After inking a revised labor agreement with its pilots last month, NetJets has signed a deal that could see it spend over $6 billion with options for up to 232 of Bombardier's Challenger 3500s.
The unit of Berkshire Hathaway already operates 88 of its predecessor, the Challenger 350.
The popular super-midsize private jet features a cabin six feet high with a flat floor.
NetJets has signed options for up to 232 super-midsize Bombardier Challenger 3500 private jets.
It is typically offered in an eight-seat configuration and has a nonstop range for coast-to-coast flights.
A number of programmatic competitors, including Flexjet, VistaJet, Airshare, and Nicholas Air, feature the aircraft.
FlyExclusive recently said it would replace its large cabin Gulfstream fleet with preowned Challenger 350s.
Bombardier also confirmed that NetJets was the unnamed customer who placed a firm order for a dozen of the Challengers back in December. That deal carries a retail value of $326 million.
Bombardier President and CEO Eric Martel said, "The Challenger 3500 jet continues to impress with its ultimate combination of refined cabin experience, proven reliability, and top performance, perfectly aligning with the needs of NetJets' discerning client base."
"As we evaluate demand and overall growth within the market, we are confident the extension of our super-midsize fleet will continue to differentiate NetJets as the worldwide leader in private aviation," according to a spokesperson for the fractional operator.
The deal with Bombardier follows similar agreements last year with Textron Aviation and Brazil's Embraer.
NetJets' agreement with Textron could see it add 1,500 aircraft valued at around $30 billion over the next 15 years.
The Embraer agreement will see it add as many 250 Praetor 500 midsize jets, valued at around $5 billion.
In 2022, it was the launch customer for Bombardier’s Global 800.
NetJets, Inc., including its aircraft management unit Executive Jet Management, is the largest U.S. private jet charter/fractional flight provider.
According to Argus TraqPak, it racked up 609,515 flight hours in 2023, a 1.8% gain.
Second-place Flexjet, Inc. flew 204,836 hours last year in North America, while third-ranked Vista Global operators flew 136,511 hours.
Charter and fractional flight hours were down 4.6% last year, although they were still 28.7% higher than 2019's pre-Covid numbers.
NetJets' growth has been constrained since the pandemic surge, mainly by aircraft in its fleet.
In 2021, it was the first major provider to shut down jet card sales as consumers swarmed to private aviation. It stopped renewing existing jet card clients when their hours ran down, and its wait list for fractional customers stretched to more than a year for some of its most popular models, including the Phenom 300, its entry-level jet.
Demand was so strong NetJets even stopped offering interim leases covering the flying between when a customer signs to buy their slice of an airplane and when the aircraft is delivered.
As industry demand ebbed, NetJets introduced leases starting at 25 hours (instead of the typical 50 hours per year) and brought back its jet cards (which also start at 25 hours), albeit with significantly more restrictions.
According to research by Private Jet Card Comparisons, NetJets has the largest pipeline of prospects who didn't buy from it during their last purchasing cycle but are considering it for the future.
