Published June 12, 2012
Berkshire Hathaway’s NetJets has inked a deal to buy 150 new business jets from Textron’s (TXT) Cessna Aircraft Company.
Tuesday's announcement comes after The Wall Street Journal reported that NetJets planned to buy up to 425 aircraft from Cessna and Bombardier valued at $9.6 billion, making it the largest-ever purchase of private planes.
While Cessna's Citation Latitude jet carries a retail price of $14.9 million, valuing NetJet's total deal with Textron at around $2.2 billion, prices for large jet orders are often negotiated and offered at steep discounts.
“This order from NetJets shows confidence in the growing strength and long-term outlook of the global economy and the aviation industry,” Cessna President Scott Ernest said in a statement.
The Latitude has been designed for a crew of two plus up to eight passengers. It features Garmin G5000 avionics, includes an 84-inch fuselage and a 6-foot high passenger cabin.
First flight of the Citation Latitude prototype is expected to be mid-year 2014, with entry into service in 2015. Initial deliveries of the Citation Latitude jet to NetJet will begin in 2016.