BIG $5B DEAL for Berkshire Hathaway's NetJets

The Praetor 500 is the world’s most disruptive and technologically advanced midsize business jet, boasting an impressive best-in-class range—enabling U.S. coast-to-coast capability—industry-leading speed, and unparalleled runway performance. In terms of technology, it’s the only aircraft in its category with full fly-by-wire flight controls.

NetJets announced a deal with Embraer to acquire options for up to 250 Praetor 500 jet aircraft, including an agreement for services and support. The companies valued the transaction at more than $5 billion and expect to begin deliveries in 2025.

NetJets said the agreement will help it provide “an enhanced customer experience” as it conducts an average of 1,200 flights per day worldwide.

READ MORE: NetJets Orders 100 More Phenom 300s from Embraer

The companies’ relationship dates back to at least 2010, when NetJets entered its first purchase agreement with Embraer for 50 Phenom 300 jets with options for up to 75 additional aircraft. NetJets said the Phenom has since become one of its most requested aircraft.

In 2021, following the delivery of more than 100 aircraft to NetJets, the companies entered a continuing agreement for as many as 100 additional Phenom 300/E aircraft. The deal was valued at more than $1.2 billion.

“We are eager to add the Embraer Praetor 500, one of today’s most state-of-the-art business jets, to our midsize fleet,” said Doug Henneberry, executive vice president of NetJets’ aircraft asset management. “This historic fleet agreement is another way that we are growing our fleet for the benefit of our loyal customers. By adding up to 250 aircraft to our fleet, we will continue providing NetJets owners with exceptional service and seamless access to all corners of the globe.”

Said Michael Amalfitano, president and CEO of Embraer Executive Jets: “Since 2010, Embraer has enjoyed NetJets’ ongoing commitment to our industry-leading aircraft, which is a true testament to the value of our brand and our ability to deliver the ultimate experience in business aviation. After building this successful foundation with the Phenom 300 series, it’s our pleasure to have now signed this monumental deal for the Praetor 500 midsize jet, and we look forward to an even more exciting future ahead.”

Embraer said the Praetor 500’s speed, runway performance and range, making it capable of coast-to-coast U.S. flights, help set it apart from other jets in the midsize category. In addition to fly-by-wire controls, the Praetor 500 offers the lowest cabin altitude and the tallest, widest cabin cross-section in its class.

Embraer and NetJets Announce Deal for Up to 250 Praetor 500 Jets in Excess of US $5Bn

The new agreement signifies NetJets commitment to creating an enhanced customer experience and trust in Embraer's industry-leading portfolio and customer support
With a partnership spanning more than a decade, NetJets has taken delivery of nearly 120 total aircraft since it first signed an order with Embraer in 2010

"To continue providing reliable global access and exceptional service to current NetJets Owners and their guests, NetJets has signed a new deal with Embraer for up to 250 Praetor 500 jet options, which includes a comprehensive services and support agreement. The deal is valued in excess of US $5 billion, with deliveries expected to begin in 2025, and will be NetJets’ first time offering the midsize Praetor 500 to customers. For over a decade, NetJets has operated Embraer’s Phenom 300 series—one of NetJets’ most requested aircraft.

The partnership between Embraer and NetJets began in 2010 when NetJets first signed a purchase agreement for 50 Phenom 300 aircraft, with up to 75 additional options. In 2021, after Embraer successfully delivered over 100 aircraft, the companies signed a continuing deal for up to 100 additional Phenom 300/E jets, in excess of $1.2 billion.

With this new agreement, NetJets signifies not only its commitment to creating an enhanced customer experience as the company is averaging over 1,200 worldwide flights per day but also its trust in Embraer’s industry-leading portfolio and top-ranked support to deliver the ultimate experience to NetJets customers.

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“Since 2010, Embraer has enjoyed NetJets’ ongoing commitment to our industry-leading aircraft, which is a true testament to the value of our brand and our ability to deliver the ultimate experience in business aviation,” said Michael Amalfitano, President and CEO of Embraer Executive Jets. “Our strategic partnership has been an integral part of our business growth, with NetJets taking all aircraft delivery options that have been ordered with Embraer since inception. After building this successful foundation with the Phenom 300 series, it’s our pleasure to have now signed this monumental deal for the Praetor 500 midsize jet, and we look forward to an even more exciting future ahead.”

“We are eager to add the Embraer Praetor 500, one of today’s most state-of-the-art business jets, to our midsize fleet,” said Doug Henneberry, Executive Vice President of NetJets Aircraft Asset Management. “This historic fleet agreement is another way that we are growing our fleet for the benefit of our loyal customers. By adding up to 250 aircraft to our fleet, we will continue providing NetJets Owners with exceptional service and seamless access to all corners of the globe.”

Not only does the Praetor 500 offer exceptional performance but it also offers one of the most comfortable cabin experiences. It features the lowest cabin altitude in its class, as well as the tallest and widest cross section in the segment. Additionally, it offers a flat-floor cabin, stone flooring, a vacuum lavatory, and ample baggage space, including a fully enclosed internal baggage compartment.

NetJets will add up to 250 of Embraer’s midsize Praetor 500 private jets to its fleet, with first deliveries slated for 2025

"Days after Berkshire Hathaway Chairman Warren Buffett praised NetJets Chairman and CEO Adam Johnson, his private jet company said it is buying Embraer’s Praetor 500 midsize jets. In November, Private Jet Card Comparisons exclusively reported the possibility of a deal in a story detailing the fractional provider’s waitlist, which stretches into 2024.

The agreement with Embraer calls for the world’s largest private jet operator to add up to 250 Praetor 500s.

According to the announcement, the deal is valued at more than $5 billion. . .

The Praetor 500 offer offers a coast-to-coast range with the lowest cabin altitude in its class and the tallest and widest cross-section in the segment.

It also offers a flat-floor cabin and a fully enclosed internal baggage compartment. 

Rival Flexjet was a launch customer of the Praetor 500."

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Sunday, May 14, 2023