Bombardier Acquires U.S. Jet Service Amid White House Plane Decertification Threats
Bombardier Inc., the renowned Canadian manufacturer of private jets, has recently announced the acquisition of U.S.-based Velocity Maintenance Solutions. This deal marks a significant expansion of Bombardier’s operations in the United States, amid looming threats from the White House regarding certification issues for Canadian-made aircraft.
Details of the Acquisition
The deal involves the purchase of Velocity’s extensive assets, including a 35,000 square-foot hangar located in Wilmington, Delaware, alongside a fleet of 14 mobile repair trucks operating throughout the United States. While the specific purchase price has not been disclosed, it has been indicated that the transaction is not material to Bombardier’s overall financial standing.
Strategic Expansion Plans
- This acquisition aligns with Bombardier’s strategic plan established in 2021, which focuses on enhancing service capabilities and global market share.
- In the most recent quarter, Bombardier reported $590 million in revenue from its services division, accounting for approximately 26% of total revenue.
- The company is actively exploring further merger and acquisition opportunities in the aviation sector to strengthen its service network.
Regulatory Challenges
Recent statements from U.S. President Donald Trump have raised concerns about Bombardier’s business prospects. Trump hinted at a potential decertification of Bombardier’s Global Express jets and other Canadian-made aircraft, linking it to Canada’s refusal to certify Gulfstream’s new business jets. He threatened a 50% import tariff on Canadian aircraft if the situation remains unaddressed.
Despite these alarming comments, aviation experts argue that the President lacks the authority to unilaterally decertify aircraft. Meanwhile, Canada’s Transport Minister Steven MacKinnon has emphasized ongoing communication with industry stakeholders to clarify the regulatory landscape against any misunderstandings.
Continued Investment in U.S. Operations
In line with its commitment to growth, Bombardier is poised for a major expansion of its jet services across various U.S. states. Recently, the company announced plans to establish a new service point in Fort Wayne, Indiana. Bombardier already has a significant footprint in the U.S. with service centres strategically located in Dallas, Tucson, Hartford, Wichita, and Miami.
With the impending release of its fourth-quarter financial results, Bombardier continues to push forward with both growth and service improvement strategies, despite external challenges.
