News

Jet Republic cancels Bombardier orders

Last Thursday, Jet Republic announced that its canceled its European business jet operation, forcing Bombardier Inc. to terminate a $1.5 billion order for 110 aircrafts from the Portuguese company.

The private jet charter company announced that it has suspended its Portuguese operations until further notice due to the bad financing conditions for potential owners.

The move comes as a great decline in demand for business jets is hitting the private aviation market. This has created many backlogs for aircraft manufacturers, like Embraer and Bombardier.

Last year, Jet Republic ordered 110 Learjet 60 XR aircrafts from Bombardier and it planned on using these aircrafts by October this year.

“Until very recently, we remained very confident of meeting our objectives, but the aviation asset finance market has completely dried up making it much more difficult for potential clients to take out and obtain financing for fractional ownership of jets,” commented Jet Republic in an emailed press statement.

“Our holding company is fully operational and will work closely with our shareholders to ensure that the interests of our existing clients, employees and suppliers are protected to the best of our ability.”

Source: The Wall Street Journal