Purchase From Bombardier And Cessna Totals $9.6 Billion
In the largest aircraft purchase in private aviation history, NetJets Inc., a Berkshire Hathaway company, announced Monday it will add up to 425 new aircraft to its worldwide fleet under purchase agreements with Cessna and Bombardier. The transaction has a total value of $9.6 billion and launches the new NetJets Signature Series of aircraft.
"This purchase demonstrates our long-term planning and represents our ongoing commitment to providing unparalleled safety and service in aircraft uniquely customized for our owners," said NetJets Chairman and CEO Jordan Hansell. "Beyond the size of this order, what makes the new NetJets Signature Series special are the latest in aircraft technology and in-cabin comfort features we will deliver for our owners. By increasing the range and endurance of our fleet, we will allow our owners to get to even more destinations worldwide. We are confident that NetJets' market leadership and strong foundation position us to make long-term investments in our business to differentiate our fleet in ways that no one else in the industry can."
NetJets will purchase up to 275 Bombardier Challenger aircraft, including 100 firm orders and options for 175 more. The order comprises 75 firm and 125 options of the Challenger 300 Series aircraft. Deliveries for this aircraft are scheduled to begin in 2014. The order also includes 25 firm and 50 options of the Challenger 605 Series aircraft, with deliveries scheduled to begin in 2015.
The company will also acquire up to 150 Cessna Citation Latitudes, including 25 firm orders and options for 125 more, with deliveries beginning in 2016.
The addition of these new midsize cabin aircraft, along with the recently-ordered Embraer Phenoms and Bombardier Globals, marks the launch of a new NetJets Signature Series of aircraft as part of NetJets' 10-year business plan, which includes continuous renewal of its current fleet of more than 725 aircraft. The Signature Series planes are the first aircraft that NetJets helped design from start to finish. These aircraft are bigger, faster, quieter and offer longer range than similar aircraft of the previous generation. The purchases will provide options to expand the capabilities of NetJets' North American and European fleets. These aircraft will deliver technological features to ensure maximum safety, reliability and owner comfort, including advanced in-flight entertainment systems, quiet cabins, and customized seating, lighting and storage features.
"These new planes will further set NetJets' service experience apart from all others," Hansell said. "We listened to our owners and developed the design specifications of these aircraft to ensure that our fleet meets their exacting needs. The NetJets Signature Series planes will offer our owners, whether flying for business or leisure, a seamless transition from the ground to the sky, coupled with the safety and service experience they expect from us."
"We are very proud that, once again, NetJets has selected Bombardier aircraft to grow and support the expansion of its fleet worldwide," said Steve Ridolfi, President, Bombardier Business Aircraft. "Our Challenger 300 Series and Challenger 605 jets are worldwide leaders in their respective segments. These aircraft are renowned for their reliability, performance and wide cabin comfort. We are convinced that the Challenger jets will complement NetJets' existing fleet perfectly. After selecting our Global aircraft last year, this new order is a fantastic endorsement of Bombardier's large cabin product portfolio."
"We are very excited to enhance our long standing relationship with NetJets by producing the Citation Latitude for them and their customers," said Scott Ernest, Cessna president and CEO. "The Latitude is a game-changer, not only for the Cessna line of products, but for the industry. It will provide sophistication, modern technology and a whole new level of cabin comfort and style. This airplane will prove each and every time why it's a standout member of the Cessna family and the entire industry." (Images: Top, Bombardier Challenger 605. Bottom, Cessna Citation Latitude.)