LAS VEGAS, Oct. 24, 2013 /PRNewswire/ --
Nextant Aerospace ("Nextant"), maker of the Nextant 400XTi, the world's only remanufactured business jet, today announced a deal with Travel Management Company Ltd ("TMC") for the conversion of its entire Hawker 400XP fleet. TMC is a leading on-demand business jet service for light and midsize jet charter. The agreement is for 400XTi conversions on up to 50 aircraft, a deal valued at $202.5 million.
Order Significance
TMC's order means Nextant now has firm commitments in place to convert more than 100 aircraft, which represents approximately 20% of the in-service 400A/XP fleet. "The TMC deal is more than just another endorsement of the Nextant 400XTi," stated Nextant President, Sean McGeough. "It's an acknowledgment by TMC, one of the largest commercial business jet operators in the country, that the 400XTi meets the demands of their operations while simultaneously helping them to expand their future business. The transition to the new 400XTi fleet also offers an enhanced residual value relative to their current fleet. With more than 20% of Beechjet 400A/Hawker 400XP fleet committed to Nextant remanufacturing, the market is approaching a tipping point where remanufacturing is now the accepted long-term solution for competitive performance and value."
The Business Case
The deal comes as TMC moves to build on its remarkable reputation for service excellence. President Scott Wise explains why he chose the 400XTi: "In a highly competitive charter market we've learned that the key to success is having a well-rounded operating platform that performs in all major categories - value, performance and passenger comfort. We've done our research and it's clear that re-equipping with the 400XTi will keep us ahead of the competition for years to come. The 400XTi offers a 50% increase in range relative to our previous aircraft and a 30% reduction in operating cost. This combination significantly increases our mission capability and allows us to meet the needs of a larger customer base."
Jay Heublein, Nextant's Executive Vice President of Global Sales & Marketing, says: "Scott Wise and his team at
TMC have built one of the most respected and admired companies in the industry. They are famous for focusing on the critical areas of customer experience and operational integrity - reflected in their Platinum ARG/US safety rating - so their choice of the 400XTi is especially significant. It provides them with a sustainable aircraft platform that will be a viable business solution for the next several decades."
