In a major boost to Canada’s aerospace sector, Montreal-based Bombardier has secured a landmark US$1.7 billion order for 50 business jets, accompanied by a comprehensive service agreement that could reshape the company’s financial outlook for years to come.
The deal, announced yesterday at Bombardier’s headquarters, represents one of the largest business aircraft purchases since the pandemic disrupted the aviation industry in 2020. The buyer, whose identity remains confidential due to contractual obligations, has committed to a mixed fleet of Challenger and Global series aircraft with deliveries scheduled to begin in early 2026.
“This order reflects the growing confidence in premium business travel and Bombardier’s position as an industry leader,” said Eric Martel, Bombardier’s President and CEO. “More importantly, it validates our strategic pivot to focus exclusively on business jets following the divestiture of our commercial aircraft and rail divisions.”
The transaction includes a 10-year service agreement valued at approximately US$400 million, providing Bombardier with a stable revenue stream beyond the initial aircraft delivery. Industry analysts note this after-sales service component has become increasingly crucial to aerospace manufacturers’ long-term profitability.
“The service agreement is perhaps the most significant aspect of this deal,” explained aviation analyst Maria Thompson. “It transforms Bombardier from simply a manufacturer to a lifetime partner for their clients, ensuring recurring revenue that helps smooth out the cyclical nature of aircraft sales.”
This order arrives at a critical moment for the Canadian manufacturer, which has undergone a dramatic transformation since 2020. After selling its commercial aviation business to Airbus and its rail division to Alstom, Bombardier has concentrated its efforts on the high-margin business jet market where it faces fierce competition from Gulfstream and Dassault Aviation.
Financial markets responded positively to the announcement, with Bombardier shares climbing 6.8% on the Toronto Stock Exchange. The company’s market capitalization has now recovered to pre-pandemic levels, reflecting investor confidence in its specialized business model.
The deal also highlights the remarkable resilience of the premium business jet market. While commercial aviation continues its gradual recovery from pandemic-era travel restrictions, private aviation has rebounded more quickly, driven by high-net-worth individuals and corporations seeking to avoid crowded airports and maintain flexible travel schedules.
According to industry data from the General Aviation Manufacturers Association, business jet deliveries increased 11% in 2024 compared to the previous year, with the ultra-long-range segment showing particular strength.
For Canada’s aerospace industry, which employs over 200,000 people and contributes approximately $28 billion annually to the national economy, Bombardier’s success represents a welcome sign of stability after years of uncertainty.
“This order demonstrates that Canadian aerospace innovation remains globally competitive,” said Federal Minister of Innovation, Science and Industry François-Philippe Champagne. “Bombardier’s success translates directly into high-quality jobs and economic growth across Quebec and Canada.”
As Bombardier prepares to fulfill this substantial order, questions remain about whether this signals the beginning of a larger industry upswing or merely represents pent-up demand following several years of cautious purchasing behavior. What’s certain is that Canada’s flagship aerospace manufacturer has secured its position in the premium segment of global aviation for the foreseeable future.
Will Bombardier leverage this momentum to accelerate its development of more sustainable aircraft technologies? That remains the next critical challenge for a company that has weathered significant turbulence but now appears to have found clear skies ahead.
