Fractional ownership provider NetJets has placed orders that could end up totalling $9.6 billion with Bombardier and Cessna for up to 425 new private jets.
If all options are exercised, the deal could ultimately comprise up to 275 Bombardier Challenger aircraft, and up to 150 Cessna Citation Latitudes, says NetJets in a statement. It added that this is the largest single private jet deal in history.
The deal includes firm orders for 100 Bombardier jets, comprising 75 Challenger 300s, with deliveries to start in 2014, and 25 Challenger 605s, with deliveries to begin in 2015, said Bombardier in a statement.
The airframer said this firm order is worth $2.6 billion. If NetJets elects to exercise its options for all 175 additional aircraft, the deal value will rise to $7.3 billion.
The Bombardier deal includes an after market support agreement for up to 15 years, which could end up being worth $820 million. It will see Bombardier provide scheduled and unscheduled line and heavy maintenance support for NetJets' Challenger 300 and 605 Series aircraft.
The Cessna component of the deal includes firm orders for 25 Cessna Citation Latitudes, with deliveries to commence in 2016, and options for 125 more.
"This purchase demonstrates our long-term planning and represents our ongoing commitment to providing unparalleled safety and service in aircraft uniquely customized for our owners," said NetJets Chairman and CEO Jordan Hansell.
NetJets added that the purchase is part of its 10-year business plan, which includes continuous renew of its 725 strong fleet of aircraft.
NetJets categorises the new Bombardier and Cessna aircraft under its "Signature Series."
"The Signature Series planes are the first aircraft that NetJets helped design from start to finish," said the company. "These aircraft are bigger, faster, quieter and offer longer range than similar aircraft of the previous generation. The purchases will provide options to expand the capabilities of NetJets' North American and European fleets."
NetJets is a unit of US investment holdings company Berkshire Hathaway.