Bombardier settled its 2016 lawsuit filed against Honeywell over HTF7000 engine pricing before the Superior Court of Québec, the companies said yesterday. Honeywell also simultaneously announced a strategic agreement to collaborate on new technologies “for current and future Bombardier aircraft in avionics, propulsion, and satellite communications technologies.”

Terms of the settlement were not revealed, but Jefferies Equity Research said Honeywell updated its 2024 guidance to reflect the investments being made as part of the agreement. This includes “$400 million in contra-revenue tied to its planned launch contributions for the HTF7000 and Anthem co-development programs.”

Though no details are yet available, Honeywell hinted at some developments in its announcement. These include a new engine in the HTF7000 family and joint development of Honeywell’s new Anthem avionics platform. The two companies will “co-innovate” development of the engine and avionics, which could be a hint that Bombardier is designing a new business jet in the super-midsize category or planning avionics upgrades in its current product line.

The HTF7000 powers four midsize/super-midsize jet families: the Bombardier Challenger 300/350/3500; Embraer Legacy 450/500 and Praetor 500/600; and Cessna Citation Longitude. The Challenger series, including the 650 and 300/350/3500, and Global 5500/6500/7500 all are equipped with Collins avionics.

Meanwhile, the the agreement also covers Honeywell’s JetWave X satcom terminals, including forward-fit and retrofit installations in Globals and Challengers, and Honeywell’s L-band satcom products. JetWave X combines access to Viasat and the former Inmarsat’s geostationary satellite networks to create a multi-network Ka-band satcom solution. Expected to come online next year, JetWave X will provide global connectivity, including over the Arctic region with Viasat’s GX10 satellites, and speeds up to 200 Mbps. 

If Bombardier is designing a new super-midsize jet with the new engine and Anthem avionics, its experience with the Global 7500 suggests that fly-by-wire flight controls could be an option.

“We have been expecting a new or reimagined/refined engine to be developed in the super-midsize space, so this is an endorsement of the health of this segment of the market, which is in such high demand, especially with fractional and large fleet operators,” said Rolland Vincent, president of Rolland Vincent Associates and founder/director of JetNet iQ. “This would also appear to be a win in the avionics space, although it is not clear if the Anthem suite will find an initial home on new-build jets or in the STC market. My read is that it is initially for the Challenger 300/350 aftermarket. If it is new-build, that would be a significant blow to Collins.

“The settlement money from Honeywell will be a nice tailwind of capital expenditures needed to fund a Bombardier development program. [It] looks like a win-win in that sense—Honeywell stays on wing to power a next-gen Challenger 3500, and Bombardier has a funding source for its development. The Anthem suite gets an important endorsement on board a market-leading fleet and enables Honeywell to be in position to compete against Collins for the avionics suite of the Challenger 3500NG and (presumably and ultimately) the eventual replacement for the Challenger 650.”

Analyst and consultant Brian Foley agreed: “This would appear to be some kind of Challenger 3500 refresh,” he told AIN.