Exclusive: NetJets buying new jets from Embraer


NetJets is set to announce a large order for new Embraer aircraft at the 2010 NBAA Convention.

NetJets will announce a large new aircraft order with Embraer this week. This is the world’s largest fractional operator’s first order with Embraer. The number of aircraft has not yet been revealed.

“We can’t believe the deal is at such a low price,” said one manufacturer. “It is a deal no one else could have done.”

The order is a surprise as NetJet’s owner Berkshire Hathaway said that the company was looking to cut aircraft when it announced second half results in July.  “NetJets continues to own more aircraft than is required for present operations and we expect to continue to dispose selected aircraft over time,” said Berkshire Hathaway.

NetJet’s revenues increased 17% for the first half of 2010 compared with the same period in 2009.

The fractional ownership company made a pre-tax profit of $114 million in the first six months of 2010, compared with a loss of $349 million for the same period in 2009. The 2009 loss included aircraft write-downs and redundancies of $255 million.  

NetJets cancelled orders for $2.6 billion with Hawker Beechcraft in December 2009.