Nextant Aerospace Signs $202.5 Million 400XTi Conversion Deal with Travel Management Company
LAS VEGAS, October 24, 2013 /PRNewswire/ --
- Nextant Aerospace will convert the entire TMC Hawker 400XP fleet
- Conversion deal is for up to 50 aircraft valued at $202.5 million
- More than 100 aircraft, which represents approximately 20% of the in-service BE 400A/XP fleet, are now committed to undergo Nextant's remanufacturing process
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.
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."
Nextant Aerospace is recognized as the first company in the world to introduce aircraft remanufacturing to the business jet market. The Nextant 400XTi is a completely rebuilt Beechjet 400A/XP with Williams FJ44-3AP engines and the Rockwell Collins Pro Line 21™ integrated avionics suite. The new aircraft also has major aerodynamic enhancements and an improved engine mounting configuration with redesigned nacelles and pylons. The 400XTi is delivered with a two-year full-aircraft warranty and after-sales support provided by a global network of owned and authorized service centers. Founded in 2007, Nextant is based in Cleveland, Ohio. Nextant is a Directional Aviation Capital company. For more information, please visit http://www.nextantaerospace.com, like us on Facebook, follow us on Twitter @nextantaero or join us on LinkedIn.
About Travel Management Company
With a fleet of 68 Hawker 400 and 800 business jets, TMC is the largest privately owned on-demand private jet service for light and midsize jet charter with access to over 5,500 North American airfields. Founded on the principle that private jet passengers deserve a better deal, TMC has rapidly built a reputation for value and quality. With airline-standard operating procedures and a Platinum ARG/US safety rating, it provides reliable, consistently exceptional customer service in as-new aircraft every day of the year. For more information about TMC visit http://www.tmcjets.com
Customer Experience Manager
SOURCE Nextant Aerospace