Bombardier deal could be worth $6.5B

Bombardier Aerospace signed a deal with Berkshire Hathaway's NetJets Inc. that could be worth $6.53 billionfor as many as 120 business jets.

The Montreal-based aerospace giant calls the transaction the "largest business aircraft sale" in the company's history. The company is the third-largest seller of commercial aircraft in the world, behind Boeing and Airbus.

Bombardier says NetJets has already placed a firm order for 50 Global business jets, a transaction valued at approximately $2.73 billion.

The deal also has the option for an additional 70 Global aircraft to be ordered which would bring the total value of the deal to over $6.53 billion.

NetJets' firm order involves 30 Global 5000 Vision and Global Express XRS Vision aircraft with deliveries scheduled to begin in the fourth quarter of 2012.

It also includes 20 firm orders for Bombardier's newly launched Global 7000 and Global 8000 jets. Deliveries will begin in 2017.

NetJets is the world's largest business aircraft operator, with a fleet of over 800 aircraft worldwide. Business aircrafts are a much smaller market than commercial airliners, but they have higher margins.

In February, Bombardier revealed that it delivered 143 business jets to customers inits last fiscal year, compared to 176 for the same period the year before that.

NetJetssaid it was impressed with Bombardier's vision for the future.

"The Global aircraft family is ideally suited to our owners' needs for range, reliability, interior comfort and operating efficiency," said NetJets president Jordan Hansell. "These aircraft will be an excellent complement to our existing large cabin capabilities and overall fleet that is unmatched in private aviation."