Arab Today, arab today buffett sinks 96 bln in private jets amid slump
Last Updated : GMT 16:58:54
Arab Today, arab today
Arab Today, arab today

Buffett sinks $9.6 bln in private jets amid slump

Arab Today, arab today

Arab Today, arab today Buffett sinks $9.6 bln in private jets amid slump

Los Angeles - Arabstoday

Warren Buffett’s Berkshire Hathaway Inc. jumped into the slumping private-jet market again with a record order valued at $9.6 billion, betting on a rebound later this decade with a third plane purchase in less than two years. Buying as many as 425 jets from Bombardier Inc. and Textron Inc.’s Cessna will bolster Berkshire’s NetJets as the U.S. and European economies “ultimately come back to a much stronger position,” NetJets chief executive officer Jordan Hansell told reporters Monday on a conference call. Deliveries will start as soon as two years from now as NetJets bolsters its fleet of more than 700 planes. The Columbus, Ohio-based company probably won favorable financial terms as planemakers work to rebuild order backlogs, said Michel Merluzeau, an aviation consultant for G2 Solutions in Seattle. “This is a favorable time to buy,” Merluzeau said in a telephone interview. “It’s a good demonstration of the anticipation of cycles.” NetJets’ transaction covers as many as 275 Bombardier Challenger aircraft, including 100 firm orders. The Cessna portion of the deal consists of as many as 150 Citation Latitude jets, of which 25 orders are firm, according to a statement. Bombardier deliveries will begin in 2014, and the Cessnas will start arriving in 2016, NetJets said. “It’s prudent to take a stand now and make a decision now to be sure that we’re well positioned to compete over the longer term,” Hansell said on the conference call. The order is the largest ever for business aircraft, according to NetJets, eclipsing the $6.7 billion list value for the company’s March 2011 purchase of as many as 120 Bombardier planes. In October 2010, NetJets agreed to buy as many as 125 Embraer SA Phenoms, with a list value of $1.05 billion. NetJets’ previous two deals were rare bright spots for a global business-jet industry that saw the value of deliveries tumble 29 percent from a 2008 peak through 2011, according to a report published in April by consultant Teal Group. “All the manufacturers want to make a deal Tuesday,” said Janine Iannarelli, president of Houston-based plane broker Par Avion. “They’re able to secure significant discounts because they are fleet orders. You wield a lot of power when you go in and place an order like that.” Fleet buyers typically pay less than catalog prices, and neither planemakers nor customers disclose those terms. The $9.6 billion value for the order is based on list prices for the jets, Hansell said, without giving further details. Hansell is building on steps taken by predecessor David Sokol to strengthen the fleet after the company cut back by about 20 percent since the end of 2008 as demand fell for luxury travel. The business-jet industry typically rests on three pillars: operators such as NetJets, corporate buyers and wealthy individuals. Ordering Challengers and Citations brings NetJets a bigger class of executive aircraft after the Bombardier order, which was for planes in the Montreal-based company’s Global series, and the purchase of Embraer’s Phenoms. “By increasing the range and endurance of our fleet, we will allow our owners to get to even more destinations worldwide,” Hansell said in the statement, which was issued after the close of regular stock trading. Bombardier, the world’s largest business-jet maker, fell 2.4 percent to 3.65 Canadian dollars in Toronto Monday, while Textron slumped 3 percent to $23.58 in New York as North American indexes declined. The Class A shares of Omaha, Nebraska-based Berkshire dropped 1.1 percent to $120,715 in New York. Dave Sylvestre, a spokesman for Providence, Rhode Island-based Textron, said the company had no immediate comment on the NetJets order. Bombardier said the order included an aftermarket support agreement with a value of as much as $2.3 billion if all aircraft options are exercised. For Bombardier, the order is equal to about four years of Challenger production, said Walter Spracklin, an analyst with RBC Capital Markets in Toronto, who has an outperform rating on the Canadian planemaker’s stock. “This gives significant visibility into their product backlog for the Challenger series and will give them the comfort they need to raise production levels,” Spracklin said. Bombardier’s Challengers can carry as many as 12 people, depending on the model and the cabin configuration, according to the planemaker’s website. Cessna’s Citation can fly as many as eight passengers, according to a company statement. Larger business jets have been the industry’s strongest segment in recent years, buoyed by “high net-worth individuals in emerging markets,” Joseph Nadol, a JPMorgan Chase & Co. analyst in New York, said in a note Monday. The NetJets order is a “positive development” even as a slowing global economy stokes concern that demand may wane for private jets, he wrote. From: The Daily star

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today buffett sinks 96 bln in private jets amid slump Arab Today, arab today buffett sinks 96 bln in private jets amid slump

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 14:57 2017 Monday ,20 February

A giant initial public offering on track

GMT 14:50 2017 Monday ,20 February

Energy Market Research

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January

GMT 07:16 2017 Monday ,20 February

Global arms trade highest since Cold War

GMT 06:10 2017 Monday ,20 February

Tourism shows signs of recovery in Egypt

GMT 05:45 2017 Monday ,20 February

Brexit U-turn ruled out by many in EU
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday