December 17, 2024
Following its announcement for 250 Praetor 500s in May, NetJets has signed a deal for up to 1,500 private jets from Textron over the next 15 years.
NetJets signaled its intention to remain the dominant force in private aviation this morning.
The unit of Berkshire Hathaway, by far the largest private jet flight provider in the world, is buying up to 1,500 new private jets from Textron over the next 15 years.
Terms were not disclosed. Jefferies values the deal at up to $30 billion.
“As a long-time, trusted ally who shares our commitment to safety and service, Textron Aviation is the ideal partner to help us expand our offerings to NetJets owners with the introduction of the new Ascend to our midsize jet class, as well as by growing our overall fleet,” said Doug Henneberry, NetJets Executive Vice President, Aircraft Asset Management in a press release.
He continued, “Based on past demand for the popular Citation Latitude and Longitude, the new Ascend and all our new Citations will undoubtedly be well received by our owners, particularly those who depend on NetJets to help them do more and miss less.”
In May, it announced a deal with Embraer that will bring it up to 250 Praetor 500s valued at $5 billion.
Deliveries start in 2025, and NetJets is already pitching the airplane.
Today’s agreement extends an existing fleet deal with Textron.
It includes options for an increasing number of aircraft each year, enabling NetJets to expand its fleet with Cessna Citation Ascend, Citation Latitude, and Citation Longitude aircraft.
NetJets was also named the fleet launch customer for the Excel/XLS successor Ascend, which was introduced during EBACE in Geneva in May. Deliveries of the Citation Ascend are expected to begin in 2025, when the aircraft, currently under development, will likely enter into service.
Its current wait time for delivery slots extends into 2025 for models such as the Phenom 300.
In terms of its relationship with Textron, NetJets has taken delivery of more than 800 aircraft, including exercising over 300 options for Citation Latitudes and Longitudes during the past eight years.
“NetJets customers around the world continually select Citations as their aircraft of choice. We’re honored to be the largest provider of industry-leading aircraft to NetJets and look forward to continuing to work together to design and deliver the best aviation experience based on customer feedback,” said Ron Draper, president and CEO of Textron Aviation.
Draper continued, “Expanding and adding the Citation Ascend to the NetJets fleet will provide its global customers with even more versatility and flexibility to accomplish their missions, building upon the exceptional performance and popularity of the Latitude and Longitude.”
In October 2021, NetJets extended its agreement with Embraer to add 100 more Phenom 300s.
As of August, NetJets had 76 Citation XLSs, 37 Sovereigns, 191 Latitudes, and 47 Longitudes.
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