Textron shares sharp rise after expanding private jet deal with Berkshire's NetJets

Takeaways

Textron has agreed to extend an aircraft sales agreement to NetJets, a private jet provider owned by Berkshire Hathaway.
The agreement gives NetJets the option purchase an additional 1,500 business jets from Textron over the next 15 years.
NetJets will also be able to purchase the new Cessna Citation Ascend when it becomes available in 2025.

Textron (TXT) Stock took off as the aircraft maker expanded its deal to sell planes to private jet provider NetJets, owned by Berkshire Hathaway (BRK.A).

The new agreement gives NetJets the option to purchase up to 1,500 additional Cessna Citation jets from Textron over the next 15 years, expanding the company's existing fleet. Additionally, it gives NetJets the ability to increase the number of aircraft it purchases each year, allowing it to add the Cessna Citation Ascend when it becomes available, as well than the current Citation Latitude and Citation Longitude aircraft.

The companies indicated that They had worked together for more than four decades, with NetJets purchasing more than 800 planes from the Wichita, Kansas, aircraft manufacturer during that time. Financial terms of the deal were not disclosed.

Textron CEO Ron Draper said that by expanding and integrating the Ascend into the NetJets lineup, the business jet company will “offer its global customers even more versatility and flexibility to accomplish their missions.”