NetJets® Inc. Announces Largest Private Aviation Order in History
Purchase from Bombardier and Cessna Totals $9.6 billion
Acquisition Marks a Long-term Investment in the Future of Private Aviation
Purchase Further Expands NetJets State of the Art Product Offerings with the new NetJets Signature Series and Provides Advanced Service Experience for Its Owners
COLUMBUS, Ohio--(BUSINESS WIRE)-- In the largest aircraft purchase in private aviation history, NetJets® Inc., a Berkshire Hathaway (BRK.A) company (NYSE:BRKA) and the worldwide leader in private aviation, today announced 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.
The details of the order include:
- 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.
- 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 Bombardiers 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 its a standout member of the Cessna family and the entire industry.
ABOUT NETJETS® INC.
NetJets®Inc., a Berkshire Hathaway® company, is the worldwide leader in private aviation with the largest and most diverse private jet fleet in the world. NetJets began in 1964 as the first aircraft charter and management company in the world. In 1986, NetJets pioneered the concept of fractional aircraft ownership offering individuals and businesses all of the benefits of whole aircraft ownership and more, at a fraction of the cost. Today, NetJets offers a full range of private aviation solutions through its programs in North America and Europe, including NetJets Shares, NetJets Leases and the Marquis Jet Card®, which provides access to NetJets through a 25-hour jet card. The North America program is managed and operated by NetJets subsidiary NetJets Aviation, Inc., and the European program is managed and operated by NetJets Transportes Aéreos, SA, a Portuguese/EU Air Carrier. In the United States, NetJets also offers aircraft management and on-demand charter services through its subsidiary, Executive Jet®Management, Inc. Subject to obtaining relevant regulatory approvals, NetJets will also offer aircraft management and charter services in China through NetJets China Business Aviation Limited, a joint venture between NetJets and a consortium of Chinese investors. The NetJets companies offer worldwide flight operations. More information on NetJets, NetJets Europe, the Marquis Jet Card, and Executive Jet Management is available at www.netjets.com.
ABOUT BOMARDIER INC.
Bombardier is the worlds only manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.
Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2011, we posted revenues of $18.3 billion USD. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
Cessna is the worlds leading general aviation company. Since its inception in 1927, Cessna has designed, produced and delivered more than 192,500 airplanes around the globe. This includes more than 6,100 Citation business jets, making it the largest fleet of business jets in the world. Today, Cessna has two principal lines of business: aircraft sales and aftermarket services. Aircraft sales include Citation business jets, Caravan single-engine utility turboprops, single-engine piston aircraft and lift solutions by CitationAir. Aftermarket services include parts, maintenance, inspection and repair services. In 2010, Cessna delivered 535 aircraft, including 179 Citation business jets, and reported revenues of $2.6 billion. More information about Cessna Aircraft Company is available at cessna.com.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at textron.com.
Liz Wise, 614-849-7757 Direct
Manager, Media Relations
Source: NetJets Inc.Copyright Business Wire 2012