Bombardier Lands $6.7 Billion Deal with NetJetsMarch 04, 2011
 Bombardier inked a deal to provide NetJets, a company owned by Warren Buffett's Berkshire Hathaway, with up to 120 business jets, according to The Toronto Star. Bombardier, a Montreal-based company, stands to make up to $6.7 billion on the deal. Perhaps more importantly, this will be the company’s first deal with the world's largest business aircraft operator whose fleet has been comprised mainly of rivals Gulfstream, Cessna and Dassault Falcon. The sale is the company's largest “business aircraft sale” in its history. NetJets has a fleet of about 800 aircraft. NetJets placed a firm order for 50 Global business jets, a sale valued at about $2.8 billion. The company could order another 70 Global jets, bringing the total sale to about $6.7 billion. The order includes 30 Global 5000 Vision and Global Express XRS Vision aircraft. Bombadier expects to begin delivery in late 2012. The NetJet deal also includes firm orders for 20 Global 7000 and Global 8000 jets — aircraft that are still in development. These jets will allow executive travelers to fly from Washington, D.C. to Beijing. Delivery is expected in 2017. Bombardier CEO Pierre Beaudoin said the contract comes at the right time after a difficult economic environment. “It permits us to look at our production with a more stable outlook, so for us it is exciting news,” Beaudoin told the Star. “It further helps us think of growth again in corporate airplanes.” Interestingly, Bombardier also competes with NetJets, which allows customers to buy shares in business jets, through its jet ownership division Flexjet. |
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