Bombardier launches high-end Challenger 3500 in battle of midsize private jets

MONTREAL, Sept. 14 (Reuters) – Bombardier (BBDb.TO) on Tuesday unveiled a high-end variant of its successful Challenger 350 business jet as the aircraft maker seeks to protect its dominant market share and take advantage of the increased demand for private flights during the pandemic.

The refreshed variant, named the Challenger 3500, seats up to 10 passengers and comes with voice-activated cabin systems like lighting, and a smaller version of the lounge chair seats found on the flagship. Bombardier Global 7500.

The Challenger 3500, which is slated to enter service in the second half of 2022, will cost $ 26.7 million, the same price as the 350, CEO Eric Martel said in an interview.

While Bombardier has focused on paying down debt after facing a cash shortage in 2015, it faces pressure to refresh the Challenger in a market where wealthy buyers demand the latest features.

During the pandemic, health became the top concern of the targeted elite, alongside security and privacy, underpinning demand for private jets.

Martel said the changes would help Bombardier retain the Challenger’s more than 50% market share in the super-midsize segment that connects small corporate jets and long-haul aircraft that can accommodate 19 people.

“We are raising the bar in this category,” he said, adding that cabin features are essential for Challenger customers.

Spending for the new 3500 variant is contained within the company’s planned capital spending of $ 200 million to $ 250 million, Martel said.

A mockup of the aircraft, Bombardier’s first update of the Challenger 300 family since the 350 entered service in 2014, was on display at a virtual event, confirming a Reuters report on the launch on Monday. Read more

Bombardier said the mock-up will be on display next month in Las Vegas at the business jet industry’s largest airshow.

The aircraft competes with Praetors from Embraer SA (EMBR3.SA), Cessna Citation Longitude from Textron Inc (TXT.N) and G280 from Gulfstream Aerospace from General Dynamics Corp (GD.N).

Following the announcement, Martel said Bombardier is exploring key potential options for its aftermarket division, as well as the Global and Challenger 650 large-cabin business jets.

Reporting by Allison Lampert in Montreal; Editing by Stephen Coates

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