CALGARY — A helicopter company backed by Saudi Arabia’s sovereign wealth fund has signed a letter of intent with Bombardier for as many as 60 of the Canadian manufacturer’s aircraft.Bombardier and the Saudi Helicopter Company signed the letter at the Farnborough International Airshow in England for five Challenger 3500s, five Global 5500s and two Global 8000s.According to Bloomberg, the initial agreement is valued at approximately US$570 million (at list prices), though commercial aircraft transactions typically include significant discounts.The deal also includes options for an additional 48 aircraft.Founded in 2018, The Helicopter Company is part of Saudi Arabia’s Public Investment Fund and was established to help develop the kingdom’s aviation sector..Ontario buys $28.9M jet for Ford, opposition slams timing.The company said its expansion into business aviation is intended to capitalize on the rising demand fuelled by the growing tourism industry in Saudi Arabia, as well as increased business activity and the development of new destinations.“The new business stream is designed to meet growing demand for private and general aviation, driven by Saudi Arabia’s expanding tourism sector, business activity, and emerging destinations,” the company said in a statement.“THC aims to become the region’s leading business aviation operator and the national carrier of choice in private charters and business aviation.”This new agreement continues a string of major business jet orders for Montreal-based Bombardier.In February, Vista Global Holding Ltd. committed to purchasing 40 Challenger 3500 aircraft, while in April, KKR-backed private jet operator Bond increased its planned Bombardier fleet investment to US$5 billion, up from US$4 billion, covering more than 120 aircraft.This new order also adds to Bombardier’s growing backlog, which stood at US$20.3 billion at the end of March — up 16% from the previous year.Shares of the manufacturer have also climbed roughly 50% this year, their highest level since 2002.
