Bombardier to sell the Q400 program to Viking

Bombardier made this announcement:

On November 7, 2018, the Corporation entered into a definitive agreement for the sale of the Q Series aircraft program assets, including aftermarket operations, to a wholly owned subsidiary of Longview Aviation Capital Corporation, for gross proceeds of approximately $300 million. The agreement covers all assets and intellectual property and Type Certificates associated with the Dash 8 Series 100, 200 and 300 as well as the Q400 program operations at the Downsview manufacturing facility in Ontario, Canada. The transaction is expected to close by the second half of 2019, subject to customary closing conditions and regulatory approvals. Net proceeds for this transaction are expected at approximately $250 million net of fees, liabilities and normal closing adjustments.

Viking is part of Longview. Headquartered in Victoria, British Columbia, Viking is the global leader in utility aircraft services, and manufacturer of the world-renowned Series 400 Twin Otter. Viking is the Original Type Certificate holder for all out-of-production de Havilland aircraft, DHC-1 through the DHC-7, as well as the Canadair 215 and CL-415 aerial firefighters. Viking provides exclusive global spare parts manufacturing and product support for these fleets.

Viking will now take over the Q400 series.

Longview Aviation Capital Corporation later issued this statement:

Longview Aviation Capital Corporation, parent company to Viking Air Limited, a leading Canadian aircraft manufacturer, today agreed to acquire, through an affiliate, the entire Dash 8 program including the 100, 200 and 300 series and the in-production Q400 program from Bombardier Inc. Also included as part of the transaction are rights to the de Havilland name and trademark in an all-Canadian transaction.

Once completed, Longview will become North America’s largest commercial turbo-prop aircraft manufacturer.

“The Dash 8 turbo-prop is the perfect complement to our existing portfolio of specialized aircraft including the Twin Otter and the Canadair CL 215 and 415 series of water bombers,” said David Curtis, CEO of Longview Aviation Capital Corp. “We see enormous value in the de Havilland Dash 8 program, with these aircraft in demand and in use all around the world.”

As part of the agreement, Longview will receive all assets and intellectual property and Type Certificates associated with the Dash 8 program. Upon the closing of the transaction, Longview will also assume responsibility for the worldwide product support business – covering more than 1,000 aircraft either currently in service or slated for production.

Longview will continue to independently operate the program at the original de Havilland manufacturing site located at Downsview, Ontario upon closing of the transaction. The Downsview site was sold by Bombardier earlier this year but, under the terms of a lease with the new owners and a license from Bombardier, production will remain on-site until at least 2021. As part of the transaction Longview also looks forward to welcoming Bombardier employees currently associated with the production, support and sales of the Dash 8 program.

“We are committed to a business-as-usual approach that will see no interruption to the production, delivery and support of these outstanding aircraft,” added Curtis. “With the entire de Havilland product line reunited under the same banner for the first time in decades, we look forward to working with customers, suppliers and employees upon close of the transaction to determine what opportunities lie ahead.”

Longview and Bombardier will work closely in the period until the closing of the transaction to ensure a seamless transition for employees, customers, suppliers and other stakeholders with no interruption in production, delivery and support of the aircraft.

This transaction builds on Longview’s established track record of acquiring and successfully operating significant aircraft manufacturing, parts and serving programs including the Twin Otter program and the Canadair CL 215 and 415 waterbomber series.

The transaction is subject to typical closing conditions and the receipt of regulatory approvals. The sale and transaction are expected to close by the second half of 2019.

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