Business jets still in hot demand — especially among charter firms rather than CEOs - BNN Bloomberg

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Despite supply chain snarls, Bombardier boosted its second-quarter revenues amid ongoing demand for business jets as deliveries and aftermarket services ramped up, said CEO Éric Martel.

“Our team successfully navigated a highly dynamic business environment that saw sustained demand for new and pre-owned jets, as well as steady service growth, all while supply chain pressure persisted,” Martel said in a statement Thursday.the plane maker boosted revenue by eight per cent year over year on the back of 29 jet deliveries and a big leap in income from repairs and parts replacement for some of the 5,000-odd Bombardier planes that ply the skies globally.

Still, the Montreal-based outfit increased its backlog by $100 million from the previous quarter to $14.9 billion and touted a book-to-bill — the ratio of orders received to deliveries billed, a key indicator of near-term demand — of 1.1. The 7770,000-square-foot facility marks the culmination of a move from its plant at Downsview Airport, where planes have been built since 1929 — initially by De Havilland.

Charter flights involve hiring a plane and crew for a custom trip. Jet card programs, which function like a premium charter membership, see customers pay in advance for the privilege of a fixed hourly rate and guaranteed availability, with dozens of companies serving North America. “We have well-established fleets with the biggest brands,” Martel said, citing companies like Airshare. The Kansas-based company, which sells fractional ownership in its fleet, made a joint announcement with Bombardier last week for an order of up to 20 more Challengers, doubling an initial order from 2021 for the mid-sized jets.

 

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