Buffett bombards Bombardier with $9.6 billion!

Posted By: Religare
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In a sudden move that stumped everyone, Warren Buffet's Berkshire Hathaway Inc. had their third plane purchase in two years with the largest ever order for business aircraft, worth USD 9.6 billion.

Contradicting the weakening demand for private jets due to the economic slowdown, NetJets boosted its fleet of more than 700 aircrafts with 275 Bombardier Challenger aircrafts along with 150 Citation Latitudes from Textron Inc's Cessna, anticipating the stepping up of orders from emerging nations. The Bombardier deliveries will commence from 2014 while the Cessnas will come in 2016.

NetJets Chief Executive Officer Jordan Hansell, "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."

Overshadowing all their previous deals in a move to fortify the company after a 20 per cent drop since 2008, the Challengers and Citations will bring NetJets a bigger class of executive aircraft.

Textron tumbled 3 per cent to USD 23.58 accompanied by Berkshire going down by 1.1 per cent to USD 120,715 in New York yesterday, while the world's largest business-jet maker, Bombardier plummeted 2.4 per cent to C$3.65 in Toronto.

Read more about: warren buffet
Story first published: Tuesday, June 12, 2012, 13:31 [IST]
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