Textron announces option to sell up to 1,500 Cessna Citation aircraft to NetJets

By Mehr Bedi

(Reuters) -Textron Aviation and NetJets on Wednesday signed an agreement which would give the private jet firm owned by Berkshire Hathaway an option to buy up to 1,500 additional Cessna Citation business jets over the next 15 years.

The deal for Cessna Citation business jets, which are designed, produced and delivered by Textron, could be valued at approximately $30 billion, according to analysts at Jefferies.

Shares of Textron rose 3.1% in early trading.

Demand for private flying remains healthy despite having tempered from the highs reached during the pandemic when the wealthy took control of their travel.

While continued supply chain and labor issues have hit Textron's most profitable aviation segment, the impact is countered by stronger pricing of its jets.

The deal extends NetJets' existing fleet agreement and includes options for an increasing number of aircraft each year, allowing it to expand its fleet with Cessna Citation Ascend, Citation Latitude and Citation Longitude aircraft.

Deliveries of the Citation Ascend are expected to begin in 2025 when the aircraft, currently under development, is expected to enter into service.

(Reporting by Mehr Bedi in Bengaluru; Editing by Shilpi Majumdar)