(Reuters) - Shares in Bombardier Inc (BBDb.TO) rallied on Tuesday on news that the Canadian planemaker had won an aircraft order that analysts said was the biggest business jet order in its history.
NetJets, a private jet-sharing company owned by Warren Buffett’s Berkshire Hathaway Inc (BRKa.N), said late on Monday it would buy up to 425 new business jets from Bombardier and Cessna in a $9.6 billion deal to expand its North American and European fleet.
Bombardier’s portion of the order is worth up to US$7.3 billion and includes 275 of its Challenger business aircraft. The transaction comprises 100 firm orders on two different types of Challenger jets, and options for 175 more.
“The NetJets order is the single largest in Bombardier’s history for business aircraft, eclipsing the previous order for Global aircraft placed by NetJets in March 2011,” PI Financial airlines analyst Chris Murray said in a note to clients.
Deliveries will start in 2014 and 2015.
Bombardier’s shares rose as high as C$4.02 in busy early morning dealings, a gain of 10 percent.
Cessna Aircraft Co, the world’s largest maker of business jets, is a subsidiary of Textron Inc (TXT.N).
Textron’s stock was 2.8 percent higher at $24.24 on the New York Stock Exchange.
Reporting by Nicole Mordant in Vancouver; Editing by Janet Guttsman