NetJets, Textron Announce $30 Billion Private Jet Deal

20.09.2023 - 16:51 / forbes.com

Textron Aviation this morning announced an agreement that will provide NetJets with up to 1,500 new private jets over the next 15 years. Terms were not disclosed, however, an analysis by Jefferies values the deal at up to $30 billion. It follows a similar agreement with Embraer in May for 250 Praetor 500s valued at $5 billion.

This morning’s news extends a previous pact between the world’s largest private jet flight provider and Textron. It makes the unit of Berkshire Hathaway the launch fleet customer for the Citation Ascend, the successor for the Excel and XLS models that was announced during EBACE in Geneva this past May.

The Ascend brings a flat-floor cabin to the entry-level midsize jet.

As of August, NetJets had 76 Citation XLSs, 37 Sovereigns, 191 Latitudes, and 47 Longitudes.

According to Jefferies, 54% of all Latitudes in service are operated by NetJets and NetJets Europe.

The Jefferies analysis reports 25 Latitudes from the fractional operator’s 2016 order for 200 of the super midsize jet are expected to be delivered by the end of 2024.

Deliveries from this morning’s agreement are due to start in 2025.

Over its history Netjets has taken delivery of over 800 private jets from Textron, according to the announcement.

“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.

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.”

Ron Draper, President and CEO of Textron Aviation added, “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.”

NetJets’ agreements with OEMs typically do not include firm commitments, giving the flight provider flexibility to adjust deliveries based on sales.

While competitors such as Wheels Up have struggled with the Covid-induced surge in demand for private flights, NetJets has taken a more measure approach that is now paying off.

After first stopping both new customer sales and renewals for its jet cards and eliminating interim leases that fractional owners use to fly between placing their orders and delivery of their aircraft, it