Textron offers option to sell 1,500 Cessna Citation aircraft to NetJets.
Textron offers option to sell 1,500 Cessna Citation aircraft to NetJets.
Private Jet Firm NetJets Signs Agreement with Textron Aviation to Acquire 1,500 Cessna Citation Business Jets
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In a move that showcases the sustained demand for private flying, private jet firm NetJets, owned by Berkshire Hathaway, has signed an agreement with Textron Aviation to potentially purchase up to 1,500 additional Cessna Citation business jets over the next 15 years. This deal, which is valued at approximately $30 billion, according to Jefferies analysts, reinforces both the growth potential of the private aviation sector and the strength of the Cessna brand.
Despite the impact of the pandemic, the demand for private flying remains healthy, with wealthy individuals seeking greater control over their travel. This trend has contributed to the continued profitability of the private aviation industry. Textron Aviation, the manufacturer and supplier of Cessna Citation business jets, has faced challenges in its aviation segment due to supply chain and labor issues. However, the positive impact of stronger pricing for its jets has partially offset these challenges.
The agreement builds upon NetJets’ existing fleet agreement and offers options for a progressively increasing number of aircraft each year. This flexibility allows NetJets to expand its fleet with the latest models from Cessna, including the Citation Ascend, Citation Latitude, and Citation Longitude aircraft. Notably, the deliveries of the Citation Ascend are expected to commence in 2025, coinciding with the aircraft’s planned entry into service.
The partnership between NetJets and Textron Aviation will not only result in a substantial enhancement of NetJets’ fleet but also contribute to the overall growth and expansion of the private aviation industry. As NetJets ensures its members have access to state-of-the-art aircraft, Textron Aviation will benefit from a long-term agreement and a significant increase in business.
The deal between NetJets and Textron Aviation represents a positive development for both companies. NetJets, as one of the leading private jet firms globally, will be able to meet the growing demands of its discerning clientele while expanding its market dominance. For Textron Aviation, this agreement further solidifies its position as a trusted manufacturer, with the potential for increased revenue and brand recognition.
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In summary, the agreement between NetJets and Textron Aviation signifies the robustness and resilience of the private aviation industry. Despite the challenges faced during the pandemic and ongoing supply chain issues, the demand for private flying remains strong. The prospect of NetJets potentially acquiring 1,500 additional Cessna Citation business jets over the next 15 years reinforces the long-term growth potential of the industry. As both companies continue to innovate and provide exceptional service, private jet travel is set to soar to new heights.
