Saudi Arabia's The Helicopter Company signs LOI for up to 60 Bombardier business jets

The Helicopter Company, Saudi Arabia's largest commercial helicopter operator, has signed a letter of intent with Bombardier (BDRBF) (BDRAF)(BOMBF) for up to 60 business jets as it expands into fixed-wing aviation.

The agreement, announced Tuesday at the Farnborough International Airshow, calls for a proposed firm order covering 12 aircraft, including five Challenger 3500s, five Global 5500s and two Global 8000s. The companies also agreed to purchase options for up to 48 additional aircraft across the three models.

For investors, the Farnborough Airshow is one of the aerospace industry's largest events and a traditional venue for announcing aircraft orders. The deals provide insight into demand across commercial aviation and business jets while offering visibility into manufacturers' future production pipelines.

The companies said the letter of intent is expected to lead to a definitive purchase agreement.

THC enters fixed-wing market

THC, which is owned by Saudi Arabia's Public Investment Fund, said the move into business aviation reflects growing demand for private aviation in the kingdom, driven by tourism, business travel and economic development initiatives.

The company plans to build a fleet of as many as 60 aircraft spanning Bombardier's Challenger and Global business jet families to support charter and aircraft management services.

Chief Executive Arnaud Martinez said the expansion represents the next stage in THC's growth beyond helicopter operations.

Bombardier Chief Executive Éric Martel said the agreement supports the Canadian manufacturer's long-term presence in Saudi Arabia and includes plans for local investments to support THC's operations.

The companies did not disclose the potential value of the agreement. Because it is a letter of intent, the proposed order remains subject to negotiation of a final contract.