Bombardier exits Dash 8 with De Havilland sale to Longview Aviation

Longview Aviation Capital Corp. has closed previously announced acquisition of De Havilland Aircraft of Canada Limited, and the entire Dash 8 program including the 100, 200 and 300 series and the in-production Q400 program from Bombardier Inc. (TSX: BBD.B), for approximately $300 million.

Longview Aviation Capital had previously acquired in October 2016, through Viking Aviation Limited, the Amphibious Aircraft program from Bombardier, including transfer of the Type Certificates for the CL-215, CL-215T, CL-415 aircraft and all variants to Viking.

In 2018, The Public Sector Pension Investment Board (PSP Investments) acquired from Bombardier the Downsview Airport property for approximately US $635 million.

As part of the sale, Bombardier is to operate from Downsview for a period of up to three years until 2021. Longview Aviation Capital has extended the lease until 2023.

Longview Aviation Capital Corp. is the family investment vehicle of Sherry Brydson.

Update: Bombardier will continue to operate its Global 7500 business jet program at Downsview under lease.

photo credit: De Havilland

News Release

De Havilland Aircraft of Canada Returns to the Skies

Victoria, British Columbia, June 3rd, 2019: Iconic aviation brand becomes trade name for global Dash-8 / Q400 aircraft business

Toronto, ON — Longview Aviation Capital Corp., manager of a portfolio of long-term investments in the Canadian aerospace industry, today launched De Havilland Aircraft of Canada Limited ­– the trade name of the subsidiary company that will operate the worldwide Dash 8 aircraft business. The launch comes with the formal completion of the transaction through which Longview acquired the entire Dash 8 program including the 100, 200 and 300 series and the in-production Q400 program from Bombardier Inc. The Dash 8 joins Longview’s comprehensive portfolio of aircraft programs, including the Twin Otter program and the DHC-1 through DHC-7 series, as well as the former Canadair CL-215, CL-215T, and CL-415 waterbomber aircraft.

Commented David Curtis, Chairman, Longview Aviation Capital:

“We are thrilled to assume responsibility for this exceptional aircraft program, and welcome the more than 1200 professionals that are joining De Havilland Aircraft of Canada from Bombardier. We aim to enhance the tradition of excellence around this aircraft by ensuring we continue to evolve to meet the needs of our customers, with a focus on the cost competitiveness of these aircraft across the lifespan, from production to parts and in-service support. In the months ahead we will be investing in the business with the aim of positioning us to better serve our customers.”

“We are particularly proud to introduce De Havilland Aircraft of Canada as an operating company and return the De Havilland Canada brand to prominence in the global aerospace industry. The iconic De Havilland name dates back almost one hundred years, and is responsible for some of the most renowned aircraft in aviation history. The combination of the Dash 8 with the existing Longview Aviation Capital portfolio unites the entire De Havilland product line under the same banner for the first time in decades. With a new corporate identity that draws on the rich brand heritage, we are excited about the opportunities we see ahead for this company, and for the Dash 8 aircraft.”

De Havilland Aircraft of Canada Limited will continue to produce, service and support Dash 8 and Q400 aircraft from the Downsview site in Toronto under land lease agreements which extend until 2023. Todd Young, a 30-year veteran of Bombardier who most recently was responsible for the Q-Series program, will lead the business as Chief Operating Officer. Nearly all of the previous Downsview workforce, and all existing union agreements, have transitioned to De Havilland Aircraft of Canada, ensuring operational continuity and a seamless transition for customers.

“We are excited to begin the next chapter for this aircraft program and to share the De Havilland Aircraft of Canada brand with the world,” said Mr. Young. “Our team at Downsview is engaged and motivated, and we look forward to working with our customers, suppliers and industry partners to maintain the Dash 8 turboprop’s position as one of the world’s most important commercial aircraft.”

De Havilland Aircraft of Canada Limited has obtained all regulatory approvals from Transport Canada and relevant competition authorities.

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.