registration procedure is expected to be completed [tomorrow].”

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