NetJets Places Huge Bombardier Order

NetJets, the Berkshire Hathaway-owned fractional-share operator, has agreed to buy up to 120 new Bombardier Global jets, a deal worth $6.7 billion if all aircraft options are taken. This is NetJets' first order for Bombardier business jets; previous large-cabin-aircraft acquisitions by the fractional provider have been for Gulfstreams and Falcons. This news comes days after Berkshire Hathaway revealed record profits for the fractional-share operator and 15 months after NetJets cancelled a large order for Hawker Beechcraft Hawker 4000s and 900s.
The agreement with Bombardier involves a firm commitment for 50 jets (including 30 Global 5000s and Global Express XRSs and 20 Global 7000s and 8000s, with a total retail value of $2.8 billion) and options for another 70 Globals. Deliveries will begin in the fourth quarter of next year, but Global 7000/8000 deliveries won't start until 2017. NetJets chairman and CEO David Sokol told BJT sister publication Aviation International News that the company based its purchase decision on four factors: owner requirements; reliability; global service; and overall economics and contractual conditions.