A deal has been struck for Viking Air to acquire Bombardier’s Amphibious Aircraft programme. The agreement covers the acquisition of the Type Certificates for the CL-215, the CL-215T and the Bombardier 415 as well as after-market services.
The completion of the transaction is subject to governmental and regulatory approval as well as the fulfilment of other customary closing conditions. It is expected to be completed in the “next few months”.
“This transaction supports our goal of rebuilding a clear path to profitable earnings growth and cash generation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier. “While the Amphibious Aircraft program is part of our long history, this divestiture positions Bombardier to better focus on our core, higher growth businesses; business jets, commercial aircraft and rail transportation.”
Bombardier paused the Amphibious Aircraft programme in December and the company says the decision to sell was made after “careful deliberation and a rigorous analysis”.
The deal follows Viking Air’s successful model of acquiring, supporting and sustaining utility aircraft programmes; the British Columbia-based manufacturer produces the Twin Otter Series 400 aircraft. Viking will support the worldwide amphibious aircraft program from a newly acquired and specially repurposed 50,000 square foot facility in Calgary.
David Curtis, President and Chief Executive Officer of Viking, said: “This acquisition expands Viking’s capabilities in product support and parts into another vital niche aviation segment, and ensures that a unique and important Canadian innovation stays in Canada.
“We are proud to add another iconic Canadian aircraft program to Viking’s stable – our aim is to take the 415 to its highest potential and keep these aircraft in service for decades to come. This transaction builds on our presence in British Columbia and Alberta and expands on the existing strengths of the western Canadian aerospace industry. At the same time, we will continue to rely on an extensive supply chain in Quebec and Ontario to support both the amphibious aircraft and Twin Otter programs.”
Bombardier says the 50 employees working on the Amphibious Aircraft programme will be redeployed to other parts of its business.