NetJets converts first Praetor 500 options to firm orders

The world’s largest private jet flight provider, NetJets, which has nearly 2,000 options for private jets, has begun converting Praetor 500 options to firm orders.

According to Reuters, the Berkshire Hathaway subsidiary converted the first five of 250 options for the Embraer midsize jet.

During a briefing in Sao Jose Do Campos, Brazil, Embraer’s Alvadi Serpa Junior disclosed the update to reporters.

“As we move forward, we should expect to see more of these orders,” Serpa Junior told Reuters.

The options are valued at more than $5 billion if fully taken.

Reuters reports Embraer’s $4.6 billion backlog of orders at the end of Q1 only includes firm orders, not options.

The backlog was a $300 million sequential increase.

Last year, NetJets signed option deals with Textron Aviation for up to 1,500 business jets and Bombardier for up to 232 Challenger 3500s.

It was also announced as the mystery buyer of a dozen Challenger 3500s, an order placed last December.

Earlier this year, JetNet IQ said it expected delivery of new private jets to reach its highest level since 2009.

NetJets’ first Praetor 500s are expected to arrive in 2025.

The report didn’t specify when the options were converted. The options deal with Embraer was announced in May 2023.