NetJets, the Berkshire Hathaway-owned fractional-share operator, completed a purchase agreement early last month for up to 120 new Bombardier Globals, a deal worth $6.7 billion if all aircraft options are taken. Notably, this is NetJets’ first order for Bombardier business jets; previous large-cabin acquisitions by the fractional provider have been for Gulfstreams and Falcons. Teal Group vice president Richard Aboulafia called the order “a powerful endorsement of the new Bombardier products and a clear sign that the high end of the market is leading the recovery.” He added: “Of course, any fractional provider order has to be regarded as at least somewhat speculative, but it’s an encouraging sign.”
The news came 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 order for 50 jets (retail value $2.8 billion, comprising 30 Global 5000s and Global Express XRSs and 20 Global 7000s and 8000s) and options for another 70 Globals. NetJets did not break down further details of the order. Deliveries begin in the fourth quarter of next year, but Global 7000/8000 deliveries won’t begin until 2017. NetJets chairman and CEO David Sokol commented to AIN: “Our criteria for this decision were based on owner requirements, reliability, global service, and overall economics and contractual conditions. We are excited about the decision.”
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