NetJets to Buy 150 Planes From Textron

Berkshire Hathaway’s NetJets has inked a deal to buy 150 new business jets from  Textron’s (NYSE: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.